The Calculator will allow you to do a comparison
between purchasing a vehicle privately and Salary Packaging a
motor vehicle through your Employer using a Novated Lease. The
comparison assumes the same repayments, terms & interests
rates using current tax rates and utilising the Employee Contributions
Method (ECM) to reduce Fringe Benefits Tax. All running costs
such as fuel, maintenance, tyres, re-registration and insurance
have been included in the calculations.
The Calculator is provided as a guide only for
comparison purposes and for you to assess if packaging a vehicle
is beneficial to your circumstances.
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To navigate
through the calculator, click on and enter the requested
details |
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| Employer
Type: |
When you click on the drop down box, you will
be given four choices
Full F.B.T Payable:
Click on if your employer is a Tax paying company engaged
in carrying on a business for profit or personal gain.
Concessional $30,000 Exempt:
Click on if your Employer is a Public Benevolent Institution
(PBI) or Health Promotion Charity.
Concessional
$17,000 Exempt:
Click on if your Employer is a public or non-profit hospital.
Rebateable 48% of $30,000:
Rebateable Employers are certain non-government, non-profit
organisations that which include certain religious, educational,
charitable, scientific, or public educational institutions,
trade unions, and various non-profit associations & organisations. |
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Employer
a Tax |
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| Reporting
Entity: |
This is relevant when Leasing a Luxury Car which is defined
as a vehicle with a GST Inclusive cost exceeding $57,009.00
(excluding on-road costs). |
| Annual
Salary: |
Enter your salary excluding Superannuation. |
| Vehicle
Type: |
Click on the vehicle that best describes your intended vehicle.
This is required to project maintenance, tyres & insurance
expenses. |
| Engine
Capacity: |
Click on the number of engine cylinders relevant to your
intended vehicle. This is required to project fuel & registration
expenses. |
| Annual
Kilometres: |
Enter the estimated annual kilometres you would travel,
as this will have a large effect on the overall benefit
of Salary Packaging the vehicle. Fringe Benefit Tax is calculated
as a statutory percentage of the vehicle cost (less On Road
Costs). As the total Kilometres travelled for the year increases
the F.B.T rate will decrease in line with the table below:
Total Kilometres traveled
during the year |
Statutory Percentage |
Less than 15,000 |
26 |
15,000 to 24,999 |
20 |
25,000 to 40,000 |
11 |
Over 40,000 |
7 |
If you do not travel your estimated kilometres and fall
into a higher F.B.T bracket, you will have to pay the higher
rate of F.B.T. |
| State:
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Enter the state your vehicle will be garaged in when the
vehicle is purchased. This will affect packaging costs due
to the differing stamp duty rates and registration costs for
each state. |
| Period
of Lease: |
Enter the period you would expect to keep your vehicle for.
This will affect your Lease payments as the longer the term
the lesser annual repayment cost. The Calculator will automatically
calculate the minimum allowable residual value within ATO
Tax guidelines. |
| Finished! |
Click on the RESULTS button and the calculator
will display the net advantage after tax between Salary Packaging
or not Salary Packaging a vehicle. |
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