Novated Packaging Program Setup Form

What services will Auto Car Finance provide?

The services that Auto Car Finance will deliver to the Employer include:

• Electronic and hard copy materials for use by the Employer to assist Employee understanding of the Novated Packaging Program
• Delivery of information sessions for Employees at mutually convenient times and locations
• Provide salary advice to the Employer within 2 business days of settlement of the novated lease finance recommending the manner in which salary deductions should be arranged
• Provide tax invoices to the Employer within 5 business days of the commencement of each month
• Upon termination of the employment or at the end of novated packaging agreement (e.g. expiry of the novated lease finance) provide the Employer a reconciliation of an Employee’s novated lease package
  • If in surplus (net of any accrued costs) provide a credit note to the Employer within 5 business days of such reconciliation
  • If a deficit (net of any accrued costs) provide an invoice to the Employer within 5 business days such reconciliation

The services that Auto Car Finance will deliver to Employee’s include:

• Respond to Employee enquiries about the novated package program within 1 business day;
• Provide Employees with no-cost consultations to assist them in understanding the suitability of
  the Novated Packaging Program;
• Source new vehicles for Employee utilising available fleet discounts (where applicable);
• Arrange novated lease finance through the panel of financiers available to Auto Car Finance;
• Any fees levied by Auto Car Finance will be detailed in each Employee’s novated lease
  proposal. A management fee of $35.00 including GST per month will be levied by Auto Car
  Finance and included in the Employee’s lease budgets. Any additional charges will be outlined
  in the Employee’s novated lease proposal (e.g. additional fuel card, roadside assistance);
• Disburse funds to the relevant organisations that have provided services under the relevant
  Employee’s novated package agreements;
• Reimburse Employee for valid expenses they incur relating to their novated packaging
  agreement within 5 business days from novated lease surplus;
• Provide monthly reports to Employee outlining the actual versus budgeted expenditure upon
  request; and
• Upon termination of the employment or at the end of a novated packaging agreement (e.g.
  expiry of the novated lease finance) provide the Employee with an Employer vetted
  reconciliation of their novated lease package upon request.

Overspending Against Novated Package Budgets

In the event that an Employee’s novated package budget falls into deficit by $500 or more due to a failure by the Employer to pay invoices or overspending by the Employee, Auto Car Finance is not obligated to pay any expenses that arise under the novated package agreement.

In the event that an Employee’s budget falls into deficit by $500 or more Auto Car Finance will in its
absolute discretion;

• Issue a tax invoice to the Employer for recoupment of such overspend which must be paid
  within 10 business days; and/or
• Require the Employee and Employer to enter into a revised novated packaging budget to
  minimise future spending overruns against the budget. The Services that Car Finance will deliver to the Employer include

How will the invoicing work?

You will receive 1 invoice per invoicing cycle (monthly, fortnightly or weekly) for all novated leases. Each lease will be represented as 1 line item on the invoice. The invoice for each lease represents the budgeted running costs and will remain the same unless Auto Car Finance provides and amended payroll advice. Payment terms for each invoice will be noted on the invoice issued by Auto Car Finance.

Invoices will be issued on the first business day of each calendar month or in the case of invoices on a fortnightly or weekly cycle on a Monday. It will be emailed to your nominated accounts contact.

How will FBT be handled?

Based on the lease parameters used to calculate the salary deductions on the payroll advice, the FBT liability to the Employer should be alleviated.

This can be achieved through a post-tax contribution from the Employee’s after tax income (known as the Employee contribution method) or alternatively a pre-tax contribution from the Employee’s salary to reimburse the company for any fringe benefits tax payable to the Australian Taxation Office.

What are your responsibilities as the Employer?

• To pay the invoice within the trading terms noted on the invoice;
• To inform Auto Car Finance of any changes to contact information or staffing that may relate
  to or in any way affect our ability to deliver services; and
• As soon as you are informed of an Employee’s termination, you are to notify Auto Car Finance
  in writing via email to [email protected]
• Provide to Auto Car Finance 30 days notice of termination of this agreement via email.

Invoices for services will continue until Auto Car Finance has been notified to this effect. Auto Car Finance is not responsible for any tax, including any penalties incurred by You or any of your Employees.

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