I have recently enquired about a novated lease, I would like to purchase a motorcycle as it is cheaper to run and easier to park (more environmentally friendly). The lease company has told me that you cannot have a motorcycle on a novated lease. I don't understand as I can have an SUV or sports car
The tax advantages of a novated lease are related to the statutory formula method for valuing car benefits. As a motorcycle does not fall within the definition of a car, the statutory formula method cannot be used, so the tax advantage won't apply.
If the lease company was to allow a novated lease, it is highly likely that the overall costs to you would be higher than if you were to buy or directly lease the motorcycle.
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