LEASEPLAN NOVATED LEASES

AGENDA

 What is a novated lease  Why Novate?

 Why Novate with LeasePlan?

 Products and Services  Fringe Benefits Tax (FBT)  LeasePlan Online  Motor Vehicle Reports 

SalaryPlan

 Customer Service and Support PAGE 2

WHAT IS A NOVATED VEHICLE LEASE?

 A three way agreement – LeasePlan, Employee and Employer  Employee packages the finance and running costs  Employer agrees to salary deduction and pay LeasePlan  LeasePlan provides vehicle finance and fleet management services

WHY NOVATE?

 Reduce taxable income  GST free vehicle purchase and vehicle running costs  Your choice of vehicle (new or used* or existing*)  Lease one or more vehicles**  The potential to build equity for tax free profit  Convenience – set and forget fortnightly budget 

*

Used vehicles can be financed - age cannot exceed 4 years or 100,000km at start of lease and 7 years 200,000km at end of lease



**

Subject to employer requirements

PAGE 4

WHY NOVATE WITH LEASEPLAN?

 Customer service – support at every step Experts to help you   Novated Lease consultants will call you to provide assistance Account Manager on-site fortnighly meetings with UNSW employees  Volume buying discounts  LeasePlan Online – real time quotes  Monthly Motor Vehicle Reports (MVR) PAGE 5

WHY NOVATE WITH LEASEPLAN?

 Professional maintenance control  Residual value flexibility (novated finance lease)  No Hidden Costs:    No establishment fees No start-up document fees No upselling of unnecessary items e.g. warranties, tinting  Fully Open and total disclosure of every element of the novated lease monthly payment:   residual value interest rate PAGE 6

PRODUCTS & SERVICES

 Choice of Novated Finance Lease Product CarPlan Standard or Redundancy Protection Feature  Vehicle finance – competitive interest rates

Running Costs Included

 Fuel (Caltex fuel card supplied)  Maintenance/Servicing  Registration and renewals  Replacement Tyres  LeasePlan Total Cover comprehensive insurance  Roadside Assistance (if applicable) PAGE 7

FRINGE BENEFITS TAX (FBT)

 Fringe Benefits Tax (FBT) is applied to vehicles that are packaged  From 1 April 2014, all leases subject to a flat 20% FBT rate regardless of distance travelled  Eliminate FBT using the Employee Contribution Method (ECM)  post tax payment PAGE 8

EMPLOYEE CONTRIBUTION METHOD (ECM)

 A post-tax contribution is made towards the running cost of your novated lease to eliminate the FBT liability  Makes novated leasing more attractive  Increases the salary packaging advantage and improves the tax effectiveness  LeasePlan Online quoting tools will calculate the ECM showing the impact on your disposable income  The package cost needs to be split into two parts in the payroll:  Pre-tax component: becomes the tax free cost of the vehicle  Post tax component: eliminates/reduces the FBT Liability PAGE 9

LEASEPLAN ONLINE

 www.leaseplan.com.au

 UNSW customer code:

1000040154

 Employee Driver Registration  Create and compare multiple quotes  Complete credit application and vehicle order  Feel free to contact LeasePlan at any time: 1300 668 572 PAGE 10

LEASEPLAN ONLINE – SALARY ANALYSIS

 Novated lease quotation – salary package analysis   Indicates tax effectiveness of novated lease ECM (pre-tax & post tax payments) vs 100% pre-tax PAGE 11

MOTOR VEHICLE REPORTS (MVR)

 Issued monthly  Budgeted costs versus actual expenses  Opportunity to adjust if required  MVR history available at LeasePlan Online PAGE 12

SALARYPLAN’S ROLE

 SalaryPlan is your salary packaging administrator  They will manage your salary deductions for your LeasePlan novated lease  SalaryPlan are their to support you with any queries you have in regards to the deductions and FBT on your novated lease.

 SalaryPlan has a dedicated team of specialists locally, available to assist employees with any queries relating to salary packaging of their novated lease:  Phone:  Email:

1300 790 140 [email protected]

PAGE 13

CUSTOMER SERVICE & SUPPORT



www.leaseplan.com.au

LeasePlan Online customer code:

1000040154

Novated Driver section (supplier finders) Access news, tips, FAQ’s to make the most of your novated lease  User Guides and CarPolicy

(access via UNSW website:

http://www.facilities.unsw.edu.au/staff-contractors/motor-vehicles  Novated Leasing Consultants:    Phone: 1300 668 572 Email: [email protected]

Visit www.leaseplan.com.au/novate-driver  Periodical newsletters / Monthly Motor Vehicle Reports PAGE 14

DISCLAIMER

This presentation should be considered guidance only.

As personal circumstances vary LeasePlan recommend you seek your own independent financial / taxation advice regarding novated leasing.

PAGE 15

PAGE 16