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Novated leasing

Introduction

Eligible staff can take out a novated lease on a vehicle of their choice, as part of their salary packages. NLC manages the university's novated lease program.

Salary Packaging

Salary packaging is a term used to describe a form of financial arrangement between Monash University and you (regardless of whether you earn 'wages' or 'salary'), which allows you to take your remuneration in a form other than take home pay.

Salary packaging refers to an arrangement whereby you seek to reduce your gross income and in exchange, receive certain benefits from Monash University. Because of the application of Australian tax legislation, this can be an effective way to structure your remuneration.

Leasing represents a significant financial commitment by you and involves some risks that you must understand before entering into a leasing arrangement. Monash University strongly recommends you seek independent financial advice before entering into a novated lease arrangement.

How a novated lease works:

A novated lease is a variation to a standard finance lease. Instead of you entering into a lease directly with a bank, you enter into the same lease arrangement with a novated lease provider and then transfer the obligation of the lease repayments to Monash University. Monash University then makes the lease payments to the novated lease provider on your behalf, whilst you remain an employee of the university.

A novated lease allows for the lease payments to be deducted from your salary in pre tax dollars. In some circumstances it may be beneficial to have part of the salary sacrifice contribution deducted from your post tax income.

In the event that you cease to be employed for whatever reason, Monash University's obligation to pay the lease stops and the obligation reverts back to you.

By entering into a novated lease, you can lease any vehicle of your choice and enjoy the full tax benefits of a "Monash University car".

Eligibility

To be eligible to undertake a novated lease at Monash University, you must hold a tenured appointment or a fixed term appointment.

What does our novated lease provider do?

NLC logo

Our novated lease provider, NLCmanages the University's employee car salary packaging scheme. NLC provides full fleet management services under a novated lease structure. The services they provide to you include:

  • salary costing, incorporating FBT, maintenance & fuel allowance and lease costings
  • vehicle acquisition (new vehicles only) and disposal
  • novated lease funding
  • issuing of Fuel and Maintenance Cards
  • general consultancy

Who to call for more information?

For information on Novated Leases please contact nlc on telephone: 1800 643 044 and one of nlc's dedicated Packaging Consultants will be happy to answer any questions that you may have.

Telephone: 1800 643 044
Website: www.nlc.com.au

If you have any questions about your overall salary packaging arrangements at Monash University, contact Monash HR on 20400

Policy

FAQ

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