how do you mean?
the bloke that does all the novated leases for our company in aus has given me lots of info/figures but i cant make much sense of it all - hence dumbass lol
ive asked him to explain it all a bit better, so should hear back from him tomorrow.
was just looking for some extra advice here.

as a way to pay less tax and save a bit more on my 450k mortgage, by putting another 20k into redraw/offset i thought it might be a reasonable idea
thanks

I understand what you're trying to achieve.

My question was have you sat down and calculated what its going to cost you versus how much you may possibly save.

In relation to saving on tax it may be viable to take a standpoint that every dollar you spend doesn't equate to a dollar saved in tax.

You will only ever achieve a deduction based on your marginal rate of tax nothing more nothing less.

No one will be able to speculate on your situation as its not theirs.

You may also need to consider adjusted taxable income for child support (if applicable).

[QUOTE=mARC;649000]I understand what you're trying to achieve.

My question was have you sat down and calculated what its going to cost you versus how much you may possibly save.

[COLOR="Red"]I think this is what i was given today by the lease provider (via email), but i dont really understand it[/COLOR] :o

In relation to saving on tax it may be viable to take a standpoint that every dollar you spend doesn't equate to a dollar saved in tax. [COLOR="red"]thanks[/COLOR]

You will only ever achieve a deduction based on your marginal rate of tax nothing more nothing less. [COLOR="red"]not sure i understand this (see - dumbass..)[/COLOR]

No one will be able to speculate on your situation as its not theirs.

You may also need to consider adjusted taxable income for child support (if applicable).[/QUOTE]
nah, no child support issues.
thanks alot!

What is this 'tax' thing you're all talking about?

Based on the $160,000 you posted in the OP consider this hypothetical

Tax Rates for basis of calculation were found here [URL="http://www.ato.gov.au/individuals/content.aspx?doc=/content/12333.htm&mnu=42904&mfp=001/002"]ATO Individual Tax Rates 2011/12[/URL]

Please note this example is very simple, and takes on-board a few assumptions.

I have not taken any consideration into the application of Medicare Levy.

Please also note that legislation is prone to change which may deem the variables used to be obsolete.

[IMG]http://i43.tinypic.com/kc3gx.png[/IMG]

Summary:

With Deduction: $5,700
Without Deduction: $9,550
Difference: $3,850
Cost of Difference: $10,000
Opportunity Cost: $6,150

[B]This post is not to be considered 'in any way, shape or form', as advice.[/B]

i really appreciate your help, but this is why i failed accounting..

is there an age limit of the car at end of lease?

from memory its 7 years? does that affect your plan?

changes in the rules mean you no longer have to do bulk k's

BUT I did it a while back, (not leaseback tho) halfway through my personal situation changed and to get out it cost me $7k in cold hard cash

thb its not worth the hassle, even if it frees up cash to offset your mortgage

thats just my opinion, once bitten and all that

Linc's company did the same, the Lease guys come out and try and sell the idea to you. It looks good at initial glance, but when you investigate a bit further, it really wasn't worth it.

In the end, his company ended up giving them the choice, company car, or receive $13k a year extra take home salary and you provide your own car & fuel. We took that option and bought the WRX. We only live 10 min from his work, and he doesn't have to use his car during the day. Paid cash for the car, so no loan, no lease, no problems. Plus if he leaves the company, he still has a car, and no financial outlay. But that might not be an option for you.

The tax saving just wasn't there to go down the road of novated lease.

[QUOTE=thebish;649028]is there an age limit of the car at end of lease?

from memory its 7 years? does that affect your plan?

changes in the rules mean you no longer have to do bulk k's

BUT I did it a while back, (not leaseback tho) halfway through my personal situation changed and to get out it cost me $7k in cold hard cash

thb its not worth the hassle, even if it frees up cash to offset your mortgage

thats just my opinion, once bitten and all that[/QUOTE]
its max 9yrs old at the end of the term, so since my car is a 2010 that is no issue.
good to know about the kays, we would do 10 to 15k max a yr now
cheers

[QUOTE=Shez;649037]Linc's company did the same, the Lease guys come out and try and sell the idea to you. It looks good at initial glance, but when you investigate a bit further, it really wasn't worth it.

In the end, his company ended up giving them the choice, company car, or receive $13k a year extra take home salary and you provide your own car & fuel. We took that option and bought the WRX. We only live 10 min from his work, and he doesn't have to use his car during the day. Paid cash for the car, so no loan, no lease, no problems. Plus if he leaves the company, he still has a car, and no financial outlay. But that might not be an option for you.

The tax saving just wasn't there to go down the road of novated lease.[/QUOTE]

similar situation to me, but i dont know if my income is comparable in regards to minimzing tax etc.
thanks