Why would I do an eBike Novated Lease?

Your Employer pays your eBike Lease Payments and running expenses with Pre-Tax dollars (usually 34.5% Tax Saving)

What model of Lease is used?

FAA’s eBike Fully Maintained Associate Lease Model, because it’s flexible with low cost to Salary Package your eBike with, or without finance.

What are the benefits of Salary Packaging an eBike

FAA eBike Leasing typically out performs all other leasing models for monies saved and flexibility.

FMAL leasing is ideal if you are looking to purchase a new or used eBike or are happy with your current eBike and would like

to take advantage of the tax savings involved with salary packaging an eBike Lease.

 

 

  • It’s ‘Turnkey’ and simple
  • You can choose any eBike
  • You can Salary Package any number of NEW or USED eBikes
  • All expenses are paid with Pre-Tax monies (min 34.5% discount)
  • Can have no upfront cost
  • Budgeted expenses are all-inclusive within the fixed repayment
  • You have unrestricted use and who can ride it
  • Even with low km’s, you will achieve considerable tax savings
Overview - how does your eBike FMAL Lease actually work?
  1. Complete the quote online which sets out/up all variables such as the eBike cost and running expenses for your eBike Lease
  2. Proceed to Implement/checkout when happy with Tax Benefit quote
  3. Setup FAA as your Sal Pac Admin for Employer (If not previously done)
  4. Establish your FAA Salary Packaging account
  5. Download the FAA App
  6. Find an Associate (Spouse, Partner, family member etc.)
  7. Associate obtains an ABN with help of the FAA portal or App
  8. Now choose your eBike, or you can decide to Lease your existing eBike
  9. Substantiation is required to identify value for existing eBike
  10. The Associate purchases the eBike – or you can package your Existing eBike
  11. All required documentation will be eSign and automatically generated for:
  • The FMAL eBike Lease electronic document
  • Declaration that you will comply with the ATO terms (see below)
  • Employer requirement to make deductions from your pay into your FAA Salary Packaging Trust Acc
  • Employee Participation Agreement
  • Any policy documents specified by your Employer

(Note if a Financer for the Associate requires an ink signature, print, sign and scan of this will be the only non-digital step)

 

  1. Pay deductions will commence from your Pre-Tax salary and forwarded on to your Associate
  2. Organise collecting your new eBike if not packaging your existing eBike
  3. Get your bum in the saddle
  4. As expenses arise:
  • Your Associate will pay or claim reimbursement for these expenses from their Associate FAA Salary Packaging Trust Acc
  1. Log onto your FAA portal/App to view all transactions or reporting you would like to see
  2. Increase or reduce your payroll deductions to in alignment with your actual cost via your App
  3. All necessary reporting will be provided to your Employer
Who can be the Associate?
  • The Associate might be your husband or wife, partner, child, parent or another family member that you trust
  • Your Associate must be able to hold an ABN
  • This person enters into an agreement with your Employer where they agree to lease your eBike
Who owns the eBike with a FMAL Lease?
  • The Associate, but terms of ownership at the end of lease can be agreed upon with the Associate
  • For the term of the FMAL Lease you essentially lease/hire the eBike from your Associate
Any conditions on use?

Use your eBike to commute to work at times throughout the year and personal use that is minor, infrequent and irregular

What can be packaged?
  • eBike or eBike package (Bike and bling if part of the purchase package)
  • Service and Maintenance
  • Replacements (eg: Tyres, lights etc from original package)
  • Damages or Repairs (Conditions Apply – like for like etc)
  • Comprehensive Insurance and excess payments
  • Other types of Insurance (eg: Tyre & Rim, Gap and more)
  • Roadside Assistance
  • Washing and Detailing
  • Extended Warranty
  • Excess on Insurance
What can NOT be packaged?
  • After market add-on’s
  • Car bike racks
  • Upgrades
  • Clothing
  • Additional batteries (Range extenders not in original pack)
  • Lattes
End of FMAL options:
  1. Lease ends and Lease another new eBike
  • Lease ceases – FAA look after this process
  • Trade or sell your eBike privately however you chose to
  • Any surplus funds from the sale are yours to direct into your personal bank account
  • All funds in your account remain there for the new Lease

 

  1. Stop Leasing this eBike and sell the eBike
  • Lease ceases – FAA look after this process
  • Associate sells the eBike privately however they chose to
  • Any surplus funds from the sale are the Associates to direct into their personal bank account
  • The funds in the Associates Salary Packaging account are theirs to keep

 

  1. Release the eBike – seamless transition
  • A new Lease is put in place
  • As the new refinance amount is lower, your new lease deductions will be much lower
  • The funds in the Associates Salary Packaging account are theirs to keep

 

  1. Stop Leasing and keep the eBike
  • Cease leasing,
  • The funds in the Associates Salary Packaging account are theirs to keep
  • Registration is in your Associates name, so nothing else changes
NOTE:

The rider is liable for fines, damage (Just like any lease) and compliance with the use declaration to the ATO.  No usage log is required by any party, though the Associate must substantiate all claims (Receipts uploaded via App)

ATO Terms:

The residual benefit that arises from an employee’s use of an e-bike will be an exempt benefit under subsection 47(6) if the private use of the e-bike is restricted to:

  • travel to and from work
  • use that is incidental to travel in the course of performing employment-related duties, and
  • non-work-related use that is minor, infrequent and irregular.