An ATO approved INCOME SPLITTING incentive designed to:
REDUCE your TAX & turn your car at home into an income producing asset!
Benefits of an Associate Lease
Great Tax savings and much more using your car at home
Employee (higher income earner) Reduces their tax
Associate (normally spouse) increases their income
An associate lease is an arrangement between the employer, employee and the employee’s associate (usually spouse). The associate either owns or leases a car and is responsible for paying all running costs. The car is then leased on to the employer under a fully maintained operating lease, and its use provided as a fringe benefit. The employee gives up salary, partly pre-tax and partly post-tax (to ensure no FBT), in respect of the lease payments.
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’. It does not require any finance or banks to be involved and there is no age restriction on the vehicle.
Associate Leasing is ideal if you aren’t looking to purchase a new car and are happy with your current car. 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!
our team of experts are here for you
We would love to help you save money