How Fuel Gets Discounted with a Novated Lease
Having to keep your car topped up with fuel is likely one of the less exciting aspects of car ownership for most people. Especially with the fluctuating price of fuel. Thankfully, with a Novated Lease, your fuel is always discounted, removing the stress from having to choose what day to fill up in order to save your hard earned money.
How big is this discount?
A Novated Lease will save you up to 30%* on fuel by using your pre-tax income, and paying with the convenience of a fuel card. A fixed monthly fuel budget means that you can be unaffected by inflated fuel prices. Not only do you slash the excise on fuel, but you also avoid the fringe benefits tax. Fuel costs are simply bundled into your repayments on the lease. How easi!
There’s no need to worry about losing money if you don’t spend your entire fuel allowance for the period. A Novated Lease will recredit any unspent fuel allowance back to you at the end of the lease. However, if you end up going over the amount budgeted for fuel, you may need to recalculate the lease to include the additional costs. (By the way, it’s easi to adjust your allowance online if you’re regularly exceeding it!)
If paying less and avoiding tax on your fuel sounds good to you, and you’re looking for a new car, a Novated Lease might be for you.
See how much less you could pay with our new fuel savings calculator
*Based on a salary of $80,000+ annually. Percentage of savings will be different depending on individual circumstances.