Understanding novated leases: are they worth it?

Imagine driving a new car while reducing your taxable income at the same time. That’s the core appeal of a novated lease – a salary packaging arrangement that lets you use pre-tax dollars to finance your vehicle and cover running costs like fuel, insurance, and servicing. 

But as with everything, there’s more to the story. With recent changes to fringe benefits tax, exemptions for electric vehicles, varying interest rates, and different options depending on your employment situation, it’s crucial to understand how it all works. 

Bongiorno Group Directors, Nick Fennessy and Ricky Caldow, break down the details to help you understand if a novated lease is the right move not. But, as with all matters finance, it’s best to get tailored advice.  

The Money Doctors is proudly brought to you by leading financial services organisation the Bongiorno Group, the preferred tax and accounting partner for the Australian Medical Association Victoria. 

For more information, please call 03 9863 3111 or visit https://bongiorno.com.au/  

This general advice has been prepared without taking account of your objectives, financial situation or needs. You should consider the appropriateness of this advice before acting on it. If this general advice relates to acquiring a financial product, you should obtain a Product Disclosure Statement before deciding to acquire the product. 

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