The most notable benefit of a Kia novated lease is the money you’ll save. With a Kia novated lease, your repayments are made using your pre-tax income, much like salary sacrificing, which in turn reduces your taxable income. You can choose to bundle your running costs, like fuel, charging, rego, insurance, and servicing, into your regular repayment, reducing your taxable income even further.

You’ll avoid paying GST on the purchase price, and its running costs, and if you purchase a hybrid or electric model, there are savings to be had with Fringe Benefit Tax (FBT) reductions as well.

Not at all, these are very different solutions. A car loan is repaid with your post-tax income, meaning you pay tax on your earnings before making loan payments. In contrast, a novated lease for a Kia is paid with your pre-tax income, which means your lease payments come out before taxes are deducted, thereby lowering your taxable income.

This setup usually results in significant tax savings, often outweighing the interest paid on the lease. With a Kia novated lease, you can enjoy greater financial benefits - and more flexibility - compared to a traditional car loan.

Fringe Benefits Tax (FBT) is applied to benefits you receive from your employer for personal use, such as a car. If your employer covers costs for your personal life, it can create an FBT liability for them. With novated leases, FBT can also be a factor, but we address this by combining your pre-tax and post-tax salary contributions.

This post-tax portion is known as an “employee contribution,” which helps offset the FBT liability. At LeaseLab, we tailor the employee contribution to your unique situation to ensure compliance while maximising your tax benefits.