Twinny2014

Hi, I move to Brisbane in February '17. I require a vehicle for work and have been given a good monthly allowance of 1350 dollars.

I want as nice and as new a car as possible.

I've had a look at novated leases which looks like a good option as there are tax benefits.

Any advice?

skinnygeorge

Do not know about novated leases but colleagues have been given $20,000 per annum for a car and its cost them dearly. Is the car for visiting customers sites and if so I`d try and get an estimate of annual kilometres. Road tolls add up very quickly and depending on where you are based you may not be able to avoid some of them.If its to use daily for visits $1000 a month once you add Rego/CPC, Your own insurance and servicing vanishes leaving $350 max on a loan repayment. You can get 7% to 8% loans on cars under 7 years old. Could work out ok for you just find all the facts. And invest in a car with resale value.

Twinny2014

Surely it isn't that ominous? 15,000 a year can't be a noose around your neck. Fuel, road tolls etc. Would all be covered as expenses by my employer as my job involves being out on the road.

What is Rego / CPC? Is that road tax / government charges?

skinnygeorge

If all the other expenses are covered then you're laughing, as I said it could be OK. The company I work for payed that allowance and everything came out of it. My supervisor bought a new car, possibly not to wise in hindsight but he soon found himself out of pocket. If fuel/tolls etc are covered then you will be ok. Cpc/ rego is an annual charge like road tax but includes compulsory 3rd party insurance. Obviously varies depending on the car $500 - $800 per year approx. then your comp insurance on top. Hopefully you would get a fuel card. Fuel varies between $1 and $1.50 a litre depending on which way the wind blows. Of course you would have Fringe benefit tax on your private use to. My company vehicle is a tool of trade vehicle and there fore no private use is available to me. Though you can claim back all the expenses attached to its upkeep pretty much each you at tax time. Hope it works out.