When you enter into a novated lease you can save money in three main areas:
- GST is not paid on the cost of the car, the lease repayments will be GST free.
- Lease expenses are 'salary sacrificed', meaning they are deductible against your pre-tax income and reduce your income tax payable.
- Residual balloon payment - at the end of the lease, if you sell your car to fund the balloon payment, you keep any upside.