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Novated lease

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Hi,
I currently have a novated lease between myself and the novated lease company. I have then entered into an agreement with my employer to have the payments salary sacrificed. There is a portion of the novated lease payment pre tax and remaining is taxable l. Can I claim any deductions for using the vehicle for work purposes. Thanks
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Hi @Chrismi,

 

Thanks for your question!

 

Generally speaking, if you have a novated lease arrangement, it means that your employer is responsible for the vehicle expenses and is effectively the "owner", while you lease the vehicle from them. Because you do not technically own the vehicle, then you are not eligible to claim for any expenses that arise from driving it.

 

If the vehicle is leased and owned by you, and you are not reimbursed by your employer for any of the vehicle expenses, then you may be able to claim deductions.

 

Hope this helps,

 

Rachael B.

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ATO Certified Response

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Hi @Chrismi,

 

Thanks for your question!

 

Generally speaking, if you have a novated lease arrangement, it means that your employer is responsible for the vehicle expenses and is effectively the "owner", while you lease the vehicle from them. Because you do not technically own the vehicle, then you are not eligible to claim for any expenses that arise from driving it.

 

If the vehicle is leased and owned by you, and you are not reimbursed by your employer for any of the vehicle expenses, then you may be able to claim deductions.

 

Hope this helps,

 

Rachael B.