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Personal contribution or trade in on purchase of novated lease vehicle

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Newbie

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Hi, 

Just wondering if there are any restrictions on putting a personal contribution or a trade in against the initial purchase or a novated lease vehicle. For example, if a new car's driveaway price is $50,000 and I either contribute $15,000 out of my pocket or provide my old car as trade in, are there any restrictions on this? The aim is to reduce the overall financing amount on the lease so that it doesn't deteriorate my pay too much. I would imagine there may be some sort of FBT impact?

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Community Support

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Hiya @Philo,

 

Thanks for your patience, we've sent this one through to one of our specialist teams and they've come back with a response. Basically, they've said as long as your contribution/trade in are part of the actual purchase agreement, and not just a reimbursement to the employer, they will reduce the cost price. This would reduce your FBT. However if the amount is a reimbursement to your employer, this might be an employee contribution, which would not decrease the cost price. The information has come from NAT 1054 - Chapter 7.

2 REPLIES 2
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Community Support

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Hi @Philo,

 

We're going to look into this for you and get back to you.

 

Appreciate you patience.

 

Regards,

Jodie2.

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Most helpful response

Community Support

Replies 0

Hiya @Philo,

 

Thanks for your patience, we've sent this one through to one of our specialist teams and they've come back with a response. Basically, they've said as long as your contribution/trade in are part of the actual purchase agreement, and not just a reimbursement to the employer, they will reduce the cost price. This would reduce your FBT. However if the amount is a reimbursement to your employer, this might be an employee contribution, which would not decrease the cost price. The information has come from NAT 1054 - Chapter 7.