FBT: Associate Car Leases

Paul explores the advantages of associate car leases? 

Date published: 21 April 2022

________________________________

TRANSCRIPT

Associate leases, an issue we should look at when we're considering salary sacrificing cars is not just turning our old vision on its head where we're thinking about salary sacrificing Paul's car, the primary breadwinner's car, but instead thinking about salary sacrificing Barbara's car, the primary care givers car.

We should go step further because the leasing arrangements on those car leases, we're talking about a likely to be novated leases and novated leases of really good last century thinking and associate lease will do everything that innovative lease will do plus more.

One of the cool things with associate leases is it might allow me to move some of my salary effectively across to Barbara that is next to Barbara rather than me, and it might be we get to double dip the running costs. And what I mean by that is Barbara gets a tax deduction for paying the running costs on the car, and not only does she get an 8-1 deduction for the running costs on the car, Hockridge advisory gets a reduction in taxable value of the car for FBT purposes. 

That's what I mean by double dipping their running costs, and the taxman has signed off on this a number of times. And there are a number of associate models, particularly three associate models. So we could talk about those another day. They lend themselves to some slides.