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nlc • novated lease • frequently asked questions
What happens if I do not spend my entire running cost allowance?
What happens to any money I haven't spent at the end of each year?
What happens if I leave my employer?
What happens if I go on leave?
Can I package tolls and infringement notices?
Can I have extras fitted to my car?
How do I track my car expenses?
If at the end of your lease your account has a credit balance, we refund this balance to your employer. Your employer will deduct tax at your marginal tax rate before returning the money to you.
If you are leaving your employer, any unspent funds will be taxed and returned to you in your termination pay.
Your running costs will vary over the life of your lease and you will usually incur costs such as tyres towards the end of your lease.
If nlc finalised your account each year, you would probably get a refund in the first few years, then receive an invoice in the final years. It makes more sense to spread your funds over the life of your lease. Therefore any unspent money at the end of each year, rolls into the following year to allow for larger expenses toward the end of the lease.
If you leave your employer, the novation agreement ceases and the obligations created under the lease agreement revert to you. This means you are responsible for meeting the monthly lease rental and the car's operating expenses.
If you leave your employer, you may:
Your Vehicle Salary Packaging Consultant can give you advice on the most suitable option.
Where you take paid leave, there is no change to your salary packaging arrangements. Your employer continues to deduct the same amount of salary in the usual way.
If you take extended or unpaid leave, you will need to speak to your employer about your company's leave policy.
Unless you have a special arrangement with your employer, if you take extended unpaid leave, you cannot salary sacrifice because you are not receiving wages from your employer. While you are on unpaid leave, you must personally meet your monthly lease rental and car's operating costs. You must also return any fuel or nlc fuel & maintenance card we have given to you. You must notify us when you return from unpaid leave and resume receiving salary from your employer.
Tolls and road traffic infringements are not car operating expenses, as defined by the FRINGE BENEFITS TAX ASSESSMENT Act 1986. You must pay for tolls and road traffic infringements out of your own pocket.
When you order your car you are free to select the options you want, which are then included in the base price of the car.
If during the term of your lease you wish to fit extras to your car, you must pay for this out of your own pocket. You cannot seek reimbursement from nlc for this type of expense.
You must immediately notify your insurer of any extras that are fitted to your car.
Each quarter nlc provides you with a Vehicle Expense Report to allow you to track your Fringe Benefits Tax (FBT) liability and your car's operating expenses.
The Vehicle Expense Reports provide information on:
The FBT tracking data is based on the odometer readings you provide when you use your fuel or nlc fuel & maintenance card. It is very important that you quote your car's odometer reading every time you use your fuel or nlc fuel & maintenance card.
The account balance shown on your Vehicle Expense Report is a provisional balance only. A final reconciliation of your account in completed at the conclusion of your Novated Lease.
At the conclusion of your Novated Lease, your employer refunds any unspent funds to you in the form of taxable salary or, if you are leaving your employer, your employer reconciles the unspent funds in your termination pay.
If at the conclusion of your Novated Lease there is a shortfall in funds, your employer will arrange for additional deductions to be made from your salary. These will be made before tax.
If you would like further information on our services please contact us on:
03 8699 7000
1800 643 044
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