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BMW NOVATED LEASE
BMW NOVATED LEASE
At BMW Finance we understand that you may be looking for flexibility in financing your vehicle, including potential tax benefits. It’s for this reason that we offer a novated lease option for your BMW.
A novated lease arrangement is only available if you are an employee and your employer agrees to the novated lease salary sacrifice arrangements. Please check with your employer.
WHAT IS A NOVATED LEASE?
A novated lease is a three-way arrangement between you, your employer, and BMW Finance. Your employer pays your monthly vehicle lease payments out of your pre-tax salary. You may be able to achieve certain tax benefits from this salary sacrifice arrangement. If you change employer, you can generally continue the salary sacrifice arrangement with your new employer if they agree.
By adding the BMW Full Circle guaranteed future value option to your lease, you could choose to return the vehicle to us at the end of your agreement with no further liability (subject to satisfying fair wear and tear and kilometre requirements).
WHAT IS “SALARY PACKAGING” AND WHAT ARE ITS BENEFITS?
Usually (without salary packaging), your employer deducts income tax from your salary, then pays you the net amount, which is your take home pay. Any finance instalments you have for a vehicle are then paid out of your take home pay. With salary packaging under a novated lease arrangement, your employer effectively reduces your taxable income by the amount of your lease payments. Paying the lease payments with pre-tax dollars (or sacrificing your salary) reduces your taxable income and therefore your Pay As You Go (PAYG) tax liability.
The benefit you receive from a salary packaged vehicle may be considered a “fringe benefit” for which fringe benefits tax (FBT) may be payable. Certain FBT exemptions may apply, though, to reduce or remove your FBT liability (for example, certain employers or qualifying fully electric vehicles). In addition to the possible PAYG tax benefits, a novated lease may also enable you to benefit from GST input tax credits which BMW Finance and your employer may be able to claim through the novated lease arrangement.
Usually (without salary packaging), your employer deducts income tax from your salary, then pays you the net amount, which is your take home pay. Any finance instalments you have for a vehicle are then paid out of your take home pay.
With salary packaging under a novated lease arrangement, your employer effectively reduces your taxable income by the amount of your lease payments. Paying the lease payments with pre-tax dollars (or sacrificing your salary) reduces your taxable income and therefore your Pay As You Go (PAYG) tax liability.
The benefit you receive from a salary packaged vehicle may be considered a “fringe benefit” for which fringe benefits tax (FBT) may be payable. Certain FBT exemptions may apply, though, to reduce or remove your FBT liability (for example, certain employers or qualifying fully electric vehicles).
Estimated weekly cost to take home pay
Worked example assumes:
- Annual salary of $130,000
- Net monthly lease payment of $1300
(GST-exclusive amount, assumes employer passes on GST input tax credit for GST on monthly lease payments)
Estimated weekly cost to take home pay:
Your take home pay (after taxes and lease payments are deducted), especially where FBT exemptions apply, could be higher by salary packaging a novated lease, than a non-packaged finance.
You should speak to your tax advisor or accountant about any tax benefits or implications a novated lease may have for you, taking into account your personal circumstances.
SUPERCHARGE YOUR BENEFITS WITH BMW FINANCE
SUPERCHARGE YOUR BENEFITS WITH BMW FINANCE
BMW Finance has enhanced our traditional non-maintained novated lease offer so that you can enjoy a range of benefits including:
- Fleet Vehicle Discounts (at participating authorised BMW dealers);
- Vehicle Servicing Inclusion (varies depending on the vehicle leased);
- Optional Guarantee Future Value with BMW Full Circle;
- No fringe benefits tax or luxury car tax (on select BMW fully electric vehicles);
- Potential GST savings;
- Inclusion of roadside assistance.
These options provide you the flexibility to customise your lease to suit your requirements.
How do I apply for a novated lease
1. Find out if your employer can support you with a novated lease.
2. Choose your dream BMW.
3. Contact your preferred BMW dealership to enquire about organising a BMW Finance novated lease.
4. Apply for a novated lease.
We will need your income and expense information, and will conduct a credit check. Your employer will also need to assist with your application.
5. Finalise your lease and novation agreements.
You and your employer will need to sign agreements with BMW Finance.
6. Enjoy the drive!
Ready to apply?
To apply for a BMW Finance novated lease, or to find out more, please contact an authorised BMW dealer and a qualified BMW Finance Business Manager can assist you.
BMW FULLY MAINTAINED NOVATED LEASING WITH FLEETPARTNERS.
BMW FULLY MAINTAINED NOVATED LEASING WITH FLEETPARTNERS.
Through an exclusive partnership between BMW Finance and FleetPartners, you now have the opportunity to get into a new BMW with a Fully Maintained Novated Leasing arrangement.
Through this arrangement, you can lease your BMW through BMW Finance, as well as arrange vehicle maintenance through FleetPartners, bundling your lease and budgeted running costs into one easy payment on payday.
This means you will be able to pay your vehicle running and maintenance costs, such as servicing and repairs from a combination of pre-tax and post-tax salary. A fully maintained leasing arrangement could benefit you through potential GST savings and possibly reducing the income tax you pay.
YOU CAN PLAN YOUR ARRANGEMENT TO SUIT YOUR NEEDS.
If you can access a fully maintained Novated Lease through your employer, FleetPartners can help you set a budget to cover your running costs to suit your budget and driving needs. If at any point your driving patterns change, you can change your vehicle running cost budget to match.
WITH FLEETPARTNERS YOU CAN ACCESS ALL THE BELLS AND WHISTLES.
Offering you an exceptional fully maintained leasing experience matching your ultimate driving machine, our arrangements can include the below maintenance options through FleetPartners.
- Scheduled servicing: As recommended by BMW
- Vehicle maintenance: Maintenance with discounts on repairs, parts and labour
- Tyres: Competitive pricing on tyre replacements and repairs
- Registration: Initial registration and CTP plus renewals for the life of the lease
- Electricity: Charging costs on electric vehicles.
- Fuel & fuel cards: Convenient fuel cards with access to outlets across Australia.
- Comprehensive insurance: Competitive insurance options through FleetPartners’ fleet policy.
- Roadside assistance & accident management: Help when you need it most – our team are available 24/7 to provide support.
Interested? Let’s talk next steps.
The calculator below will give you an estimate of possible tax savings through a fully maintained novated lease and estimated cost per week for a selected vehicle. We hope this will help you decide on your options.
Before you proceed, keep in mind that by clicking on the link below you will be leaving the website of BMW Australia Finance Limited and its related companies (“BMW”). FleetPartners Group has limited rights to use BMW trademarks and intellectual property, and you will be accessing and viewing information on web pages owned and managed by FleetPartners Group. The lease of a BMW or MINI vehicle may be supplied by BMW Finance, as part of a fully-maintained novated lease arranged by FleetPartners Group. BMW Finance does not otherwise have any responsibility or liability in respect of any products or services promoted, arranged or offered by FleetPartners Group nor any content published by FleetPartners Group, and BMW Finance does not provide any advice in relation to such products or services.
Once you are ready to proceed FleetPartners will:
- Provide you with an obligation-free quote on your dream car.
- Guide you through the finance application process.
- Send the required paperwork to your employer and coordinate the lease set-up.
- Order your vehicle and coordinate delivery.
- Liaise with your payroll department each payday for the single bundled payment.
BMW Finance and FleetPartners do not provide tax, legal or accounting advice. This material has been prepared for general informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Disclaimer
Fees, conditions and eligibility criteria apply.