Novated lease- can my company claim back GST?

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One of a employees has a novated franchise for his car. We compensate a monthly instalments upon a car. This cost includes GST.

Can a association explain behind a GST?

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Comments (2)

miss schlonky said on 26-10-2009

Yes, that’s right. Every novated lease salary sacrifice arrangement I’ve been involved in has worked that way. The employer can claim a GST input tax credit for the expenses of the employee paid out of their pre-tax wages.
albert g said on 26-10-2009

I believe you can but then anything your employee pays you towards the private use of the vehicle then becomes GST income in your hands.

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