Packaged Car Lease
Instead of buying your next car outright, you may be able to lease the car and pay all your running costs through your salary package.
Whilst salary packaging does attract fringe benefits tax (FBT), the further you drive each year the less FBT you have to pay. Also, by paying some costs yourself, you can reduce your FBT liability.
Let's consider John and Jill, each on a salary package of $45,000 p.a. They each buy a $30,000 car, John through a personal loan and Jill through a packaged lease. Each drives about 30,000 km p.a.
After paying for all car expenses, Jill's packaged car lease gives her nearly $3,000 more in after-tax, take-home pay (see table below).
| The car packaging difference* |
John Not packaged $ |
Jill packaged $
|
| Gross salary package |
45,000 |
45,000 |
| Total lease and running costs |
- |
- 12,570 |
| Employee contribution |
- |
+ 3,300 |
| FBT |
Nil |
Nil |
| Taxable salary |
45,000 |
35,730 |
| Income tax on salary |
- 10,347 |
- 7,427 |
| After-tax salary |
34,653 |
28,303 |
| After-tax car cost |
- 12,570 |
- 3,300 |
| Net take-home pay |
22,083 |
25,003 |
*Above table is an illustration only.
Contact our Leasing Hotline on (02) 9561 2913, E/N: 88886 or email: leasing@pcu.com.au to discuss leasing options, obtain a quote and lodge an application. We can also provide you with an insurance quote.
*The promoter is the Police Department Employees’ Credit Union Limited. Entries commence on 01 September 2011 and close on 30 November 2011. Draw open to all Police Credit Union Members. If you apply and are approved for a Lease between these dates you will automatically be entered. There is 3 x Supercar hotlaps to be given away. The prize is only a lap in V8 supercar. Each prize is valued at $833. The prizes are valued at a total of $2499. The winners will be drawn at 9am on the 2nd December 2011 at Level 27, 1 Market Street Sydney NSW 2000. The winners will be notified in writing, by a telephone call and by public announcement in the Sydney Morning Herald on the 5th December 2011. If the prize is not claimed there will be a redraw at 9am on the 2nd March 2012 at Level 27, 1 Market Street Sydney NSW 2000. The winners of the unclaimed prize will be notified in writing, by a telephone call and by public announcement in the Sydney Morning Herald on the 3rd March 2012. Level 27, 1 Market Street Sydney NSW 2000. The Police Department Employees’ Credit Union Limited. ABN 95 087 650 799. AFSL/ACL No. No. 240018. Level 27, 1 Market Street, Sydney NSW 2000.
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