Changes in Federal Budget 2011

Novated leases entered into after 10th May 2011 if using the FBT Statutory Formula the concessional FBT rates will be 20% as of April 2014 for all kilometre brackets.

The new FBT rates will be as follows: -

Distance Travelled during FBT year(01/04 -31/03)	Existing Novated Leases	From 10/05/2011	From 01/04/2012	From 01/04/2013	From 01/04/2014
Less than 14999 km	26%	20%	20%	20%	20%
15000 -24999 km	20%	20%	20%	20%	20%
25000 � 39999 km	11%	14%	17%	20%	20%
40000 km +	7%	10%	13%	17%	20%

NOTE: There are NO changes to existing novated leases entered into prior to May 10th (7.30pm) 2011.

The FBT Operating Cost method remains unchanged and may be a more beneficial method of FBT compliance for salary packaging your vehicle. This can be reviewed with your Boost Salary consultant when discussing your requirements.

The Government changes will ensure that employees can still obtain significant benefits through the novated lease program and salary packaging of their vehicle. It ensures a simpler method of FBT reporting and administration for the employees and allows more individuals to take advantage of a Boost novated lease.

Opportunities now exist for employees to salary package more than one vehicle; and not have to drive excessive kilometres just to obtain a salary packaging benefit.

Questions:-

Do the changes impact my current novated lease?
No, there is no change or impact to existing novated lease contracts, or any signed before 7.30pm on 10/05/2011.

Will the changes mean the novated lease is not as cost effective for me?
It will not impact your existing lease and any new lease will be reviewed to optimise the salary packaging of the car for you. It may actually be more cost effective for you dependant on your circumstances, you should talk to our Consultants.

Is novated leasing still cost effective?
Yes, absolutely and will continue to be for many individual employees. Subject to your salary package and vehicle requirements we can structure the lease to be very cost effective for you and maximise the benefits available.

Do I have to keep a logbook now?
No, but it may be a viable option for you in the future when you take on a new novated lease, dependant on your kilometre and business usage.

Any enquires contact us: 02 8875 7955 or at customerservice@boostsalary.com.au
Boost Salary Packaging Pty Ltd
Level 9, 123, Epping Road,
North Ryde
NSW 2113
www.boostsalary.com.au