Do I need a fully maintained or a non-maintained lease?

This varies from vehicle to vehicle. This is another term for the remaining value of an asset as it has fully depreciated in value over time.

Are the leases removed off my business balance sheet?

This depends on the car leasing company, but no business wants to own an ageing asset. Many will remove the vehicles from your balance sheet while maintaining the residual value risk themselves.

What are the benefits of leasing a car through a business?

Leasing a car through a business can offer tax advantages, such as claiming GST and lease payments as deductions. It may also help manage your cash flow.

Can you write off a car as a business expense in Australia?

Yes, you can write off a car as a business expense in Australia, including lease payments and running costs, provided the vehicle is used for business purposes.

How does a novated lease save tax?

A novated lease saves tax by allowing you to pay for the car and running costs from your pre-tax income. You can then claim these costs against your income tax, reducing your taxable income and gaining a tax return. Note that leasing a car doesn't grant you ownership rights, you are simply granted permission usage of the car during the lease term. When the lease ends, you return the car or pay the remaining fee to purchase it outright.

Courtney Allan, Graduate publisher at Finder

Courtney Allan

Graduate publisher

Courtney Allan was a writer at Finder covering personal finance. She has written for a number well-known publications and companies including the NRMA.

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