Human beings are intrinsically ingenious and are capable of creating diverse types of innovative methods, by which their lifestyles can be altered in positive ways. The financial scheme of ‘Novated Lease’ can be regarded as one of such innovative inventions that have been purposefully created, for making the practical life more enjoyable. This is a specific type of financial agreement, which in fact is a prearranged one, and the participants of this contract are the employee, the employer and the finance company that agrees to the lease terms. The particular finance company will be the lessor and the employee will be the lessee.
In accordance with the structure of this finance contract, the employee agrees to forgo a certain portion of his or her monthly salary, and the employer, in turn, will deduct this agreed portion from the salary and will pass it to the finance company, which has advanced the money to the employee for buying the brand new car. One of the main attractions of this financial covenant is that, the deduction will be from the ‘pre-tax’ salary of the employee. This in actual sense means that the employee will be able to reduce his or her tax level considerably, and consequently will be able to enjoy more dispensable income. In addition to this attractive benefit, the concerned employee can also become the owner of a motor vehicle; moreover, he or she can choose the car, according to his or her own mental liking. Over and above, they will also get sufficient backup for fuel and for other kinds running costs.
The popular schemes that come under the label of ‘Novated Lease Australia’ are ‘Full Novated Lease’ and ‘Non Maintained Novated Lease’. These financial schemes provide a better option for all employers to accomplish ‘employee satisfaction’ and ‘employee retention’. Keeping the spirits of the employees always high will be the targeted objective of all HRM policies, and only by this way, the company will be able to enhance the overall productivity level of the company. Novated lease is one of the possible ways by which the company management can attain this specific target. Moreover, this can be achieved without spending any additional money, when the method of Novated lease is applied.
What are the benefits of opting Novated Lease Australia through professional finance companies?