A Novated lease is a three-way arrangement between you, your Employee and a Financier. A finance lease is set up between your Employee and a Financier while a Novation agreement is created between the three parties.

1. Novated Leases Australia
Introduction
Welcome to the Packaged Vehicle Program. This program is a fully maintained Novated lease
that represents a tax effective way of leasing a vehicle through your salary package. By rolling
all vehicle associated costs into a fixed monthly payment we make salary packaging simple and
hassle-free. We are leading Novated Lease and Salary Packaging provider in Sydney, Australia.
What can be included?
• New or Used Cars
• Motor Bikes
Why do your Employees want a Novated Lease?
• Your Employees will reduce their taxable income and the amount of tax they have to pay.
• The running costs of their car are deducted from their pre-tax income.
• Each fixed monthly payment includes:
o Finance Repayments
o Registration & CTP Greenslip
o Comprehensive Insurance
o Fuel, Maintenance & Tyres
Why do Employers Offer Novated Leases?
• It’s like giving your Employees a pay rise without it costing you a cent, they’ll get thousands of
dollars in extra value from the same income.
• 1300bpo makes novating a car simple and hassle free for everybody.
• One invoice covering all vehicles is issued each month and the amounts are fixed for the lease
duration
• We provide all the information you need to fully recover the monthly costs from your
Employees’ Income.
• If an Employee leaves the company for any reason, the car goes with them and future
repayments are no longer the Employer’s responsibility.
• You are assigned your own dedicated Consultant to help resolve any queries that may arise at
any stage of the lease.

2. For further information on Novated Lease, please contact us on 1300bpocom
What is a Novated Lease?
A Novated lease is a three-way arrangement between you, your Employee and a Financier. A
finance lease is set up between your Employee and a Financier while a Novation agreement is
created between the three parties.
What is the Packaged Vehicle Program (PVP)?
The Packaged Vehicle Program (PVP) maximises the benefits of a Novated lease by including,
not only the finance payments but also the costs associated with the vehicle into one fixed
monthly payment. Significant tax benefits are achieved this way as a proportion of this payment
is deducted from the Employee’s pre-tax income.
Typically this fixed monthly payment can include:
• Lease payments
• Fuel costs
• Comprehensive insurance
• Registration renewal
• CTP renewal
• Repairs and maintenance
• Tyres
• 24 hour roadside assistance

3. Due to changes in the current income tax thresholds an increasing number of people are paying
too much Fringe Benefits Tax (FBT). By customizing a solution specifically for each Employee’s
needs and using Australian Taxation Office approved methods, we can reduce the FBT you pay.
What are the benefits to Employees?
• Significant Tax Benefits
• Receive Substantial Discounts on the purchase price of new vehicles through our established
dealer network.
• Reduced Amounts to Finance by claiming back the GST on the original purchase price (Luxury
car limits may apply).
• Registration, Insurance & CTP Automatically Paid
• Automatically Entitled to Australia Wide Roadside Assistance 24/7
• Automatically Entitled to the Services of OneCall.
OneCall can arrange all services and repairs for vehicles within four days in the Sydney,
Melbourne, Brisbane, Adelaide and Perth metropolitan areas.
• Through participating OneCall dealers, vehicles can be picked up, serviced, washed and
vacuumed, before being returned at a time that suits your Employees.
What type of vehicles can be placed on a Novated Lease?
Employees can lease new and used motor vehicles. However used vehicles must be less than 8
years old at the end of the lease term and the projected odometer reading at the end of the
lease must be no more than 200,000 kilometres.
The minimum amount that can be financed is $10,000.
Can Employees Novate more than one vehicle?
Yes. There is no limit to the number of vehicles that Employees can novate. As long as their
salary package can support it, they can also choose to package an extra vehicle for their spouse
or child. Please contact your Consultant on 1300bpocom for further information.
What term can be set for a Novated lease?
A Novated lease can be arranged for terms of between 12 and 60 months, in six month
increments.
What residual values are used?

4. A residual value is the amount left owing at the end of the lease term. It can also be known as a
“balloon payment”. The Australian Taxation Office has set minimum residual values and these
are set out in the table below.
Lease Term Minimum Residual
12 months 65.63%
24 months 56.25%
36 months 46.88%
48 months 37.50%
60 months 28.13%
How does an Employee arrange a PVP?
Step 1: Have them call us on 1300bpocom to speak with a Consultant. They will be provided
with a PVP estimate that outlines the tax benefits available to them and how it will affect their
take home pay.
Step 2: We will speak to you as their Employer to explain the process involved and assist with
finalizing the Corporate Authorisation Kit.
Step 3: We will negotiate with car dealers to secure the best price for your Employee’s new
vehicle. We can even help trade in their old vehicle.
Step 4: We will help your Employee complete their credit application over the phone and once
they’re approved, a delivery date will be set.
Step 5: They can pick up their vehicle!
What documents need to be signed?
1. The employee will be sent a Quote Requisition Form for them to sign together with the
Authorized Signatory of the employer. This document authorizes the Employee to apply for
finance and should be faxed back.

5. 2. Once the Employee has been approved for finance, they will be sent the lease documents to
sign and fax back prior to picking up the vehicle. There is no need for the Authorized Signatory
to sign this form.
3. After the vehicle has been picked up, the Novation documents will be sent to the Authorized
Signatory to sign and fax back. This document confirms that the payments for the vehicle will be
salary packaged.
4. A Human Resources Advice will be issued by 1300bpo within five business days of the vehicle
being picked up. This document details the amounts to be deducted from the Employee’s
payroll before and after tax as well as the GST input tax credit available to the Employer.
5. It is important to note that because payments are made in advance, it will be necessary to
deduct two months’ worth of payments in the first month.
6. A tax invoice for the Setup Fee will be issued together with the Human Resources Advice.
PVP Reporting
Quarterly driver report
Employees will receive quarterly driver reports that include statements detailing their itemized
transactions, such as fuel and a summary of their lease payments to date. A comparison of
budgeted and actual vehicle operating costs will help them track their expenses. If their
budgets are in substantial deficit, please advise them to contact a Consultant on 1300bpocom
Corporate FBT Summary Report
We will provide you with regular Corporate FBT Summary Reports. These are derived from the
information provided by your Employees when they complete their individual FBT Tracking
Reports.
The Corporate FBT Summary Report will identify who is on course to meet their kilometre
targets by the end of the FBT year on 31 March and who is not. Periodically employees who
have not yet completed their individual FBT Tracking Report, are requested to provide the
required information.
If you believe that an Employee will not meet their kilometre target, please advise them to
contact a Consultant on 1300bpocom
Transferring or Ending the PVP
What happens at the end of the lease?

6. A Consultant will contact the Employee before their lease ends. The options available to them
include:
• Pay the residual value to own the vehicle outright.
• Trade their vehicle for a new one and if the traded value is greater than the residual, the
surplus is a tax free profit.
• Sell the vehicle privately and if the sale price is greater than the residual, the surplus is a
tax free profit.
• Renew the lease at the residual value for a term of their choice, as long as the vehicle
will be less than 8 years old and have less than 200,000 km at the end of the new term.
What happens if an Employee leaves during the lease term?
The Novation agreement will need to be terminated if they leave. They can then either transfer
their Novated lease to their new Employer or continue to make finance repayments directly to
the financier until the end of their lease term.
It is their responsibility to ensure that their vehicle remains comprehensively insured. Please
advise them to call their Consultant on 1300bpocom to discuss the options available to them as
soon as they are thinking about leaving.
They will then need to fax a completed Termination of Novation Agreement form and a
reconciliation will be carried out.
What is involved with the reconciliation?
The reconciliation will compare the amounts that have been set aside as budgets versus the
amounts they have actually spent. If there is a surplus this will be refunded to you, in order to
withhold any tax and superannuation payable and then pass on only the net amount to the
Employee.
However, if there is a deficit, then the difference will be invoiced to you. The payment of the
deficit will be made through you as the Employer in order to maximize the Employee’s tax
benefits. You should withhold their final pay until the reconciliation is completed and any
deficit has been paid.
What if the Employee’s budgets don't cover their actual running costs?
All running costs are paid for using the budgets set aside from the monthly payments you
deduct from their salary. At the beginning of the lease, the budgets are set using estimates of
what the running costs are likely to be. The Employees will receive quarterly reports which

7. detail the actual costs incurred versus the budgets. This allows them to ensure that their
budgets are covering their actual running costs.
If they do not match simply advise them to call 1300bpocom and talk to their Consultant. It is
important to be realistic when setting budgets at the beginning of the lease, as a $220
Recalculation Fee will apply to cover the administration costs of any recalculations.
Unlock the capital invested in your fleet by selling & leasing back
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