Generally lease terms and be between 1 to 5 years, there are also options to refinance the lease at the end if you are still enjoying the vehicle.

The ATO sets the residuals based off the length of the lease to match average depreciation.

At the end of the lease the residual quoted at the beginning will be due, with this you have several options. 

Most drivers will take this opportunity to move into another vehicle, trading or selling the current vehicle to cover the final payment and enjoying their new vehicle.  Any funds over the residual goes into your pocket tax free any losses are covered by you, that is why it is important to pick the correct vehicle.

Loving your current vehicle?  No problem, extend the tax savings by extending the lease for a further term or simply look to pay the final payment and own the vehicle.

Salary sacrificing a vehicle through a novated lease can be an option for a business owner but they do need to also be an employee and draw a salary from the company.   A novated lease is not available to self employed people.

The finance company own the vehicle during the lease, you lease it from them.

No, not while you are running a novated lease, but you actually don’t want to own the vehicle as your tax benefits would disappear.

At the end of the lease, you can look to pay the residual and own the vehicle, however you would possibly only look to do this if you no longer had the option to lease the vehicle and continue receiving tax benefits.

No but you would be highly advise to.  You receive a tax benefit for all expenses put through a novated lease along with GST savings too, realistically you want to put as much through the lease as possible.

Running costs for a novated lease are a budgeted, meaning you pay for what you use.  Underspend, great those funds will be coming back to you via payroll.  Overspend and we will make an adjustment from your pre-tax salary with payroll top your account up. 

Not a problem, we can recalculate the lease to accommodate the change in your km’s driving.

Yes you can. If our fleet policy isn’t suitable you have the option to use your own policy.  You need to pay for the policy annually and submit a reimbursement for the funds to be taken from your driver account.