Taking advantage of a novated lease for Australian Defence Force employees is a fantastic way to own your car and enjoy all the benefits of owning a new car at a heavily discounted price. Perhaps a novated lease for Australian Defence Force employees isn’t as exciting as helicopter piloting or major exercises, but it’s certainly a rewarding and worthwhile option. Read on to learn more.
If you’re an ADF member, you might be interested to know about the tax benefits of a novated lease. A novated lease enables members of the armed forces to restructure their income to purchase items either pre- or post-tax. These items may include airline lounge membership, motor vehicles for private use, childcare at Commonwealth or Defence child care centres, laptops or notebook computers, and uniforms.
One of the primary benefits of novated leasing for Australian Defence Force employees is that they can get the same benefits as government employees. For example, they can own a vehicle, a car, or a van. They can also get a variety of other extras at a heavily discounted price. Although it’s not quite as exciting as helicopter piloting or effective exercise, the tax benefits of novated leases for ADF employees are great. Learn more about Vehicle Solutions ADF salary sacrifice.
In Australia, employees of the Australian Defence Force enjoy many benefits, including the ability to purchase a vehicle through a leased vehicle arrangement. In addition to allowing employees to purchase a vehicle, the novated lease allows these employees to enjoy a suite of other extras at a significantly discounted rate. Besides saving employees significant amounts of money in the long run, this arrangement also enables users to take advantage of tax benefits.
The ADF’s remuneration hike of two per cent in the past year is ahead of inflation, which is expected to reach two per cent by year’s end. In addition, a novated lease allows ADF employees to take advantage of tax benefits by reducing taxable income. For example, a novated lease allows members to pay for their car’s upkeep and operating costs directly from their payroll, which reduces the amount of tax owed.
If you’re an Australian Defence Force employee looking for a new car, there are re-packaging options to suit your needs. For example, the Fleetcare Novated Lease is a three-way salary packaging agreement that lets ADF employees pay for their car payments and running costs directly from their pay. It also saves you money on GST and income tax. This article will explain more about the benefits of re-packaging your novated lease.
The first option is salary packaging. It involves a salary-related lease with the employee paying the associated running costs from their salary. The benefit of salary-packaging is that it puts more money in your pocket and spreads out maintenance costs, replacement tyres, and servicing over the lease term. In addition, novated leases give you the option of paying off your car sooner and keeping the vehicle longer. Learn more about Vehicle Solutions ADF salary sacrifice.
As a member of the Australian Defence Force, you’re entitled to the same benefits government employees enjoy. So, for example, if you want to own a car, you’re eligible for Novated Leasing, a three-way salary packaging arrangement that offers a wide range of benefits, including vehicle assistance. Not only does it offer you the freedom to own your vehicle, but it also comes with GST and income tax savings.
Besides vehicle assistance, the ADF provides remuneration packages allowing members to buy specific pre-tax or after-tax items. Some examples of such benefits include airline lounge membership, motor vehicles for personal use, childcare at Commonwealth and Defence child care facilities, laptops and notebook computers, uniforms, and more. These benefits can add significant savings for Defence members and incentivise them to purchase new vehicles.
Vehicle assistance for APOD members after 1 July 2004
The Military Rehabilitation and Compensation Act (MRCAS) is a comprehensive program for the compensation and rehabilitation of ADF members. The program is based on the Safety, Rehabilitation and Compensation Act (SRCA) and Veteran’s Entitlements Act (VEA). It also offers a range of other benefits not provided under the DRCA. For example, in addition to vehicle assistance, MRCA covers the cost of vehicle repairs.