Remunerator News

Jun 21 2018

Why AASB16 is relevant to your company

Q: How do you reduce your company’s financial liability, increase employee retention AND offer a great benefits program?

A: Novated Leasing.

What is AASB16 and why do you need to know?

AASB16 is a new accounting standard that means leases and loans that are currently not required to be on-balance sheet, including operating leases or company cars, must be declared as of January 1st, 2019.

Ultimately this means that a company will have more financial liability on paper with operating leases. Novated leasing however, will become the only lease type that does not require financial declaration from a company perspective.

The benefits of Remunerator’s Salary Packaging and Novated Leasing program include:

  • Reduce the company’s financial liability on paper
  • No cost to the company to provide Remunerator’s Salary Packaging and Novated Leasing
  • Remunerator’s specialists manage your program with minimal administration required from the company
  • Personalised service

Benefits of novated leasing to the employee include:

  • Purchasing and running their car from pre-tax salary
  • Savings on GST on both the car and running costs as well as the purchase price of the car
  • Individual face to face sessions between your employees and our leasing specialists
  • Employees have the choice of any car
  • Easy end of lease management options

By offering a novated leasing program, you may not only be putting the company in a better financial position but will also be providing real value add benefit to staff at no cost to the company.

Important: All information provided is of a general nature only and should not be interpreted as advice.  Any Taxation information or calculations are based on our interpretation of applicable legislation as at 1st April 2018 and should not be used for a substitute for professional advice.


References

https://home.kpmg.com/au/en/home/insights/2017/04/aasb-16-leases-standard.html
https://www2.deloitte.com/content/dam/Deloitte/au/Documents/audit/deloitte-au-audit-aasb-16-guide-220916.pdf
https://www.intheblack.com/articles/2017/05/04/live-chat-aasb-16-leases-explained
https://www.intheblack.com/articles/2017/06/27/prepare-for-ifrs-16
https://home.kpmg.com/xx/en/home/insights/2016/01/leases-new-standard-balance-sheet-transparency-slideshare-first-impressions-ifrs16-130116.html