Hi ATO,
I've been reading the threads regarding Novated Lease and have a query.
I have a Novated Lease that I pay part of it from my salary before tax and the other part from my salary after tax. My employer doesn't get involved with any transaction at all. I have never been asked by my employer to provide any information so they can claim any discounts.
Would I be able to discount any work-related car expenses?
Thanks a lot, CC
Hi @ TwinCam21,
You wouldn't be able to claim any work related car expenses.
In order to claim car expenses you need to own or lease the vehicle. When you salary sacrifice a vehicle through a novated lease arrangement, it's your employer who's leasing the vehicle from the finance company. Please see car expenses you can't claim
The non-deductibility applies to both pre-tax and post-tax contributions. The car is a fringe benefit your employer provides to you. Your employer incurs an FBT liability. Reportable Fringe Benefit Amounts (RFBA) are reported on your income statement. You don't pay tax on the amounts, but they do count towards other calculations. Making post-tax contributions, like paying for the fuel, reduces your employer's FBT liability and your RFBA. Had your employer paid for the fuel, they'd have a higher FBT liability and you'd have higher RFBA.
I hope this explains things, please let us know if you have any further questions
Hi @ TwinCam21,
You wouldn't be able to claim any work related car expenses.
In order to claim car expenses you need to own or lease the vehicle. When you salary sacrifice a vehicle through a novated lease arrangement, it's your employer who's leasing the vehicle from the finance company. Please see car expenses you can't claim
The non-deductibility applies to both pre-tax and post-tax contributions. The car is a fringe benefit your employer provides to you. Your employer incurs an FBT liability. Reportable Fringe Benefit Amounts (RFBA) are reported on your income statement. You don't pay tax on the amounts, but they do count towards other calculations. Making post-tax contributions, like paying for the fuel, reduces your employer's FBT liability and your RFBA. Had your employer paid for the fuel, they'd have a higher FBT liability and you'd have higher RFBA.
I hope this explains things, please let us know if you have any further questions
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