Pay For Your Next Holiday With Your Car at Home
What is an Associate Lease?
An Associate Lease is a way of saving tax by Salary Packaging your running expenses on your existing vehicle. Many of your car’s expenses can be claimed under an Associate Lease, including your lease or loan if you have one, fuel and servicing costs, rego, insurance and even tyres and car detailing.
- Associate Leasing is ideal if you are not looking to purchase a new car and are happy with your current car but would like to take advantage of the tax savings involved with Salary Packaging a lease.
The ASSOCIATE would need to be on a lower tax bracket (preferably under $75,000) to be viable and needs to have or establish an ABN.
So after the associate claims depreciation and car loan interest (if any), the associate’s taxation liability from the lease rentals is minimal (or zero).
An Associate Lease is slightly different to a Novated Lease, the difference being that the Financier is replaced with an Associate. The Associate might be your husband or wife, partner, child, parent or anyone who has an ‘association’ with you.
- It does not require any finance or banks to be involved and there is no age restriction on the vehicle.
Even if it is under finance, you can take advantage of the tax savings involved with Salary Packaging an Associated Lease. It will help you pay off your loan.
There is no cost to the employer to set this up
We setup and manage the whole process to ensure no FBT and maximum remuneration to both parties.
Absolutely you can. Make the most of the ATO incentives so that you can spend your savings on things that matter!