Hi, I have a novated lease and have two questions - My car had an accident last year while it was under the lease and we have had repairs done to the car. Is this Tax deductible. Also, I came to know that the employer can claim back the GST, and refund to the employee. however, my employer hs never done it. please confirm
Howdy @tauras6,
Under a novated lease, the car is leased by your employer from a financing company. Your employer usually pays for the running costs and claims deductions. As an employee, you can't claim tax deductions for expenses related to a car under a novated lease. This includes repairs from an accident.
Your employer can claim GST credits for the GST included in the lease charges and running costs of the vehicle. As the vehicle is being leased for carrying on their business. Whether the GST savings are passed on to you depends on the specific terms of your salary packaging agreement.
You'll be best to check with your employer about having the GST refunded to you.
Howdy @tauras6,
Under a novated lease, the car is leased by your employer from a financing company. Your employer usually pays for the running costs and claims deductions. As an employee, you can't claim tax deductions for expenses related to a car under a novated lease. This includes repairs from an accident.
Your employer can claim GST credits for the GST included in the lease charges and running costs of the vehicle. As the vehicle is being leased for carrying on their business. Whether the GST savings are passed on to you depends on the specific terms of your salary packaging agreement.
You'll be best to check with your employer about having the GST refunded to you.
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