Novated leases for Australian Defence Force employees benefit those who wish to save on their lease payments and take advantage of other tax benefits. Salary packaging is another way to get these benefits, reducing the amount of money you pay out of pocket. This arrangement also gives you the flexibility to purchase pre-tax and post-tax items.

Salary packaging

If you work for the Australian Defence Force, you’re entitled to the same benefits as other government employees, including car leasing through salary packaging. You can use a three-way novated lease, which lets you pay for your car and running costs out of pre-tax earnings. It effectively reduces your taxable income and increases your take-home pay, as you don’t have to pay the GST on your vehicle’s purchase.

Vehicle Solutions salary packaging can also help you save money in the long run because it reduces your FBT liability and increases your purchasing power. In addition, salary packaging can also help you increase your retirement savings. You can use a military pay calculator to determine what you’re eligible for to apply for salary packaging.

Salary packaging services are governed by the Government’s Guidelines on Remuneration Packaging. Employers must provide 21 days’ notice before terminating a salary packaging contract. The General Condition of the Contract also applies to salary packaging services.

Novated leases

Novated leases for Australian Defence Force employees allow them to finance the purchase of a new car with their salary. These contracts offer several benefits, including tax savings. These leases also allow employees to benefit from fleet discounts. However, a few important things must be considered before signing a contract.

The first major benefit of Vehicle Solutions novated leases for Australian Defence Force members is the reduction in their taxable income. In addition, many employees of the ADF are eligible for salary packaging through novated leases, which enables them to receive a lower monthly payment and benefit from various extras at a discounted rate. Another major advantage of novated leases for ADF employees is that the payments are taken straight from their paychecks, meaning no upfront deposit is required. Learn more about defence salary sacrifice.

Unlike a traditional lease, novated leases allow the ADF to keep using the car for longer without paying a large deposit. Furthermore, the ADF pays for the vehicle’s running costs directly from their pay. It also reduces their tax bill since payments for novated leases are deducted from their income.

Tax savings

For government employees, car leasing can be a lucrative choice. For example, the Australian Defence Force offers a novated lease option that lets employees pay for their car in instalments from their pre-tax earnings. In this program, employees don’t have to pay out-of-pocket upfront costs and can even receive GST savings.

As a Vehicle Solutions ADF member, you may be eligible to claim zone tax offsets, depending on where you work or live. It applies to those who work or live in remote locations and meet certain criteria. However, it is important to note that this tax saving is only available for vehicle expenses incurred while on military duty.

Expenses associated with the Australian Defense Force are tax deductible. Depending on the type of lease, you may be eligible to claim the GST on any car under six years old at the end of your lease. However, you should note that these expenses cannot be claimed if you are in a special combat force. In addition, you must record all subsidies you receive as income when you file your annual tax return.

Contacting a mobile leasing consultant

Defence is a national organisation that provides services and housing for Australians. Its members work with local people, contribute to local economies, and draw support from local suppliers. The organisation has strong links to regional Australia through its Defence Housing Agency (DHA). The Australian Defence Force has over 18,000 staff across the country, with 9608 employees based in Canberra and 5667 in other capital cities. Of these, 2,725 are based in regional areas.