A novated lease, also called salary packaging a car, is an increasingly popular arrangement where an employee leases a vehicle from a finance company, and his or her employer takes over the financial obligations under the lease. Under most arrangements, the employer makes lease payments on the employee?s behalf, and then deducts the payments from the employee?s pre-tax income, leaving the employee with more take-home pay.
Summary: A novated lease, also called salary packaging a car, is an increasingly popular arrangement where an employee leases a vehicle from a finance company, and his or her employer takes over the financial obligations under the lease. Under most arrangements, the employer makes lease payments on the employee?s behalf, and then deducts the payments from the employee?s pre-tax income, leaving the employee with more take-home pay.
Source: http://www.jeteye.com/jetpak/363a3386-8fac-40de-b23d-f4d609bb3d28/
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