Novated Lease Circle Of Life

The Novated Lease Circle Of Life

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Workers offer their time and labor to employers for two, more or less, reasons:

  • To garner financial benefit.
  • They genuinely enjoy working.

Let’s face it – virtually everyone on planet Earth doesn’t like to work every single day, or be so excited to clock in that they have trouble sleeping at night because they have those proverbial butterflies in their stomachs.

There’s also one more reason why people submit to their employers’ demands, day in, day out – it pretty much falls under the “financial benefit” category, although it’s somewhat different – to receive the benefits packages their employers offer.

Some of the most popular individual benefits are:

  • Free daycare or babysitting
  • Repaying one’s undergraduate or graduate tuition, if not both
  • Providing assistance in local or regional relocation
  • Being granted the ability to video and/or audio chat from home on certain days or hours
  • Employers’ equal, dollar-for-dollar matching of healthcare retirement accounts

These five benefits typically aren’t available in any one benefit package, though other benefits are just as good – well, some are.

The Novated Lease Is Amazing

Leases are common, effective means of securing a vehicle for one’s own use. They’re especially common in Australia, seeing as most people can’t afford the cost of purchasing a vehicle outright with cash.

The Novated Lease Stratton Finance, believe it or not, stretches lessees’ money out longer than what is normally available, without a novated lease. How does this work?

The Juice Behind The Novated Lease

When concerning a novated lease, the employee doesn’t pick up financial responsibility – the employer does. However, payments are taken directly from employees by their employers such as Mazda Finance Stratton and submitted to the financial institution responsible for the deal – in other words, the financier.

Why doesn’t the employee cut the employer out? Sounds like a lot of unnecessary hassle, right? WRONG!

The Australian government has recognized that if legitimate employers serve as intermediaries between employees and financiers in novated lease agreements, there’s solid proof that employees are actually using such money to acquire vehicles.

Australian Tax Office chooses to support the tax-free stimulation of the Australian economy – that’s the basis for the novated lease agreement.

Employees often bond more tightly with employers when they’re granted approval for a Car Loan Stratton Finance as they might not be able to go out and lease vehicles on their own. Everybody wins – especially the employer; it loses virtually nothing!

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