General Leasing Information
Q. What is novated leasing?
A. A lease is considered a "novated" lease if it is a tri party arrangement involving a lease provider (Rhodium), an employee (yourself) and an employer. A Deed of Novation is signed by all three parties to authorise the employer to make lease payments to the lease provider - sometimes through the use of a salary packager - from the employee’s gross salary (that is salary before tax). The remaining portion of the employee's salary is therefore subject to Pay As You Go (PAYG) tax. This means you don’t incur PAYG tax on the periodic lease payments, although you may have to pay Fringe Benefits Tax (FBT) on the lease. Please seek advice from your employer / salary packager / financial advisor.
