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James Millar
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Ok I think it’s a bit simpler than all of that.

A novated lease is a tri party lease contract between lessor, lessee and employer. They are specifically designed for salary packaging and tax effectiveness. The finance companies are fully aware that the vehicles are being used on a salary packaged basis which does not necessary mean they are commercial vehicles because salary packaging cars for FBT under the FBT statutory fraction method does not rely on business use log book numbers. Most novated leases will generally allow transfer to a new employer including a company that you own / part own. The novated lease may not give the finance company the right to terminate provided obligations are met – these contacts are made with the understanding employees often move and re-novate to new employer. They are pre vetted on that basis.

So there is a good chance you can transfer the novated lease to your new company. – but you will need to check the contract.

And yes you can generally still claim interest on the personal loan because you will “on lend” the personal monies to your company.

Speak with an accountant before you do anything. Good luck. Scaff can be quite lucrative.

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