Mortgage Providers Pty Ltd, also known as Mortgage Broker Sydney, is an Australian mortgage and finance company offering mortgage broking services to help clients secure funding for a wide variety of needs.

A novated lease is a three-party agreement involving an employee, their employer, and a leasing company. The employee leases a vehicle from the leasing company, and the employer agrees to make the lease payments on the employee’s behalf during their employment. These payments are made by deducting funds from the employee’s pre-tax income, making it a very tax-efficient method for purchasing a vehicle.

If the lease agreement is terminated or the employee leaves that employer, the responsibility for the lease repayments reverts to the employee, and the employer is no longer obligated under the novation agreement. This financial arrangement allows employees to acquire a car in a tax-effective way through their salary package. It’s a three-way agreement between the employee, the employer, and a finance company.

Employees have the option to include all or a portion of the vehicle’s running costs into a fixed monthly payment that is deducted from their salary. This makes a Novated Lease straightforward and easy for both employers and employees to manage, with the employer initially committed to making the Novated Lease repayments. Additionally, the employer may cover all vehicle-related running expenses.

A novated lease is a salary sacrifice strategy for purchasing and operating a vehicle, whether new or used. This arrangement can be suitable for drivers with varying mileage and salary levels, and the lease term can range from 1 to 5 years.