In Australia, like most countries around the world, the Government taxes wage and salary earners with an Income Tax. Here in Australia, it is called “Pay As You Go” Income Tax.

The PAYG Income Tax rates can change from time to time, however the current rates of Income Tax for an Australian Resident are;

When you salary package your car using an nlc novated lease part or all of your salary deduction will be paid using Pre Tax dollars. This will reduce your Taxable Salary. In doing so, you will pay less PAYG income tax as your Taxable Salary as been reduced.

Go to the novated lease comparison to see the effect of an nlc novated lease on PAYG income tax.