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Finance Services

Salary Packaging

Salary packaging is a very effective strategy for employees that have a private motor vehicle.  Our facility to provide a fully maintained novated lease is well managed and accurately reported in terms of daily transactions and Fringe Benefits Tax (FBT).  Our experienced consultants will clearly explain all you need to know about novated leasing, salary packaging and the benefits that are derived from this cost effective planning strategy.

What is a Novated Lease?

The simplest way to explain a novated lease is to first explain a finance lease, and then add the novation.  A finance lease is a loan agreement made between an individual and a financier where the financier pays for the goods and the individual makes payments to the financier for a specified period followed by a residual or "balloon" payment at the end of the lease term to own the vehicle outright.  A novation agreement is an add-on to the finance lease which transfers the obligations of the lease from you to your employer.  The novation is the agreement that allows you to pay for the costs of the lease and associated running costs of the vehicle out of your pre-tax salary.  This often leads to large tax savings which is why many people use novated leasing to purchase their cars.

What is the difference between a maintained and non-maintained Novated Lease?

A non-maintained Novated Lease is a straight lease.  You are not including the running costs of the vehicle.  However, whenever you have a Novated Lease you are automatically entitled to the tax free running costs of your vehicle, so one way or another you should always include these costs within your salary package or you would be missing out on a large taxation advantage.
A maintained Novated Lease will include all costs required to maintain your vehicle within the establishment of your lease.  You will often be able to achieve additional fleet discounts on your servicing and maintenance and will not be burdened with the management of your vehicle costs.  Using a maintained Novated Lease should allow you to receive a maximum taxation advantage on your vehicle.

Car Buying

If you go direct to a dealership and request pricing on a vehicle no matter how much discount you achieve you are never really certain on if you have obtained the best price for the vehicle.  InterPrac has developed a car buying service that will allow you to purchase vehicles via fleet departments, hence achieving greater discounts on your next vehicle purchase.

Car Disposal

You will generally gain the best price for your used vehicle via a private sale, however this often creates a burden on your time.  For this reason many of us skip the hassle of private sale and trade our vehicles in at the dealership where we generally receive considerably less than similar vehicles are advertised for.  InterPrac can provide this option, although can also provide an alternative with a national auction house that will provide you with a guaranteed minimum price that is generally above the trade-in price.

Contact an InterPrac Consultant

Click here and send us an email and one of our experienced, friendly consultants to contact you, discuss your options and answer your questions.