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What is Associate Leasing?

An Associate Lease is a way of saving tax by Salary Packaging your running expenses on your existing vehicle. Many of your car’s expenses can be claimed under an Associate Lease, including your fuel and servicing costs, rego, insurance and even tyres and car detailing.

An Associate Lease is slightly different to a Novated Lease, the difference being that the Financier is replaced with an Associate. The Associate might be your husband or wife, partner, child, parent or anyone who has an ‘association’ with you. An Associate Lease does not require any finance or banks to be involved and there is no age restriction on the vehicle.

Associate Leasing is ideal if you aren’t looking to purchase a new car and are happy with your current car but would like to take advantage of the tax savings involved with Salary Packaging a lease.


What are the benefits of an Associate Lease?

Normally you pay for all of your car expenses with your income after tax has been taken out from your employer. With an Associate Lease, you save tax by paying for these expenses with a combination of your before and after tax pay through Salary Packaging. This reduces your taxable income, so you pay less tax.

  • You don’t need a new car.
  • You save money because your vehicle costs are paid from a portion of your pre-tax income.
  • You aren’t locked in to any lease contracts.
  • There are flexible lease terms.
  • The vehicle is yours to use 100% of the time and there are no restrictions on who can drive it (except for your specific insurance policy).


How does an Associate Lease work?

Salary Packaging means you can pay certain expenses out of your salary before you pay tax. With an Associate Lease, a portion of your associated running costs are deducted from your pay before tax. The ability to Salary Package vehicle expenses is a benefit that may be offered by employers to their staff.


Choosing an Associate?

An Associate can be anyone over the age of 18 and can obtain an ABN. Associates include people and entities closely associated with you, such as relatives, partner, friend, colleagues or closely connected companies or trusts.


The Simple Steps to arranging an Associate Lease

Arranging to salary package a vehicle via an Associate Lease is not difficult – just follow these simple steps:

  1. We ask you some questions to let us assess if an Associate Lease is right for you and provide you with a quote to show you the estimated tax savings.
  2. Over the phone, we gather the necessary information from you to begin the process.
  3. We then email a questionnaire to you and your associate – we can assist you to complete this.
  4. Once we have received the completed questionnaire back from you, we can assist with applying for an ABN for your associate (if required).
  5. At this point, administration documents will be drawn up and sent to you.
  6. Once you have signed these and returned them to us for processing.
  7. Your employer provides final authorisation for packaging to commence.
  8. At this stage, you are sent an email outlining your tax savings and which payroll date your packaging will begin.

For convenience, a Fuel card as part of your Salary Packaging will be ordered at this time. Our friendly team can assist you in all areas involved in setting up your Associate Lease, including obtaining an ABN and answering any questions you or your Associate may have.


Additional Information

Under a FAA Associate Lease, all operating costs for the vehicle are included as part of your Salary Package. Operating costs that can be packaged include:

  • Fuel and Oil
  • Services and Maintenance
  • Registration
  • Tyres
  • Comprehensive Insurance
  • Excess on Insurance
  • Other types of Insurance relevant to the vehicle (eg: Tyre & Rim, Gap and more)
  • Roadside Assistance
  • Paint Protection
  • Rust Proofing (non-removable)
  • Window Tinting
  • Car Washing and Detailing
  • Protection for Fabric Interior (non-removable)
  • Damages or Repairs

Through FAA’s advice, we can ensure your options are explained to you so that you can make an informed decision that truly benefits your personal situation.


Fuel Cards

Being able to use a fuel card is another great benefit of an Associate Lease. To fill up with a Fuel Card, simply present your card at participating service stations to quickly and easily purchase fuel. These cards are widely accepted and are an easy and quick way to purchase fuel. Depending on your Administrator, you may also be able to pay for your maintenance and services at participating organisations, and even tyres. FAA provides a Fuel card(s) which is used as a debit card at all fuel stations, where a Fuel card is accepted.


Budget Variations

Your package provides a budget estimate for the total costs associated with running your vehicle for the kilometres you have nominated. If the kilometres travelled vary significantly, we can adjust the budget to meet the changed circumstances. FAA calculates the budgeted costs of servicing, tyres and fuel from your nominated estimated kilometres. Realistic estimated kilometres are an important factor in determining your package costs. Should your nominated kilometres change throughout the term of your Associate Lease, please contact FAA so that your budgeted amounts for your expenses can be amended.


Associate Lease (Employee)

Particulars Jane (Packaging) Jack (Not Packaging)
Annual Salary $50,000.00 $50,000.00
Less Salary Package (incl. Fees) ‐$6,246.11
Taxable Income $43,753.89 $50,000.00
Tax & Medicare Payable $6,641.77 $8,796.67
Vehicle Cost Not Packaged $3,000.00 $9,465.56
Net Disposable Income (annum) $34,112.13 $31,737.77
Net Disposable Income (weekly) $656.00 $610.34
Net Advantage (annum) $2,027.96
Net Advantage (weekly) $38.99


Associate Lease (Associate)

Particulars Jane (Packaging) Jack (Not Packaging)
Annual Salary $30,000.00 $30,000.00
Plus Assoc Lease Pay’t Income $4,386.66
Less Depreciation ‐$2,563.48
Taxable Income (annum) $31,823.18 $30,000.00
Taxable Income (weekly) $611.98 $576.92
Income Tax Payable $2,588.21 $2,241.81
Net Tax Expense (annum) $346.40
Net Tax Expense (weekly) $6.66


Find out more about a Novated Lease.

How can we help you?

Contact us today to organise an initial appointment with a Salary Packaging Specialist.
The specialist can provide a free financial assessment and evaluate the impact on your individual circumstances.
We provide a holistic service and can assist you in all areas of your financial life.

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