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In Australia, Novated Lease is an agreement between three parties that are, the employee, the employer and the lease company. In this type of agreement, the employee hires a vehicle from the lease company and the employer agrees to be responsible for the vehicle that has been hired. In most cases, the employee doesn’t have to worry about making payments since the employer pays for the leased vehicle from the employee’s pre tax salary income.

For debt consolidation go to www.consolidationdeal.com.au For life insurance quotes go to www.lifedeal.com.au There are many types of Novated lease agreements and these types of agreements include:

- operating lease
- finance lease
- fully maintained lease
- non-maintained contracts
- split agreements and
- partial agreements.

Each of these types of lease agreements has its own benefits.
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Salary Packaging

An increasing number of employers in Australia are offering salary packaging of vehicles mainly because this allows them to offer a car to employees without purchasing a fleet of expensive vehicles for the company’s use. Novated lease salary packaging offers various benefits to both employers and employees and listed below are a few things that will help you understand if Novated agreements are ideal for you or not.
read more >>> Novated lease agreements are beneficial to both employees and employers since these agreements ensure that employees get tax savings where as employers save money on company vehicle costs. Listed below are a few important benefits of Novated Lease agreements.

Employee's Benefits

There are various benefits employees can enjoy if they opt for Novated Lease agreements. One of these benefits is, getting to use a leased vehicle without having to worry about making payments every month, since the employer makes the payments. The payments made towards the vehicle’s running costs are made from the employee’s pre tax salary income and these payments are made every month or at the decided time by the employer to the lease company.

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Employer's Benefits

The primary benefit of opting for a hired car is that the employer does not have to add vehicles to the company car’s fleet which means that he can save a lot of money. In addition, by hiring a vehicle employers do not have to hire a fleet manager to take care of company vehicles, which ensures that employer’s can save additional resources.

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