LEASEPLAN NOVATED LEASES

AGENDA  What is a novated lease  Why Novate?  Why Novate with LeasePlan?  Products and Services  Fringe Benefits Tax (FBT)  LeasePlan Online  Motor Vehicle Reports  SalaryPlan  Customer Service and Support PAGE 2

WHAT IS A NOVATED VEHICLE LEASE?  A three way agreement – LeasePlan, Employee and Employer  Employee packages the finance and running costs  Employer agrees to salary deduction and pay LeasePlan  LeasePlan provides vehicle finance and fleet management services

WHY NOVATE?  Reduce taxable income  GST free vehicle purchase and vehicle running costs  Your choice of vehicle (new or used* or existing*)  Lease one or more vehicles**  The potential to build equity for tax free profit  Convenience – set and forget fortnightly budget  * Used vehicles can be financed - age cannot exceed 4 years or 100,000km at start of lease and 7 years 200,000km at end of lease  ** Subject to employer requirements PAGE 4

WHY NOVATE WITH LEASEPLAN?  Customer service – support at every step Experts to help you  Novated Lease consultants will call you to provide assistance  Account Manager on-site fortnighly meetings with UNSW employees  Volume buying discounts  LeasePlan Online – real time quotes  Monthly Motor Vehicle Reports (MVR) PAGE 5

WHY NOVATE WITH LEASEPLAN?  Professional maintenance control  Residual value flexibility (novated finance lease)  No Hidden Costs:  No establishment fees  No start-up document fees  No upselling of unnecessary items e.g. warranties, tinting  Fully Open and total disclosure of every element of the novated lease monthly payment:  residual value  interest rate PAGE 6

PRODUCTS & SERVICES  Choice of Novated Finance Lease Product CarPlan Standard or Redundancy Protection Feature  Vehicle finance – competitive interest rates Running Costs Included  Fuel (Caltex fuel card supplied)  Maintenance/Servicing  Registration and renewals  Replacement Tyres  LeasePlan Total Cover comprehensive insurance  Roadside Assistance (if applicable) PAGE 7

FRINGE BENEFITS TAX (FBT)  Fringe Benefits Tax (FBT) is applied to vehicles that are packaged  From 1 April 2014, all leases subject to a flat 20% FBT rate regardless of distance travelled  Eliminate FBT using the Employee Contribution Method (ECM)  post tax payment PAGE 8

EMPLOYEE CONTRIBUTION METHOD (ECM)  A post-tax contribution is made towards the running cost of your novated lease to eliminate the FBT liability  Makes novated leasing more attractive  Increases the salary packaging advantage and improves the tax- effectiveness  LeasePlan Online quoting tools will calculate the ECM showing the impact on your disposable income  The package cost needs to be split into two parts in the payroll:  Pre-tax component:becomes the tax free cost of the vehicle  Post tax component:eliminates/reduces the FBT Liability PAGE 9

LEASEPLAN ONLINE   UNSW customer code:  Employee Driver Registration  Create and compare multiple quotes  Complete credit application and vehicle order  Feel free to contact LeasePlan at any time: PAGE 10

LEASEPLAN ONLINE – SALARY ANALYSIS  Novated lease quotation – salary package analysis  Indicates tax effectiveness of novated lease  ECM (pre-tax & post tax payments) vs 100% pre-tax PAGE 11

MOTOR VEHICLE REPORTS (MVR)  Issued monthly  Budgeted costs versus actual expenses  Opportunity to adjust if required  MVR history available at LeasePlan Online PAGE 12

SALARYPLAN’S ROLE  SalaryPlan is your salary packaging administrator  They will manage your salary deductions for your LeasePlan novated lease  SalaryPlan are their to support you with any queries you have in regards to the deductions and FBT on your novated lease.  SalaryPlan has a dedicated team of specialists locally, available to assist employees with any queries relating to salary packaging of their novated lease:  Phone:  PAGE 13

CUSTOMER SERVICE & SUPPORT  LeasePlan Online customer code: Novated Driver section (supplier finders) Access news, tips, FAQ’s to make the most of your novated lease  User Guides and CarPolicy (access via UNSW website:  Novated Leasing Consultants:  Phone:   Visit  Periodical newsletters / Monthly Motor Vehicle Reports PAGE 14

DISCLAIMER This presentation should be considered guidance only. As personal circumstances vary LeasePlan recommend you seek your own independent financial / taxation advice regarding novated leasing. PAGE 15

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