New Motorcycle, Doing It On A Novated Lease

[fraser_john]

This "may" be a bit off topic, but I'll proceed regardless.

I have taken a new job in Melbourne, which for me means about a 100km commute. I used to ride the old GTR1000 when I was there before, but she is getting a bit long in the tooth and I wanted to try and get my travel expenses accounted for pre-tax i.e. novated lease.

I decided to call around about novating a motorcycle. No chance from most lease companies I worked with.

I did find one in the ACT that was quite happy to novate motorcycles, now, here is the GOOD BIT, if you novate lease a motorcycle and use it to ride to work on, there is NO FRINGE BENEFIT TAX PAYABLE at all. There must be some special ruling about motorcycles, probably put in place to support the post office.

So, all those that ride motorcycles and use it for their regular commute, look into novating a new bike, I was looking at a fully maintained (fuel, rego, servicing, tyres etc included) GTR1400 and it really was going to work out. But have whimped out and am getting a Ford Focus Econetic instead.

Those interested can PM me and I will forward the details of the leasing company in the ACT.

 

[earle]

there is NO FRINGE BENEFIT TAX PAYABLE at all

That may not be quite right. Motorcycles are categorised as a 'vehicle other than a car' and as such do not give rise to car fringe benefits however they can give rise to residual fringe benefits depending on the usage. These residual fringe benefits can be exempt from FBT if the private usage is only between work and home, and other wise very minor. Check out ATO linky

Can't beleive I'm talking tax on a brewing site.

 

[fraser_john]

Hmmm, it may have been the high number of kilometers I was expecting to then that made it FBT free in my quotes. But still, for people looking for a new bike, novating it is an option many are unaware of.

 

[raven19]

But have whimped out and am getting a Ford Focus Econetic instead.

Oh FJ, next you will be moving from a HERMS to a RIMS in the brewhaus mate. For shame!

 

[Ducatiboy stu]

More like going from AG back to kits.. :lol:

 

[earle]

Hmmm, it may have been the high number of kilometers I was expecting to then that made it FBT free in my quotes. But still, for people looking for a new bike, novating it is an option many are unaware of.

Could be. The other thing to consider is that some companies will give you "their version" of the law to make there financial products seem more attractive. Not saying that this is the case in this situation but you have to be careful.

 

[mxd]

My company used to do this with Bikes and 1 tonne utes, so I had a twin cab 1 tonner. As the law gives an example, the ute is used to and from work with the occasional trip to the tip.

I had to fill in a form to specify the k's between my house and work then justify the rest. As I didn't do any more there was no issue with me, but others pushed there luck so my work has now banned the FBT free parts.

 

[seemax]

Enjoy the car ... and you can expect < 3.0L/100km on the highway!

 

[jaikai]

Interesting how some companies have different policy on novated lease vehicles.
I have a 04 toyota, dump it in march...We use RACV salary packaging. hard work
getting a ute or 4wd...bizarre weight rule in place, mate wanted a certain 4wd but didnt make a set weight even with all the acc you could throw at it. for high income earners, great idea. assocated lesing is another good option.

 

[fraser_john]

Enjoy the car ... and you can expect < 3.0L/100km on the highway!

Yeah, that is one reason I wanted it, from where I live, it is about 75kms freeway driving before I hit traffic. Even though it is a fully maintained lease, I still want to save as much $ for my pocket as possible.

 

[thelastspud]

Enjoy the car ... and you can expect < 3.0L/100km on the highway!

Really? driving at 100kms an hour or what?