Anyone ever done a novated lease with the same car twice? Both myself and my partner work for the government and both have access to novated lease through salary sacrifice. Was thinking of getting a short term lease to maximise the savings first through myself, then re-leasing the car in my wife’s name to double dip on the savings?
Novated lease same car twice with self and partner
LRichie312 on 02/02/2022 - 12:59
Comments
what would Darryl do?
Not sure what Darryl would do, but I think Richie312 is trying to lease a car and then sub-leasing it to his wife to double-dip on the savings!
Public servants and double dipping. How does it not surprise me. Even then they get it wrong.
So paying twice for the same car.
You're good to proceed as no one would have thought to legislate against this….
If you're talking at the same time then I'm fairly certain you can't. If you're talking about leasing it yourself first for say 2 or 3 years then your wife following that then that should be possible (you can usually lease the same car again at the end of the lease and most will let you lease a used car with some restrictions) but will largely depend on the leasing company so best to contact them and ask. Also worth checking with your accountant to make sure you're going to realise the benefits you think you will.
Tax fraud is a thing. Just sayin'.
It's a bit vague but I'm guessing you mean that you will novate a car for a year then sell it to your wife who will novate for a few years after that?
Fill your boots but it's hardly double dipping. If anything it doesn't make any financial sense at all.
Yes people. These are the brilliant minds running our government departments.
Sounds like tax avoidance and if it is then go see the ATO to see if it is legal before you do anything.
If it's for tax minimization then go see an accountant so they can setup the scheme correctly.Do you mean your wife takes up a lease after your one finishes? Or somehow both at the same time.
The latter isn't gonna be possible as you'd have two loans secured by the same car.
You could theoretically borrow money to pay off the residual on the first lease and effectively start a second…. still sounds dodgy to be selling the car to yourself though.
Sounds like a plan.
This may only constitute a tweak, but you could arrange the lease with your own blind trust (from capital or raised from a lender), which buys the vehicle of your choice. You and / or your wife pay well above the odds for the lease, which effectively funds the trust with tax-free cash, as well as paying for the lease (should you actually want one). Permanently refinance the 'lease' to 'upgrade' the vehicle, using the same arrangement. Or just keep the existing one and re-finance.
Remember that in addition, admin, fuel and everything else transport-related can be covered, at the very 'leased', by the trust.
Sorry, twas a bad pun on 'least'
Of course, you can begin paying for everything with the trust, and end up owning nothing other than your own home. But for all I know you'll be doing something like that already!
I believe the way it works is that the car will be lease by the employer and given to you for use. In return you pay the employer the expenses incurred to lease the case for you. So, unless you both work with the same employer, the option is unlikely to happen. Reason why novated lease isn't a great idea if you are looking to change jobs. Then you will need to buy out the car or arrange for alternative finance arrangements. Although, the new employer could take up the lease too.
Wouldn't the lease need to align with the registered vehicle owner?
Yeah, prob need a transfer a owner.
Don't see why every gets so negative on OP
I think there is a fee associated with that transfer of ownership, which is another financial component for consideration.
Likely, like stamp duty.
Maybe OP thinking joint ownership from outset?
Is this common amongst car to have second owner? Does that mean OP can only lease half the car?
My head hurts trying to make sense of OP's question…
Take a Bex and have a good lie down
.Struth.. that goes back a long way lol! nanna probably still has a few boxes of that and vincents in the pantry… lol
In the past I was able to do 4 consecutive 1 year leases; the rationale was not to save tax but to give me more flexibility in case I left my job, but the tax position ended up being better as well as the depreciation of 4x1 year leases was substantially higher than 1x4 year lease.
got a mistress? trying triple dipping :P
Anyone ever done a novated lease with the same car twice?
I assume you mean you lease it one year and then your partner leases it the next year.
No, I haven't done it - but I've looked at it. It doesn't make a lot of sense. You'll get shafted on GST when you move the car between you an your partner. There's FBT quirks that mean you'll pay FBT on the original value of the car.
Of course, both of these quirks come down to the leasing company and often they don't know any better or will bend the rules to do the deal.
IMO, you're better off flipping the car after a year and buying a new one, as @knasty did.
Heck, with the current used car market, get 2 cars, even if you don't need them.
Best off to buy one car each on a 1 year lease each to get maximum tax savings. Depreciation is highest in first year so provides greatest taxable benefit. Just be aware this option will mean a higher salary deduction.
ATO dodgy C’s investigation unit has entered the chat
I'm not sure exactly what you're talking about doing here, but it sounds illegal (or at least there'd be a rule against that somewhere)! lol