Novated Lease vs SmartLease
This section elaborates on our two leasing products (Standard Novated Lease and the SmartLease) and the differences between these. Also contained within this section is a guide to your eligibility for each product.
Our SmartLease product is a "reverse" novated lease where your employer takes out the lease and then provides the vehicle to you as the employee via the novation agreement. Under a "standard" novated lease however the lease is taken out by you, and you novate the vehicle to your employer.
Since under each product the lessee is considered as a different party, different conditions apply to each lease type. These are outlined in more detail below.
Registration
With each of our novated leasing products our vehicles are always registered to the lessee. Under a SmartLease this will be registered to the employer while under a standard novated lease the vehicle wil be registered to you as the driver. This will also determine whether your registration budget is setup based on private costs or business costs. With each type of registration we set our postal address as the contact address so we receive renewal notices and registration labels so we can manage on your behalf.
Stamp Duty on purchase of vehicle
Purchase stamp duty applies on the purchase of new vehicles which is calculated as a percentage of the purchase price. Under our Smartlease product given that it is registered to the employer some employers (especially government employers) can claim stamp duty exemptions. If you are eligible for a stamp duty exemption you will see this on your lease quotation. Under the standard novated lease product since the vehicle will be registered to you - the individual - no stamp duty exemption will apply.
Fuel
Rhodium has access to certain fuel contracts that vehicles registered to government can access. These fuel contracts apply to StarCard (Caltex and Ampol) and Mobil who currently hold the NSW Government contract. Under a SmartLease if your employer is government you will be given access to these contracts, under a Standard Novated Lease no access is provided. Access to these contracts will determine any discounts applicable, and any fuel card administration fees that also apply. You will be notified of any admin fees on the quote and the lease application form.
Eligibility
Eligibility to our lease products is determined by who your employer is and a rough guide is included below.
ACT Government employees can access our SmartLease product
Commonwealth Government employees working for an FMA Act Agency are eligible for our Standard Novated Lease product
Commonwealth Government employees working for a CAC Act body may be eligible for our SmartLease product if a Master Lease Agreement is in place with Rhodium and we will advise if this is the case within your quotation. If no Master Lease Agreement is in place our standard novated lease product will apply.
Employees of a private company may be eligible for our SmartLease product if a Master Lease Agreement is in place with Rhodium and we will advise if this is the case within your quotation. If no Master Lease Agreement is in place our standard novated lease product wil apply.
For exact clarification on your situation please let us know and we can further advise you.
