N O VAT E D L E A S I N G

A Novated Lease with ORIX is cost-effective, simple and flexible, with real benefits for

both employees and employers.

An ORIX Novated Lease is often the best way for an employee to include the vehicle of their choice in a salary package, helping

to optimise their salary while offering flexibility and convenience.

• A comprehensive range of lease options, inclusions and accessories are available to suit individual needs.

• Benefit from ORIX’s national purchasing power on the price paid for the vehicle, service costs and fuel.

• Finance and running costs are GST free and can be collected in part or wholly from an employees gross salary, reducing taxable income and optimising take home pay.

• Finance and running costs; fuel, tyres and servicing are covered in one simple monthly payment.

• A vehicle that suits the lifestyle can be chosen and the vehicle can be retained if an employee changes jobs.

NOVATED LEASE SAVINGSFleet discounts available on most models Maintenance: up to 20% off the retail price

Costs may be paid from pre-tax dollars Windscreens: up to 40% off the retail price

Save GST on a discounted pump price Batteries: up to 25% off the retail price

Save 10% GST on all running costs Tyres: up to 25% off the retail price

THE BENEFITS OF NOVATED

LEASING FOR EMPLOYEES

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These are estimated maximum percentage savings to be used as a guide only and will vary according to each specific employee Novated Lease. Fleet discounts will depend on vehicle and product type and can change without notice.

Maintenance and Repairs ORIX has preferential pricing with major suppliers of tyres, windscreens and batteries and discounts can be obtained on major brands.

For maintenance and repairs, ORIX makes servicing a vehicle easy, with a national network of dealers, service agents and providers. ORIX drivers will receive the benefit of nationally agreed pricing on service and parts.

ONLINE CAPABILITY

ORIX OneView and Reporting

ORIX OneView is an online tool made available to all Novated Lease holders. It provides 24/7 access to comprehensive information about the lease including budget variations, reporting and FBT management information.

ORIX Companion The ORIX Companion App is packed with features to assist employees to manage their Novated Lease. Users can access an overview of key lease information and submit reimbursements for out of pocket expenses.

Budget Management

ORIX Budget Management is a system that easily allows expenses such as maintenance, tyres, registration, insurance and fuel to be calculated and set for nominated kilometres at the commencement of the lease.

Registration and CTP may also be covered in the lease rental .

Lease budgets can be adjusted at any time, to reflect changes in kilometres travelled or service costs. There is no fee for this service.

ORIX also offers the option to easily and quickly reimburse expenses if there are any emergency out-of-pocket expenses.

LEASE FLEXIBILITY

Choosing a Dealer

Let ORIX find the best price for a new vehicle from within ORIX’s preferred dealer network. Alternatively, employees can organise the price from the dealer of their choice and ORIX will purchase the vehicle directly. Charges may apply.

As delivery times can be lengthy depending on the vehicle selection, this process should commence as soon as possible.

Used Vehicles Used vehicles may be leased, but by lease end the vehicle can be no older than ten years or have travelled more than 200,000 kilometres. Conditions apply.

Choosing the Lease Length Lease terms range from 12 to 60 months. Leases can often be extended for another term at lease end, providing drivers with complete flexibility.

OPTIONAL BENEFITS

Adding Accessories

Employees should not forget to choose the options and accessories they would like on their vehicle at the time of quoting. These can include accessories such as window tinting, reversing cameras, GPS devices and much more.

It is important that all options and accessories are considered when requesting a Novated Lease quotation because once the contract has commenced, it will not be possible to add options through the salary package.

Changing Employers Provided the new employer has an ORIX Novated Lease facility and/or agrees to the Novation Agreement then ORIX can simply transfer a lease to the next employer. This allows the benefits of the Novated Lease to continue.

CHOOSE THE VEHICLE THAT FITS YOUR LIFESTYLE, WHATEVER YOUR BUDGET.

A BENEFIT FOR ALL

EMPLOYEES

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Conditions and costs apply for all optional benefits and accessories

Comprehensive Insurance

ORIX can arrange a comprehensive insurance policy through AON, or drivers have the freedom to choose their own insurer.

If the employee chooses their own insurer, ORIX will build a budget in line with the yearly premium and the employee may claim a reimbursement once the insurance is paid.

Relief Vehicle Optional coverage that includes a temporary relief vehicle is available through a Novated Lease. This coverage is utilised when the vehicle is unavailable for more than 24 hours due to mechanical breakdown, accident or theft.

Lease Protection Insurance

For peace of mind, ORIX offers optional cover in the event of involuntary employment separation. Under the policy, rentals will be covered for six months while the lease holder remains unemployed and for 24 months should they be off work due to sickness or accident. (Conditions apply. Please refer to the PDS for full details).

Roadside Assistance

Optional Roadside Assistance is available, where it is not covered by the manufacturer when the vehicle is purchased. This provides assistance for breakdowns around Australia.

Fringe Benefits Tax (FBT)

FBT is a tax paid on certain benefits employers provide to their employees. FBT is separate from income tax. ORIX can provide an estimate of the FBT applicable to a Novated Lease.

AN ORIX NOVATED LEASE OFFERS THE FLEXIBILITY TO ADD OPTIONAL ACCESSORIES.

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Vehicle Price $32,700 Annual Travel 20,000km Lease Length 4 years Gross Salary $75,000/yr

DESCRIPTION WITHOUT A NOVATED LEASE WITH A NOVATED LEASE

Less salary sacrifice N/A $5,589.00

Revised gross salary $75, 000.00 $69,411.00

Less tax on revised salary $17,422.00 $15,493.00

Less post-tax deductions $15,609.00 $ 6,540.00

Take home pay after tax and vehicle costs

$ 41,969.00 $ 47,378.00

Vehicle Price $56,364 Annual Travel 40,000km Lease Length 4 years Gross Salary $195,000/yr

DESCRIPTION WITHOUT A NOVATED LEASE WITH A NOVATED LEASE

Less salary sacrifice N/A $9,074.00

Revised gross salary $195,000.00 $185,926.00

Less tax on revised salary $65,182.00 $60,735.00

Less post-tax deductions $26,720.00 $11,272.00

Take home pay after tax and vehicle costs

$ 103,098.00 $ 113,919.00

These calculations use a number of assumptions (including that the employee has no other existing salary packaged item) to provide an estimate of the Novated Lease cost and the potential savings from entering into such a lease. In most cases, a formal quote will be less expensive than the indicative quote because of ORIX’s buying power and refinement of estimated maintenance costs. The assumptions used by this Novated Lease Calculation are set out in ORIX’s Terms & Conditions found at www.orix.com.au/novated-leasing/calculator.html Tax rates based on 2017 ATO guidelines for an individual.

NOVATED LEASE SAVINGS

Save up to $5,409.00 per annum = $450.75 per month

Save up to $10,821.00 per annum = $901.75 per month

• A great way to attract and retain high calibre employees through offering the advantage of Novated Leasing.

• Reduced administrative burden – employees deal directly with the dedicated team at ORIX, who have the expertise to answer any enquiries in relation to salary packaging a vehicle.

• Employers are not responsible for vehicles when employees leave their employ.

• ORIX has the flexibility to work within all company policies.

• ORIX provides dedicated account management and FBT reporting.

• Industry leading online capability and reporting for both employers and employees.

ORIX WILL COME TO YOUORIX has dedicated Novated Education Managers who will visit each location, Australia wide. Group education sessions or appointments on an individual basis can be organised.

Contact the team at ORIX today at novated@orix.com.au to arrange a visit from an ORIX Novated Education Manager.

RETAIN VALUABLE EMPLOYEES, INCREASE EMPLOYEE SATISFACTION AND BECOME AN EMPLOYER OF CHOICE.

An ORIX Novated Lease is a great way for an employee to include the vehicle of their choice in a salary package, helping them to optimise their salary while offering flexibility and convenience.

THE BENEFIT OF NOVATED LEASING FOR EMPLOYERS

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This publication is produced by ORIX Australia Corporation Limited ABN 79 002 992 681. It is intended to provide general information about our products and services, current at the time of printing but could change without notice. The contents do not constitute financial or taxation advice and should not be relied upon as such. Sep 2019

An ORIX Novated Lease offers cost and tax savings, flexibility and convenience on the purchase and running costs of a vehicle.

Contact the ORIX team today.Phone: 1300 363 993Email: novated@orix.com.au orix.com.au