Since you are doing it pre-tax, did they include all the FBT costs?

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[COLOR="Gray"]550Nm off a 2L... Just wish it was in the dak dak...[/COLOR]

FBT is going to be changing to a flat rate of 20% in the next few years.

Already has for lower km's driven for new agreements

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The more people I meet the more I like my Dog!

12.463 1/4 mile, not bad for an old school Liberty [DECEASED]

MY08 Liberty Tuned by STi

I tried to play this out across many different scenarios but the best I could come up with was 'wut?'

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As an accountant, you should know that if you are doing a novated lease, there is FBT portion?

You can't just use pre-tax money for a vehicle and not pay FBT.

I'm curious if this is included in the lease re-payments as mentioned or if there will be a later lump sum (or payback out of tax paid money to get a FBT benefit of $0).

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[COLOR="Gray"]550Nm off a 2L... Just wish it was in the dak dak...[/COLOR]

this is whats on the 20k quotation - (not sure if this helps clarify & I'm taking 24k instead)

employer fbt type - full fbt payable
fbt method- statutory
statutory percentage rate with *ECM- 20%
fbt base value- $20k
**gross taxable value- $4k

Yup, that's what it should be, is it included in your lease payments or as an additional cost?

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[COLOR="Gray"]550Nm off a 2L... Just wish it was in the dak dak...[/COLOR]

included

1) Correct;
2) Correct 'should more accurately state give rise to an FBT event, not pay FBT'; and
3) I have never seen an employee contribution factored into an agreement with an employee that wasn't either a director/immediate family member.

I suppose this makes sense due to structure of the loan, but then again based on the structure of the loan it could quite possibly give rise to a second FBT event.

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2 - Meh, 'rise to a FBT event = paying money somewhere.
3 - Most of the online companies I have seen use a contribution method as one of the examples on how to best maximise the lease.

I have never had a lease, so I'm interested to see how they work. Every time I have investigated, they cost a lot more than buying with personal cash or having the business buy them. If as the OP has stated, this works out to be 'interest free' I would be very suprised.

Would be good to revisit this in a year and see what the actual costs have ended up being for future reference...

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[COLOR="Gray"]550Nm off a 2L... Just wish it was in the dak dak...[/COLOR]

Ok but you'll be hard pressed to see this contribution come from someone whom doesn't have a vested interest.

Look at the logic of it. Would you 'as an employee', pay for the privilege of a company car 'which you need for your job?', where you prime objective isn't to reduce the overall liability of the entity so you can either re-invest in capital/increase cashflow, or reap the benefits of the cash in the form of dividends, etc?

Makes perfect sense, but we have no clear indication where the funding is coming from.


Agree, but the lease amortisation schedule would give this information straight away.

Would be interesting to know who the lender is 'external/internal funding', as this would answer a lot of questions.

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