Monday, July 14, 2008

"Vehicle Salary Packaging - How Can it Save You Money?" Part 2

Saving on the GST
The second way to save money when you salary package a vehicle via a Novated Lease (when you purchase from a car dealership) is through the GST savings. When leasing a vehicle, the financier claims the GST as an input tax credit, which means the employee is not required to finance this part of the total invoice.
Basically this happens because the finance company owns the vehicle and the employee is renting / leasing the vehicle from the financier.

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