frequently asked question
Answer:
If an employee leaves the company, the novated lease is terminated. The employee becomes responsible for the remaining lease payments directly with the finance provider. The employer’s involvement in the lease ends once employment ceases.
Answer:
No, the employee is responsible for the vehicle once the lease term ends or if employment is terminated. The employer is only responsible for facilitating payroll deductions during employment, and the vehicle lease is not considered a company asset.
Answer:
Yes, some novated leases are subject to FBT. However, the amount of FBT payable is eliminated by using the Employee Contribution Method (ECM), where the employee contributes a portion of the vehicle’s running costs from their after-tax income. This offsets the taxable value of the fringe benefit provided to the employee.
Answer:
No, offering a novated leasing program to your staff costs nothing to offer. The employer’s main role is to help facilitate the payroll deductions
Answer:
Yes, OptIn works with employers to provide salary packaging and novated leasing as a sole provider as well as part of a panel.
Answer:
With OptIn we provide a dedicated account manager to assist with payroll and accounts to ensure we do all the heavy lifting. Our accounts manager will also coordinate an education program to ensure staff are aware of the benefits and how to access these benefits.
