Cinco de Mayo ('fifth of May') may be a relatively minor holiday in Mexico (it's not a federal holiday so workplaces remain open); however, outside of Mexico it has evolved into a celebration of Mexican culture. Parties and festivals feature mariachi music, folk dancing and traditional foods.
Amidst our daydreaming about tacos, we came to realise our favourite Mexican snacks offer a good analogy for understanding the benefits of novated leasing. Read on to discover how.
A neat bundle – the burrito
The word burrito means ‘little donkey’ in Spanish; it’s thought to have been applied to the dish because, like a donkey, it carries a lot of different things.
Along the same track, with a novated lease all your car expenses are bundled into one set regular payment. This is deducted from your salary, so you won’t even have to think about it. By having your various expenses rolled up into one predictable amount, budgeting for your cost of motoring becomes a breeze.
Income tax savings – the meat/beans
This is the protein. It may not sound as exciting as some of other fillings, but it’s essential.
With a novated lease, you use your car expenses to drive down your income tax by paying part of them from pre-tax dollars, reducing your taxable income and making significant savings. Your dedicated consultant will show you how it works.
Electric vehicle savings – the holy guacamole
Dating back to the time of the Aztecs, guacamole goes beyond being a popular and tasty treat. It's jam-packed full of long-term benefits – just like EVs.
Once deemed an ‘indulgent’ option (just like smashed avo), EV ownership is more attainable than ever. Novated drivers can save thousands thanks to a recent policy change introduced under the Electric Car Discount Act. You're exempt from paying fringe benefits tax on EVs or plug-in hybrids priced under the luxury threshold ($89,332 for FY2023-24).
Advancements in technology and production have positioned more brands and models in the EV market at price points to suit all budget types – so we say, why not have your guac and eat it too?
Fuel & running cost savings – the double-dip
Double-dipping is frowned on at parties, but with a novated lease, it’s part and parcel.
Here’s how it works. With a novated lease, you save the GST on your car’s running costs, meaning you’re paying 10% less for fuel and other car expenses than the person next to you.
Next, double-dip on fuel savings by clocking up rewards (e.g. frequent flyer points) in addition to your GST savings.
Plus, add a layer of (sour) cream on top by saving the GST on the purchase price of the car as well.
Smarter servicing & repairs – the chili
A hot, spicy chili sauce is a must, but you don’t want it applied too liberally.
We feel the same way when it comes to servicing/repairs. Since over-servicing and over-charging can be hard for the average Joe to spot, our team of qualified mechanics ensure quality of work and provide access to fleet discounts on parts and labour.
