All posts tagged: Vehicle

Save hundred’s in Taxation

February 1, 2018 JBS Salary Packaging Salary Packaging No comments

Times are tough and if there was a way we can save money on the amount of tax we pay, life would be a lot easier.

There are no tricks; the government allows employers to provide salary packaging for their employees. In return the employees promote their employer as an employer of choice.

Salary packaging allows you to pay some of your existing costs like, mobile phones, portable devices, motor vehicles, insurances etc, before you pay any tax on your income. Allowing you the benefit of having more money in your pocket each pay.

Last week we helped a JBS team member to Salary Package his partner’s motor vehicle and running costs, plus his mobile phone and a laptop that he just purchased. This gave him an effective pay rise of $3,815.00 per year.

Salary packaging is simply increasing your take home pay by salary packaging items you would normally pay for. These can include item like mobile phones, internet, laptops, smart devices, personal insurance, tools of trade, motor vehicle payments and therefore reduces the amount of tax that is paid on your income. (The savings vary depending on your expenses and your income).

Salary Packaging will give you extra $$$ each pay which will assist your family with everyday living and your employer will be an employer of choice.

Click here to watch a short video on Salary Packaging and how this could benefit you.

Contact JBS Salary Packaging to get your personal tailored Salary Package Report which shows you how salary packaging can save you $000’s in taxation and give you more money in your pocket.

Novated vs Associate Lease?

November 6, 2017 JBS Salary Packaging Salary Packaging, Uncategorized No comments

We often get clients ask us which type of lease is better, a Novated Lease or an Associate Lease? The simple answer to that question is “it depends”. It depends on your financial and personal situation.

A perfect example just occurred recently when I had to run through this exercise with a potential client. He was interested in both an associate lease and Novated Lease, but more importantly he wanted to know which one would be more beneficial to him. After running through both options with him he was amazed at how a model such as an associate lease will suit him better compared to a novated lease.

The easiest way to explain the differences between an associate lease and novated lease is as follows;

An associate lease is an agreement which is taken out between the employee and their associate with the approval of the Employer (Your Partner or family members over the age of 18).

The Associate rents their vehicle to the person who is salary packaging. The objective is to get the benefits of Salary Packaging and the associate get the opportunity to write off the vehicle against their tax by claiming the depreciation of the vehicle and if there is a loan they also get to claim the interest. (Associate Lease works well if the Associate earns under $35,000 per year due to the tax benefits that are available.) We recommend that you check with your accountant before proceeding.

The way I had it explained to me is:

– An Associate Lease essentially means you are your own bank. (You finance the vehicle through your own assets. I.e. redraw on your home loan), or you may already own the vehicle or pay cash for it.

– A Novated lease on the other hand is financed via a third party (bank or financial institution).

So if you have the facility to finance your own vehicle in your associates name then an associate lease will be the right way to go. If this cannot be achieved then the Novation is better for you.

If you have a vehicle without a loan, then the Associate may possibly be better option for you. If you plan on buying a new car then in most cases the Novated Lease will be better for you. Both options could be beneficial for you depending on your personal circumstances. At JBS Salary Packaging, we will provide you with the best possible outcome that puts more money in your pocket that is for sure.

Benefits for the employer

It makes sense that all employers take advantage of Salary Packaging as they too benefit as the GST paid by the employees is passed to them in a way of the employer claiming this against their BAS Statements, assisting in reducing the employer’s tax liability as well.

Remember to always discuss your options with one of the team at JBS Salary Packaging to ensure it’s the right decision for you and seek professional advice!

Importance of Comprehensive Insurance

March 1, 2017 JBS Salary Packaging Cars No comments

When packaging a car, you’ll automatically be given full comprehensive motor vehicle insurance, but have you ever questioned why?

All banks who lend you money as a Novated Lease require you to have comprehensive insurance. The main reason is that should you have an accident or your car is vandalised and the vehicle is written off or if your car gets stolen, the financier is assured of receiving the majority, if not all of the funds, back that they have lent you.

The top level of insurance can protect you from the significant costs and inconveniences should an accident occur. However you will need to be careful when considering what kind of insurance policy is best for you. There are numerous providers with a range of different policies, not all of them provide adequate cover.

Policy Types

The different types of policies to choose from are:

– Compulsory Third Party (CTP) insurance is required in Australia and is incorporated into your Vehicle Registration only covers for personal injuries caused due to an accident involving your vehicle. It does not cover for any damage to the vehicle.

– Third Party Property covers for damage to other people’s property and legal costs, but does not cover damage to your own vehicle.

– Third Party Fire and Theft cover for damage to other people’s property and legal costs, but does not cover damage to your own vehicle in addition to covering your vehicle for, as it states, fire and theft.

– Comprehensive policies cover for the repair or replacement of your vehicle for events including theft, collision, fire, malicious damage and weather-related damage, such as hail. This is the required level if you have a novated lease for your car.

Useful tips when looking for the right car insurance policy:

– Vehicle Details – ensure the vehicle details on the policy are identical to the vehicle you are insuring! Pay close attention to any additional or standard accessories the vehicle came with when purchased i.e. side skirts, full size spare wheel, tow bar kit, reversing camera, bull bar, leather interior, premium sound, etc.

– Storage – be 100% clear on how the vehicle is stored overnight or during the day (i.e. garaged, carport, under cover in secure parking, in driveway, on the street etc.) as it is an important factor to the insurers consideration of your risk and premium loading/discount.

– Repairer Options– Choice of repairer means that you can have the convenience of choosing the repairer you want, so you have confidence in the quality of the repair work. The repairer may also be closer to your home or work. Some insurers will have their own approved repairers that they use and can guarantee the works and they try to have a number of repairers so that there is one close to you. In addition to either option of repairers, some insurers will require your car to be taken to an assessment center for their own mechanics to assess the damage and approve a level of funds for the repairs. All these should have a bearing on your choice of insurer.

– Excess Levels – The excess is the amount you have to pay at claim time. A lower excess amount, generally equates to a high premium and vice versa – higher excess results in a lower ongoing premium. You must choose if you are comfortable paying more at claim, with the idea that you don’t believe you will need to claim (of course, you are an excellent driver), or if you pay a lower excess at claim as you might be prone to an accident or two.

– Claims Service/ Process – Although no one actually wants to believe that they will need to claim, there may be an instance where you need to and you want to make sure that it’s an easy, straight forward process. You can find a heap of reviews on the internet of people’s experiences with insurance companies and you should read a few before settling on your insurer. You could also use a broker, as it removes the hassle and headaches that come with car insurance claims, and ensures that if there is a problem with your claim you have insurance professionals/ experts working for you to get the matter resolved.

If you follow these tips they can help you keep your premiums reasonable for the cover the fits your requirements.

JBS Salary Packaging along with AustBrokers Countrywide as its Insurance specialists, researches the insurance industry for the best possible deal to meet your needs and requirements.

At JBS Salary Packaging, we understand the importance of protecting your 2nd most valuable asset.

If you would like to review any of your motor vehicle insurances, please contact JBS Salary Packaging on 03 8677 0677 or email us here.

Preparing your car for holiday driving

December 1, 2016 JBS Salary Packaging Cars No comments

Christmas is always a busy time of the year and many of us enjoy a holiday even if only for a weekend. There are some important checks that you should do before heading off on your break to ensure the safety of your family.

car – Check under the bonnet and top up everything as needed: power steering fluid, windscreen washer fluid, engine oil, transmission fluid, brake fluid, radiator coolant, etc. If you don’t know how to do this, might be best to drop past a service centre for a quick fill
– Make sure your windscreen wiper blades work well, leaving no streaks on the glass. Replace them if unsure. You can buy windscreen wiper at any automotive store and they will have a manual to tell you which ones to purchase for your particular car’s make and model
– Check on the car battery for corrosion, and cleanliness
– Check that all lights are all working – dashboard, turn signals, headlamps, high beams, hazard lights, etc
– If towing, check the electrical connectors and make sure that all lights and brakes on the vehicle that you will be towing are working well
– Make sure all of your tyres are wearing well and that they are pumped up to the manufacturer’s tyre pressure level. This includes any spare tyres
– If you have child seats, check that they secured properly and cleaned. Seats may wiggle lose over time so it’s always a good idea to check them
– Get your car serviced and checked by an authorised service centre a few weeks before you head off. It’s always best to get a professionals opinion and your car is no different
– Many forget but wash your car before heading off. This will ensure all windows are clean and clear giving you the best visibility for driving
– Ensure you have emergency gear in your car such as road reflectors, torches and water…just in case

We would love to see your holiday snaps, especially with your packaged car. Let’s see how far our cars travel this year.

End Of An Era

November 7, 2016 JBS Salary Packaging Cars No comments

In October, we saw the very last Australian-made Ford roll off the assembly line at the Broadmeadows plant. What a sombre day for workers but it should also be for all Australians!

The Geelong factory opened in 1925, building both engines and vehicles but changed to engine and metal stamping in 1959 when the Broadmeadows plant was opened. In 1994, the NSW plant closed seeing the production of the locally made Ford Capri cease. In 2007, Ford announced that they would be closing their Geelong plant in 2010, however later cancelled the decision and instead upgraded the plant so that the engines produced would meet strict European standards.

In 2013, Ford again announced it would close its Australian manufacturing operations in 2016 and this time they meant it, after suffering a $141 million loss over the previous financial year. This would also mean the loss of jobs for around 1,200 workers.

In a nice gesture to both Geelong and Broadmeadows communities, the official homes of Ford, they will be auctioning the last saleable cars built at the plants with the proceeds being donated to local schools in both areas. The final vehicles built will not be sold but rather will be put on display.

car Dick Johnson, three-time Bathhurst winner and five-time Australian Touring Car champion has expressed his disappointment at the closure of Ford, and other Australian car manufacturers. Talking at Bathurst this year he was quoted as saying “For today to be qualifying for the Bathurst 1000, and to be the last Falcon to roll off the production line, it’s a date we won’t forget that’s for sure, albeit very sad.”

While there is $66 million provided in support for sacked workers, many are still struggling to find alternative employment. This is due to the need for their very specific skill sets in metal casting being almost redundant given that the majority of the automotive industry in Australia is closing, with Holden and Toyota also closing down vehicle production in 2017.

So it’s anyone’s guess what will happen from here in relation to car prices. Some are saying that with no manufacturing in Australia the prices will increase with the expense of importing and others believe that it will open the Australian market up to further competition and our exchange rate will also play into it. Either way, it’s sad to think that our kids wont have the option to buy an Australian built car but rather might be zipping round in a cheap import.

Car Review | Commodore V8 – SSV – Redline

March 16, 2016 JBS Salary Packaging Car reviews, Cars, Salary Packaging No comments

Last of an Australian Icon – Commodore V8 – SSV – Redline!

This is your last chance to drive or buy a rear wheel drive Aussie V8 with Ford ceasing production later this year and Holden at the end of 2017!

Holden has left the best V8 fittingly to their last version of the Commodore V8! The power output, standard safety features and creature comforts sets a new bench mark for Australian built vehicles.

If you are interested in purchasing a new vehicle please contact our team today.

I hope you enjoy the video as much as I enjoyed making it for you all to watch.

Thank you for watching ; and happy and safe motoring to you all

Learner Drivers

February 3, 2016 JBS Salary Packaging Cars, Salary Packaging No comments

I have children who are at various levels of driving experience and knowledge but more importantly very different attitudes towards driving on the road.

My son, who has just passed his learners permit, thought it was easy. We jumped in the car and went through the basics; accelerator to make it go, the brake to stop, the indicators to turn. Right, we are ready to go. His first words were “where does the key go?”. With that sorted, I said “lets go” then all of a sudden the motor starts screaming. He wondered why it wasn’t going as he just assumed it was an automatic. I realised then that there is so much to teach a learner driver and it is up to us, as full licence drivers to teach them if we want them to be competent and safe drivers.

Five Tips to Driving you might want to impart on your learner driver …

– Always do head checks and mirror checks to know where other vehicles are around you. While you might not be moving into another lane or turning, it’s good to know your surroundings in case you have to take evasive actions in the event of an accident or trying to avoid an accident.

– While you might not know it, tyre pressure plays a major part in your driving. It can make your car pull to one side, drive slower and even cost you more in additional fuel consumption. Tyre pressure is not determined by the type or size of the tyre but rather the vehicles load or driving application. You can find the pressure details in the manufacturers tyre placard or the vehicles owner manual. Also, you should only ever check your tyre pressure when the tyre is cold.

– Some road rules are really unusual so try to learn as much about driving and the road rules as possible. Did you know that you can be fined $87 for parking over the footpath in a driveway (even your own driveway). In Victoria, you can be fined for leaving your car with the window down more than 2 centimetres – but Queensland gets 5 centimetres.
– Driving, especially while learning, shouldn’t be a fashion statement. Wearing the wrong shoes when driving can make it harder to learn and can even be dangerous. You should consider wearing flat soled shoes to allow you to better feel how the car responds to what you’re doing.

– If you’re doing your driving test, a quick tip that someone told me before I went for mine was to ever-so-slightly adjust your rear mirror higher just so you have to tip your head up slightly to see in it, rather then just moving your eyes. It ensures that the tester can see that you are doing proper and regular mirror checks.

There was an article recently released from the Roads Minister where he suggested the government were looking at rewarding young Victorian driver’s for safe driving. Those young drivers could be rewarded with a free three year licence worth $76 if they completed both their red and green probationary periods with no traffic offences or demerit points.There are also a number of free and government funded courses available for young drivers to help them practice their skills, gain experience and become safer drivers on our roads. Check out Vic Roads for more information.

Contact JBSSP if you have any questions or would like more information about learner driver courses.

My lease is about to end

January 15, 2016 JBS Salary Packaging Salary Packaging No comments

What do I do? Don’t worry! JBS Salary Packaging (JBSSP) can help.

Generally there are three options at the of a lease:
1.    Pay out the residual and you own the vehicle outright
2.    Refinance the residual
3.    Trade in the vehicle and get a brand new one Car Lease

When you commenced your lease, you would have chosen a residual – 15%, 20%, 25%, etc. When your lease term ends, you have the option to pay out the rest of the debt to then own the vehicle. For example; You buy a $60,000 car on a lease with a 20% residual so at the end of the term, if you wanted to pay out the residual, you need to pay a lump sum of $12,000.

Alternatively, you could take out a further lease for a couple of years and package the remaining $12,000. This means that you keep your car and things really remain unchanged other than a bit of paperwork to get it organised.

Or you can start looking for your next shiny new addition to your family. You trade in the vehicle (with the idea that the trade in would cover your residual) and you start a new lease with a new vehicle. This seems to be the most attractive offer to many as everyone loves a new car and if you’re used to salary packaging, you are happy for it to continue.

JBSSP can help by discussing the options and outcomes with you so you can make an informed decision on the best option for you and your family. Why not give us a call to find out your options.