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Re: GST on Novated Lease

Newbie

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Replies 2

Hi,

 

I have a novated lease through company A but my employer has chosen to have all our salary packaging managed by company B. 

I've had the the lease with company A for two years (managed by company B) with the following breakdown and have had NO issues:

Pre-tax (ex GST): $330.29

GST on pretax: $33.03

Post-tax (ex GST): $219.92

GST on posttax: $21.99

 

We switched to company C on 1/4/21 (beginning of this FBT year). Since moving to company C, they are now charging me an addtional contribution GST on top of the GST posttax amount I am already paying. I have raised this with them and this was their response: 

The vehicle budget total is $605.23 as you have stated, but Contribution GST is then calculated on the total Post-tax for the vehicle.
$251.59 / 11: $22.87

 

As far as I can work out, they have added this up incorrectly (as I don't know where they are getting the $251.59 from) and are charging me an addtional GST contribution. Is this correct? Or are they correct in charging me 2 x posttax GST contributions? 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 1

Hiya @CW12,

 

It sounds like the figure you can't agree on is the $251.59. You would need to clarify this figure and ask where it has come from. The amount $22.87 is correct on $251.59.

2 REPLIES 2

Most helpful response

ATO Community Support

Replies 1

Hiya @CW12,

 

It sounds like the figure you can't agree on is the $251.59. You would need to clarify this figure and ask where it has come from. The amount $22.87 is correct on $251.59.

Newbie

Replies 0

Thanks Steph,

I heard back from company A and they've agreed company C seems to be charging me the gst twice. Hopefully I can resolve this with company C! So far I have been unsuccessful with them understanding the issue, hence my question! I assume what's they've done is added my post tax contribution and post tax gst together then charged another post tax gst amount again. Thanks again!