By apply or having a novated lease does not generally impact you credit rating other than a record of credit inquiry will be recorded when you apply for one. However, failing to make payments can still negatively affect your credit score.
While GST applies to novated leases, employees benefit by not having to pay GST on the vehicle and most associated costs, as the employer can claim an input tax credit, making the overall package more cost-effective.
Use online calculators or consult a tax advisor. Tax savings depend on your salary, vehicle costs, and lease terms.
Your salary is reduced by the lease payment amount and the budgeted running cost before tax, reducing your taxable income.
Lease payments and running costs are paid from a combination of pre and post tax salary as a result it can lower the taxable income, offering potential tax benefits. Exact savings depend on income, lease terms, and vehicle costs.