1 00:00:00,680 --> 00:00:01,000 Speaker 1: Hello. 2 00:00:01,560 --> 00:00:05,040 Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the 3 00:00:05,160 --> 00:00:08,760 Speaker 2: Order Kerney Whoalbury and a waddery woman. And before we 4 00:00:08,800 --> 00:00:11,440 Speaker 2: get started on She's on the Money podcast, I would 5 00:00:11,520 --> 00:00:14,520 Speaker 2: like to acknowledge the traditional custodians of the land of 6 00:00:14,560 --> 00:00:18,680 Speaker 2: which this podcast is recorded on a wondery country. Acknowledging 7 00:00:18,680 --> 00:00:22,560 Speaker 2: the elders, the ancestors and the next generation coming through 8 00:00:23,040 --> 00:00:27,159 Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and 9 00:00:27,240 --> 00:00:30,600 Speaker 2: the storytelling of you to make a difference for today 10 00:00:31,040 --> 00:00:32,640 Speaker 2: and lasting impact for tomorrow. 11 00:00:33,320 --> 00:00:34,120 Speaker 1: Let's get into it. 12 00:00:34,800 --> 00:00:54,080 Speaker 3: She's on the Money. She's on the Money. 13 00:00:57,840 --> 00:01:00,560 Speaker 4: Hello, and welcome to She's on the Money podcast for 14 00:01:00,600 --> 00:01:04,000 Speaker 4: millennials who want financial freedom. My name is Beck Sayed 15 00:01:04,200 --> 00:01:07,320 Speaker 4: and Victoria Divine is with us to talk about something 16 00:01:07,640 --> 00:01:11,199 Speaker 4: many of you listening will know about, but I don't 17 00:01:11,200 --> 00:01:14,680 Speaker 4: know anything about dovated leasing. 18 00:01:15,280 --> 00:01:18,280 Speaker 1: Hello, my friend today. Yes, indeed, we are going to 19 00:01:18,360 --> 00:01:20,600 Speaker 1: run through what it is, how it works, the pros 20 00:01:20,640 --> 00:01:22,920 Speaker 1: and cons, and so much more. I feel like we 21 00:01:22,959 --> 00:01:26,360 Speaker 1: get so many dms on a regular basis, like Hey, 22 00:01:26,520 --> 00:01:29,360 Speaker 1: my work it offers novated leasing. Should I do it? 23 00:01:29,400 --> 00:01:31,200 Speaker 1: And I'm like, well, I can't answer that, but you 24 00:01:31,240 --> 00:01:34,679 Speaker 1: know what I can do to a podcast? Ah, let's 25 00:01:34,680 --> 00:01:36,680 Speaker 1: do it. It's the only thing we've got going for 26 00:01:36,760 --> 00:01:37,720 Speaker 1: us at this point in life. 27 00:01:37,720 --> 00:01:40,759 Speaker 4: Beck, I'm happy about that. Actually, what is a novated lease? 28 00:01:41,080 --> 00:01:43,440 Speaker 1: So anvated lease is a way that you can finance 29 00:01:43,520 --> 00:01:47,360 Speaker 1: a new or used car. You can make your repayments 30 00:01:47,680 --> 00:01:50,640 Speaker 1: from your pre tax salary, which is why so many 31 00:01:50,680 --> 00:01:54,160 Speaker 1: people find it so damn attracting. With approval from your 32 00:01:54,240 --> 00:01:59,200 Speaker 1: employer under what's called a salary sacrifice arrangement, this can 33 00:01:59,240 --> 00:02:03,560 Speaker 1: effectively reduce your taxable income. It also allows you to 34 00:02:03,600 --> 00:02:06,160 Speaker 1: bundle your vehicle's expenses into one simple payment. 35 00:02:06,520 --> 00:02:10,480 Speaker 4: Oh okay, yeah, I'm so you're like, I would love that. 36 00:02:10,720 --> 00:02:12,600 Speaker 4: So how does anvadd lease work? 37 00:02:12,919 --> 00:02:14,960 Speaker 1: So what you'll do is you'll find a new or 38 00:02:15,040 --> 00:02:18,040 Speaker 1: a used car that you want to purchase. You'll decide 39 00:02:18,080 --> 00:02:20,519 Speaker 1: whether it's good. I can't help you with that as 40 00:02:20,560 --> 00:02:23,320 Speaker 1: to what a good car is. You enter into what's 41 00:02:23,320 --> 00:02:26,040 Speaker 1: called a lease agreement with a finance provider or a bank. 42 00:02:26,560 --> 00:02:29,840 Speaker 1: You then enter into what's called a salary sacrifice arrangement 43 00:02:29,880 --> 00:02:33,200 Speaker 1: with your employer to cover the car lease with repayments 44 00:02:33,240 --> 00:02:36,960 Speaker 1: coming from your pre tax salary. You can also sometimes 45 00:02:36,960 --> 00:02:39,600 Speaker 1: include car running costs in your lease, so things like 46 00:02:39,680 --> 00:02:42,920 Speaker 1: servicing back and petrol, which is very attractive because you 47 00:02:42,919 --> 00:02:46,880 Speaker 1: know what's really expensive petrol? Very true. I don't even 48 00:02:46,880 --> 00:02:49,080 Speaker 1: want to talk about it. How salty I get with 49 00:02:49,280 --> 00:02:52,360 Speaker 1: how expensive it is to fill up my entire tank, 50 00:02:52,400 --> 00:02:55,120 Speaker 1: which is a privilege in itself. I know the school 51 00:02:55,120 --> 00:02:59,560 Speaker 1: Sten so expensive school Sten. Anyway, then your employer makes 52 00:02:59,560 --> 00:03:03,360 Speaker 1: repayments to your finance provider on your behalf from your 53 00:03:03,400 --> 00:03:07,400 Speaker 1: pre tax salary. Sure, but if you change jobs, you 54 00:03:07,440 --> 00:03:10,320 Speaker 1: take the card with you and continue to make repayments directly, 55 00:03:10,560 --> 00:03:13,000 Speaker 1: or you transfer your agreement to your new employer. So 56 00:03:13,040 --> 00:03:15,760 Speaker 1: there's a bit of a meaning, boy, And if you 57 00:03:15,800 --> 00:03:17,640 Speaker 1: transfer it to your new employer, you have to make 58 00:03:17,639 --> 00:03:22,200 Speaker 1: sure that your new employer approves it. Okay, And there's 59 00:03:22,200 --> 00:03:24,480 Speaker 1: the probability that they may go, oh, I'm so sorry, Beck, 60 00:03:24,520 --> 00:03:26,880 Speaker 1: we don't offer that. Sure, which is okay because they 61 00:03:26,880 --> 00:03:29,320 Speaker 1: don't have to offer that. I wonder about credit checks. 62 00:03:29,360 --> 00:03:30,480 Speaker 1: I'm sure we'll get to that at some point. What 63 00:03:30,480 --> 00:03:31,799 Speaker 1: do you mean, of course there's a credit check. You're 64 00:03:31,800 --> 00:03:34,720 Speaker 1: speaking out of line of credit. Absolutely, there's the employers 65 00:03:34,760 --> 00:03:38,040 Speaker 1: paying them. Yes, but it's in your name, coming from 66 00:03:38,200 --> 00:03:41,960 Speaker 1: your income. I about them. Yeah, so your employer also 67 00:03:42,040 --> 00:03:43,640 Speaker 1: pays money into your account. 68 00:03:43,880 --> 00:03:44,080 Speaker 2: Yep. 69 00:03:44,200 --> 00:03:47,160 Speaker 1: From the top. What would happen is you've got your 70 00:03:47,200 --> 00:03:50,560 Speaker 1: salary that is allocated towards you. Your employer already takes 71 00:03:50,600 --> 00:03:52,880 Speaker 1: out your tax and pays that on your behalf, so 72 00:03:52,960 --> 00:03:55,000 Speaker 1: you don't have all of the money coming into your account. 73 00:03:55,000 --> 00:03:56,800 Speaker 1: And then you pay tax r like a business would. 74 00:03:57,200 --> 00:04:00,440 Speaker 1: So you pay your tax, they would allocate supranuation to you. 75 00:04:00,520 --> 00:04:02,840 Speaker 1: They would also allocate the money that goes into your 76 00:04:02,880 --> 00:04:05,680 Speaker 1: take home salary, which gets transferred to your bank account. 77 00:04:05,840 --> 00:04:08,320 Speaker 1: And then this would be an additional add on where 78 00:04:08,320 --> 00:04:11,160 Speaker 1: they actually slice some of your take home salary off 79 00:04:11,480 --> 00:04:14,280 Speaker 1: and transfer it to pay off your car lease. So 80 00:04:14,320 --> 00:04:16,720 Speaker 1: it's not as though the lease agreement is with them. 81 00:04:17,040 --> 00:04:19,880 Speaker 1: What happens is the lease agreement is with you, but 82 00:04:19,960 --> 00:04:23,279 Speaker 1: the agreement is that your employer uses your pre tax salary, 83 00:04:23,440 --> 00:04:26,119 Speaker 1: which means it can't come through your bank account. Right, Okay, 84 00:04:26,200 --> 00:04:28,560 Speaker 1: so clear that up. Yeah, But just for the sake 85 00:04:28,600 --> 00:04:30,279 Speaker 1: of people listening, can you give us an example. 86 00:04:31,080 --> 00:04:31,279 Speaker 3: Wow? 87 00:04:31,440 --> 00:04:33,520 Speaker 1: Yeah, I get it, But give us an example just 88 00:04:34,360 --> 00:04:38,520 Speaker 1: for someone you're like somebody that's clearly not me doesn't 89 00:04:38,560 --> 00:04:42,000 Speaker 1: get his all right, So Lert's use the example of 90 00:04:42,040 --> 00:04:46,240 Speaker 1: a seventy thousand dollars before tax salary, right and your 91 00:04:46,279 --> 00:04:49,560 Speaker 1: novated lease payments they come to ten thousand dollars. This 92 00:04:49,760 --> 00:04:54,360 Speaker 1: means that your quote taxable income becomes sixty thousand dollars 93 00:04:54,680 --> 00:04:57,320 Speaker 1: if you pay all your novated lease payments from your 94 00:04:57,360 --> 00:04:59,880 Speaker 1: pre tax salary, So what you actually declared to the 95 00:05:00,080 --> 00:05:02,360 Speaker 1: tax office and pay tax on is sixty thousand dollars 96 00:05:02,360 --> 00:05:05,240 Speaker 1: instead of the seventy thousand dollars, which is arguably very sexy. 97 00:05:05,640 --> 00:05:09,440 Speaker 1: This means you'll obviously pay less tax over that year, 98 00:05:09,720 --> 00:05:12,599 Speaker 1: which is why so many people are attracted to novated leases. 99 00:05:12,920 --> 00:05:15,760 Speaker 1: Your finance provider or an accountant can obviously help you 100 00:05:15,839 --> 00:05:19,039 Speaker 1: work out the potential savings and other things you're going 101 00:05:19,080 --> 00:05:21,840 Speaker 1: to need to consider before entering into a novated lease 102 00:05:22,120 --> 00:05:25,479 Speaker 1: based on your personal circumstances. So obviously, I keep saying 103 00:05:25,480 --> 00:05:27,440 Speaker 1: it's really sexy, and I really need to get a 104 00:05:27,480 --> 00:05:30,560 Speaker 1: better descriptor, but I have none, and I lack a 105 00:05:30,600 --> 00:05:32,760 Speaker 1: lot of creativity, so we're just going to keep calling 106 00:05:32,800 --> 00:05:35,760 Speaker 1: it sexy again and again. But that means obviously you're 107 00:05:35,800 --> 00:05:40,240 Speaker 1: reducing the tax that you pay, but another sexy option 108 00:05:40,480 --> 00:05:43,200 Speaker 1: is that it could drop you down a tax bracket. 109 00:05:43,839 --> 00:05:46,280 Speaker 1: So if you're sitting on what's called a CUSP, which 110 00:05:46,320 --> 00:05:49,720 Speaker 1: is where we know that the average marginal and most 111 00:05:49,720 --> 00:05:53,279 Speaker 1: common marginal tax bracket in Australia is between forty five 112 00:05:53,320 --> 00:05:56,480 Speaker 1: thousand and one dollar to one hundred and twenty thousand 113 00:05:56,520 --> 00:05:59,400 Speaker 1: dollars per annum, which means you pay five thousand and 114 00:05:59,480 --> 00:06:02,840 Speaker 1: ninety two dollars in tax plus thirty two point five 115 00:06:02,960 --> 00:06:06,440 Speaker 1: cents in every dollar over forty five thousand dollars earned. Okay, 116 00:06:06,640 --> 00:06:11,000 Speaker 1: that means that hypothetically, beck if you earned twenty thousand 117 00:06:11,160 --> 00:06:13,840 Speaker 1: and one dollar, it would mean that you fall into 118 00:06:13,839 --> 00:06:17,280 Speaker 1: the tax bracket of paying twenty nine thousand dollars in 119 00:06:17,360 --> 00:06:21,280 Speaker 1: tax plus thirty seven cents in every dollar, which is 120 00:06:21,320 --> 00:06:23,640 Speaker 1: different to the five thousand plus twenty two point five. 121 00:06:23,680 --> 00:06:25,840 Speaker 1: That's a lot of a difference. It means that if 122 00:06:25,880 --> 00:06:28,600 Speaker 1: you then maybe used a structure like this on your 123 00:06:28,640 --> 00:06:31,640 Speaker 1: twenty thousand and one dollar salary and you had no 124 00:06:31,760 --> 00:06:35,119 Speaker 1: vateed lease payments of ten thousand dollars, you would actually 125 00:06:35,200 --> 00:06:38,240 Speaker 1: drop to having a taxable income of one hundred and 126 00:06:38,279 --> 00:06:40,960 Speaker 1: ten thousand dollars, which actually takes you back to that 127 00:06:41,000 --> 00:06:44,760 Speaker 1: thirty two point five cent tax bracket, gotcha, which could 128 00:06:44,839 --> 00:06:49,080 Speaker 1: be very attractive. And obviously it only works in very 129 00:06:49,240 --> 00:06:52,680 Speaker 1: specific circumstances where you know you are on that cusp, 130 00:06:52,720 --> 00:06:54,719 Speaker 1: you're just over and the payments that you're making on 131 00:06:54,760 --> 00:06:58,040 Speaker 1: an ovated lease actually take you down a tax bracket. 132 00:06:58,240 --> 00:07:00,960 Speaker 1: But sure, it's definitely worth looking into. Yeah, like if 133 00:07:01,000 --> 00:07:04,159 Speaker 1: it makes sense for you and your personal circumstances. So 134 00:07:04,279 --> 00:07:06,200 Speaker 1: if it's a lease, is it like a real debt? 135 00:07:06,400 --> 00:07:08,720 Speaker 1: That is a very good question, and yes it is, 136 00:07:09,240 --> 00:07:12,240 Speaker 1: And I think that that's where we need to really 137 00:07:12,320 --> 00:07:16,080 Speaker 1: talk about it. I called it sexy multiple times because 138 00:07:16,120 --> 00:07:19,160 Speaker 1: that's really attractive. Right, it's pre tax Right, we can 139 00:07:19,160 --> 00:07:21,960 Speaker 1: buy a bigger, better car, Beck, we can all go 140 00:07:22,080 --> 00:07:26,640 Speaker 1: get land cruisers. Do we need land cruisers? No, you 141 00:07:26,680 --> 00:07:28,960 Speaker 1: live in the city, you don't need a land cruiser. 142 00:07:29,200 --> 00:07:31,920 Speaker 1: You don't even go four wheeling, Like that's not an option. 143 00:07:32,080 --> 00:07:33,880 Speaker 1: But you mate has one, so you need one. And 144 00:07:34,000 --> 00:07:37,120 Speaker 1: you know what, I guess my work, they often evaded leasing. 145 00:07:37,480 --> 00:07:40,120 Speaker 1: It's a slippery slope of making a decision because you're 146 00:07:40,200 --> 00:07:43,400 Speaker 1: justifying that it's a good financial decision. Yeah, because you're like, well, 147 00:07:43,440 --> 00:07:47,360 Speaker 1: it's pre tax, that's very attractive, and it means like 148 00:07:47,400 --> 00:07:50,520 Speaker 1: you get a more expensive car totally and the money 149 00:07:50,560 --> 00:07:54,880 Speaker 1: would go further. And you're not wrong, But any debt 150 00:07:55,040 --> 00:07:57,720 Speaker 1: that is not creating wealth for you is a bad debt. 151 00:07:58,120 --> 00:08:00,520 Speaker 1: So I would look at an ovated lease as a 152 00:08:00,520 --> 00:08:03,040 Speaker 1: bad debt. Let's see it as a good debt. I 153 00:08:03,080 --> 00:08:05,040 Speaker 1: see it as something that is not helping you create 154 00:08:05,080 --> 00:08:07,720 Speaker 1: future wealth. And I mean there is the argument that 155 00:08:07,760 --> 00:08:10,440 Speaker 1: the car could be worth more when you come to 156 00:08:10,720 --> 00:08:12,840 Speaker 1: get rid of it or dispose it. I don't give 157 00:08:12,920 --> 00:08:18,840 Speaker 1: two flying slippers say it said that. I kind of 158 00:08:18,840 --> 00:08:20,400 Speaker 1: look at it and go no. At the end of 159 00:08:20,400 --> 00:08:23,720 Speaker 1: the day, a car is a depreciating asset. And I 160 00:08:23,760 --> 00:08:28,080 Speaker 1: would hate for people to justify buying more or spending more, 161 00:08:28,160 --> 00:08:30,720 Speaker 1: because ultimately that impacts your take home income, and that 162 00:08:30,800 --> 00:08:33,679 Speaker 1: ultimately impacts your ability to invest and save and create 163 00:08:33,720 --> 00:08:36,640 Speaker 1: financial freedom. And as much as you can justify it 164 00:08:36,640 --> 00:08:38,240 Speaker 1: and be like, oh, we need this, we need that, 165 00:08:38,400 --> 00:08:42,360 Speaker 1: like you arguably don't, right, okay, Like it is a 166 00:08:42,440 --> 00:08:46,640 Speaker 1: luxury to afford a brand new car. Even now I'm 167 00:08:46,640 --> 00:08:50,280 Speaker 1: looking at purchasing a new car. Beck, And you know, 168 00:08:50,960 --> 00:08:52,719 Speaker 1: Steve and I are in a financial position where we 169 00:08:52,760 --> 00:08:54,800 Speaker 1: could afford a brand new car. I could go and 170 00:08:54,800 --> 00:08:57,360 Speaker 1: get a lease on a brand new car tomorrow. I 171 00:08:57,400 --> 00:09:00,560 Speaker 1: can't think of anything worse. I will not be buying 172 00:09:00,600 --> 00:09:04,760 Speaker 1: a car on finance. Is it a good financial decision? Sometimes? Yeah, 173 00:09:04,880 --> 00:09:07,680 Speaker 1: a car lease, especially as a business owner where it 174 00:09:07,679 --> 00:09:10,080 Speaker 1: can be in the business right, like I could novate 175 00:09:10,200 --> 00:09:13,520 Speaker 1: lease my own car. I'm terrified of bad debt because 176 00:09:13,880 --> 00:09:16,960 Speaker 1: I'm not responsible. I can't be held responsible, Beck. So 177 00:09:17,160 --> 00:09:18,480 Speaker 1: at the end of the day, you've got to know 178 00:09:18,559 --> 00:09:21,280 Speaker 1: yourself as well as know the structure. And it's like 179 00:09:21,320 --> 00:09:24,679 Speaker 1: credit cards, right, some people are really good at managing 180 00:09:24,720 --> 00:09:28,440 Speaker 1: credit cards and they use them for cycling through points 181 00:09:28,520 --> 00:09:30,480 Speaker 1: and they get all these business class flights. Like we've 182 00:09:30,480 --> 00:09:32,840 Speaker 1: spoken about Brooke before on the podcast, who is one 183 00:09:32,880 --> 00:09:37,320 Speaker 1: of our team members. She like stealtz credit cards like 184 00:09:37,400 --> 00:09:40,679 Speaker 1: she is the queen of making sure that she's getting 185 00:09:40,720 --> 00:09:43,439 Speaker 1: all of the sign on bonuses and then disposing of 186 00:09:43,520 --> 00:09:45,920 Speaker 1: the credit card or using them in really constructive ways. 187 00:09:46,679 --> 00:09:48,559 Speaker 1: I'm going straight to Lululemon. If you give me a 188 00:09:48,559 --> 00:09:52,360 Speaker 1: credit card. Cannot be trusted, Beck, and that's where you 189 00:09:52,360 --> 00:09:54,360 Speaker 1: should look at an ovateed lease and go, well, actually, 190 00:09:54,480 --> 00:09:56,800 Speaker 1: is this a good financial decision If you need a 191 00:09:56,840 --> 00:09:59,160 Speaker 1: new family car and it's something where you go, Beck, 192 00:09:59,240 --> 00:10:01,240 Speaker 1: we've been meaning to get it, Like the only option 193 00:10:01,360 --> 00:10:04,320 Speaker 1: is going to be you know, a car loan. That's fine, 194 00:10:04,360 --> 00:10:07,240 Speaker 1: This could be a really really valid option that actually 195 00:10:07,240 --> 00:10:10,760 Speaker 1: puts you in the best financial position for taking on 196 00:10:10,880 --> 00:10:13,760 Speaker 1: debt for a car. Sure, and that's great, but it's 197 00:10:13,760 --> 00:10:15,600 Speaker 1: still debt for a car, and we need to see 198 00:10:15,600 --> 00:10:18,679 Speaker 1: it as that, not some shiny benefit that your business 199 00:10:18,720 --> 00:10:22,040 Speaker 1: offers and you can absolutely take advantage of it, Yeah, 200 00:10:22,080 --> 00:10:24,679 Speaker 1: because I think a lot of businesses use it as 201 00:10:24,679 --> 00:10:27,920 Speaker 1: a shiny upgrade, like, oh, well, if you're signing on 202 00:10:28,080 --> 00:10:30,880 Speaker 1: beck one hundred thousand dollars salary package and we do 203 00:10:30,960 --> 00:10:36,960 Speaker 1: novated leasing, Okay, that is great if it applies to 204 00:10:37,000 --> 00:10:40,320 Speaker 1: your circumstance, But more often than not, it's just a 205 00:10:40,360 --> 00:10:41,520 Speaker 1: way to keep you in debt. 206 00:10:41,960 --> 00:10:45,520 Speaker 4: Right, Okay, we keep saying lease. But if you do 207 00:10:45,559 --> 00:10:47,480 Speaker 4: an ovated lease, does that mean you own the car? 208 00:10:47,679 --> 00:10:47,839 Speaker 2: No? 209 00:10:48,520 --> 00:10:51,600 Speaker 1: Oh okay, well the finance company owns the car. Sure 210 00:10:51,600 --> 00:10:53,920 Speaker 1: are then leasing the car from them? Sure? Do you 211 00:10:53,960 --> 00:10:57,400 Speaker 1: actually ever own the car. Beck, Well, technically no, while 212 00:10:57,400 --> 00:11:00,000 Speaker 1: you're running an ovated lease. In fact, you don't actually 213 00:11:00,120 --> 00:11:02,360 Speaker 1: want to own the car because all your tax benefits 214 00:11:02,400 --> 00:11:06,959 Speaker 1: would completely disappear. You okay, the finance company to own 215 00:11:07,000 --> 00:11:12,600 Speaker 1: your car. Okay, So it sounds good, but it doesn't 216 00:11:12,640 --> 00:11:15,800 Speaker 1: necessarily mean it is. I see. So this kind of 217 00:11:15,800 --> 00:11:18,280 Speaker 1: sounds like a hack to get a new car every 218 00:11:18,320 --> 00:11:20,920 Speaker 1: three years. Yeah, that is what a lot of people think. 219 00:11:21,160 --> 00:11:22,760 Speaker 1: So a lot of people go, all right, well, I'll 220 00:11:22,760 --> 00:11:24,800 Speaker 1: get an ovated lease, you never own the car. I'll 221 00:11:24,800 --> 00:11:27,800 Speaker 1: pay my novated lease payments, and then in three years, 222 00:11:27,800 --> 00:11:29,959 Speaker 1: once I'm done that lease, what we'll do is we'll 223 00:11:29,960 --> 00:11:31,800 Speaker 1: go back down to Toyota. We'll get a new car 224 00:11:32,360 --> 00:11:35,480 Speaker 1: that on a ovated lease and start cycle again. So 225 00:11:35,720 --> 00:11:38,720 Speaker 1: you never actually ever own a car that you're paying off. Right, 226 00:11:38,880 --> 00:11:42,440 Speaker 1: it sounds really tax effective, but you're leasing it instead 227 00:11:42,480 --> 00:11:46,000 Speaker 1: of paying the car off completely. There are certain circumstances 228 00:11:46,559 --> 00:11:50,040 Speaker 1: where when your norvated lease has expired, you can purchase 229 00:11:50,080 --> 00:11:52,440 Speaker 1: the car for a discounted rate and it sends up 230 00:11:52,440 --> 00:11:54,760 Speaker 1: being okay, and it would then move into your personal 231 00:11:54,800 --> 00:11:58,800 Speaker 1: name and not have the tax advantages that it previously had. However, 232 00:12:00,120 --> 00:12:04,400 Speaker 1: rocks in their head. Nobody in their right mind needs 233 00:12:04,440 --> 00:12:07,600 Speaker 1: a new car every three years. Controversial opinion. I hope 234 00:12:07,600 --> 00:12:09,720 Speaker 1: my friends aren't listening to this episode because I've got 235 00:12:09,720 --> 00:12:12,040 Speaker 1: a couple of them that literally get a new car 236 00:12:12,120 --> 00:12:13,959 Speaker 1: every three years, because they're like, oh, it's three years old. 237 00:12:13,960 --> 00:12:18,040 Speaker 1: I've got to get rid of it. Clah, My car's 238 00:12:18,040 --> 00:12:19,959 Speaker 1: from two thousand and six. I've been driving it since 239 00:12:20,000 --> 00:12:22,520 Speaker 1: twenty eleven. You will have to pry it from my 240 00:12:22,640 --> 00:12:25,440 Speaker 1: cold dead hands. And I've been talking to my husband. 241 00:12:25,600 --> 00:12:28,120 Speaker 1: The only reason that I would feasibly get rid of 242 00:12:28,120 --> 00:12:30,480 Speaker 1: it is because it's a two door Coupei. Because like 243 00:12:30,559 --> 00:12:32,400 Speaker 1: when I bought it, I thought I was so cool back, 244 00:12:32,440 --> 00:12:34,600 Speaker 1: I thought I was so cool, right, I bought it 245 00:12:34,640 --> 00:12:39,880 Speaker 1: at university and like hot stuff. Two doll Coupei all 246 00:12:39,920 --> 00:12:42,360 Speaker 1: on debt. Obviously, of course all on det But I 247 00:12:42,400 --> 00:12:44,680 Speaker 1: have my two dog, Coupay, and I was very excited 248 00:12:44,679 --> 00:12:48,079 Speaker 1: about I still love her a lot. But the only 249 00:12:48,120 --> 00:12:49,760 Speaker 1: reason I'd get rid of that is because a two 250 00:12:49,760 --> 00:12:53,880 Speaker 1: door Coupei didn't suit our lifestyle anymore, right, gotcha? You know? 251 00:12:54,200 --> 00:12:56,880 Speaker 1: Putting baby seats in the back of a two door Coupei, 252 00:12:57,400 --> 00:12:59,559 Speaker 1: that would be Hell, this is not great. I mean, 253 00:12:59,679 --> 00:13:03,319 Speaker 1: we could make it work technically, but I'm not that stubborn. 254 00:13:03,720 --> 00:13:07,040 Speaker 1: That's obviously my personal opinion. You might think, oh, well, 255 00:13:07,080 --> 00:13:10,040 Speaker 1: I actually do for these reasons, for safety reasons, like 256 00:13:10,080 --> 00:13:12,240 Speaker 1: you could come up with so many good debate. Sure 257 00:13:12,360 --> 00:13:14,640 Speaker 1: to go, but v yes, I do need a car 258 00:13:14,720 --> 00:13:16,640 Speaker 1: every three years. I've done all the maths. I've done this, 259 00:13:16,720 --> 00:13:18,840 Speaker 1: I've done that. At the end of the day, a 260 00:13:18,880 --> 00:13:21,760 Speaker 1: car is a depreciating asset, and if you have one 261 00:13:21,800 --> 00:13:23,880 Speaker 1: and you completely pay it off and then you run 262 00:13:23,920 --> 00:13:26,920 Speaker 1: it into the ground, that will arguably, always, always, always 263 00:13:26,960 --> 00:13:29,760 Speaker 1: be a better financial decision. Then you're getting a new, 264 00:13:30,000 --> 00:13:31,760 Speaker 1: shiny car every three years. 265 00:13:31,840 --> 00:13:32,040 Speaker 2: Yep. 266 00:13:32,360 --> 00:13:35,200 Speaker 1: You can't argue that. Cannot argue that your values might 267 00:13:35,200 --> 00:13:37,560 Speaker 1: be different. And that's totally okay, Like that is so 268 00:13:37,679 --> 00:13:41,240 Speaker 1: fine if you go. But b I am such a 269 00:13:41,280 --> 00:13:44,640 Speaker 1: petrol head. I love cars. Cars are my thing. Like 270 00:13:44,720 --> 00:13:47,080 Speaker 1: every three years, I get a new one. I am 271 00:13:47,200 --> 00:13:50,319 Speaker 1: so car proud, Like you're the dude or the chick 272 00:13:50,520 --> 00:13:52,640 Speaker 1: down at the car wash every Saturday morning, Like you 273 00:13:52,679 --> 00:13:54,800 Speaker 1: go your little chammy out in buff and your car up, 274 00:13:54,960 --> 00:13:57,240 Speaker 1: like that's your favorite thing in the entire world. You 275 00:13:57,280 --> 00:13:59,760 Speaker 1: sacrifice other things in your life so that you can 276 00:13:59,760 --> 00:14:02,240 Speaker 1: have that. I'm not gonna argue with your values. That's 277 00:14:02,280 --> 00:14:03,800 Speaker 1: what I am going to do is make sure that 278 00:14:03,880 --> 00:14:07,240 Speaker 1: you're as educated as possible so you know the ramifications 279 00:14:07,240 --> 00:14:08,800 Speaker 1: of the decision that you're making, and then you can 280 00:14:08,800 --> 00:14:11,520 Speaker 1: still make it. That's fine as long as you've got 281 00:14:11,520 --> 00:14:14,280 Speaker 1: the education behind you so that you go. You know what, 282 00:14:14,520 --> 00:14:16,920 Speaker 1: I don't care like some things in life are wastes 283 00:14:16,920 --> 00:14:19,120 Speaker 1: of money. Yeah, you know what's a waste of money? 284 00:14:19,160 --> 00:14:23,560 Speaker 1: My eyelash extensions. Am I still gonna get them? Absolutely? 285 00:14:23,920 --> 00:14:27,040 Speaker 1: Because I feel real hot when I have them back? Absolutely? 286 00:14:27,640 --> 00:14:30,280 Speaker 1: Does that mean that everyone always has to make the 287 00:14:30,400 --> 00:14:34,280 Speaker 1: best possible financial decision. No, no, but you have to 288 00:14:34,280 --> 00:14:36,120 Speaker 1: make it in line with your values, and you have 289 00:14:36,160 --> 00:14:39,600 Speaker 1: to be educated to know that the decision you're making 290 00:14:39,800 --> 00:14:41,280 Speaker 1: might not be the best one, but it's the best 291 00:14:41,280 --> 00:14:41,720 Speaker 1: one for you. 292 00:14:41,800 --> 00:14:44,240 Speaker 4: Speaking of education, what are some of the benefits of 293 00:14:44,280 --> 00:14:46,760 Speaker 4: nevated leasing? With anovated lease, you can use your car 294 00:14:46,800 --> 00:14:49,480 Speaker 4: for personal use, which is quite helpful. You don't just 295 00:14:49,520 --> 00:14:51,480 Speaker 4: have to be using their car for like business or 296 00:14:51,520 --> 00:14:54,960 Speaker 4: work purposes, which I think is a common misconception. Your 297 00:14:55,000 --> 00:14:58,000 Speaker 4: income the cost of your car and ongoing running costs 298 00:14:58,000 --> 00:15:00,440 Speaker 4: each year will actually decide how cost of efective a 299 00:15:00,480 --> 00:15:03,720 Speaker 4: norvated lease might actually be for you. The result will 300 00:15:03,760 --> 00:15:07,520 Speaker 4: be that your taxable income is reduced. The benefits also 301 00:15:07,600 --> 00:15:10,440 Speaker 4: depend on the way that your lease is actually structured BECK. 302 00:15:10,800 --> 00:15:14,800 Speaker 4: Some leases might package car expenses like registration and fuel 303 00:15:14,840 --> 00:15:17,920 Speaker 4: and tires and insurance together, so your repayments cover all 304 00:15:17,960 --> 00:15:21,400 Speaker 4: of these as well, whereas some employers may also allow 305 00:15:21,480 --> 00:15:23,800 Speaker 4: you to pay part of your norvated lease from after 306 00:15:23,960 --> 00:15:25,120 Speaker 4: tax dollars. 307 00:15:24,880 --> 00:15:28,440 Speaker 1: Which is called an employee contribution. If you're not on 308 00:15:28,480 --> 00:15:30,920 Speaker 1: the highest marginal tax rate, this can actually be cost 309 00:15:31,000 --> 00:15:34,520 Speaker 1: effective because fringe benefits tax, which is based on the 310 00:15:34,640 --> 00:15:38,040 Speaker 1: highest marginal tax rate BECK, may not have to be 311 00:15:38,080 --> 00:15:40,640 Speaker 1: paid to your employer from your pre tax salary in 312 00:15:40,680 --> 00:15:45,200 Speaker 1: addition to your norvated lease for payments, nervated leases can 313 00:15:45,240 --> 00:15:49,200 Speaker 1: effectively mean motoring costs are goods and services tax free, 314 00:15:49,800 --> 00:15:54,160 Speaker 1: so GST free for employees. The GST you would ordinarily 315 00:15:54,200 --> 00:15:56,720 Speaker 1: pay on the purchase price is covered by the finance 316 00:15:56,760 --> 00:15:59,920 Speaker 1: provider and they can claim an input for tax and GSD, 317 00:16:00,120 --> 00:16:02,840 Speaker 1: by the way, is ten percent. If running costs are 318 00:16:02,920 --> 00:16:06,360 Speaker 1: included in your novated lease. These can actually be packaged 319 00:16:06,360 --> 00:16:09,480 Speaker 1: to employees with their lease payment without GST, as the 320 00:16:09,520 --> 00:16:12,960 Speaker 1: employer claims the tax component back as an input tax 321 00:16:13,000 --> 00:16:16,520 Speaker 1: as well. I see. Okay, just means again, you know 322 00:16:16,560 --> 00:16:19,960 Speaker 1: how we talk about like franking credits and stuff. Things 323 00:16:20,000 --> 00:16:22,400 Speaker 1: have little tickets on them to be like by the way, 324 00:16:22,440 --> 00:16:24,520 Speaker 1: this one's tax free, or by the way it comes 325 00:16:24,600 --> 00:16:27,680 Speaker 1: with this certain benefit and input tax credit is the 326 00:16:27,720 --> 00:16:31,080 Speaker 1: same as that, but it's for a business. Okay. Yeah, 327 00:16:31,080 --> 00:16:34,000 Speaker 1: So like GST is kind of like left pocket, right pocket. 328 00:16:34,160 --> 00:16:37,640 Speaker 1: Like when you're a business owner, you pay GST and 329 00:16:37,680 --> 00:16:41,040 Speaker 1: then you also get GST, but all the GST that 330 00:16:41,080 --> 00:16:43,720 Speaker 1: you collect actually gets paid back to the government, So 331 00:16:43,800 --> 00:16:46,120 Speaker 1: it's like I charge it, but that doesn't come into 332 00:16:46,120 --> 00:16:49,560 Speaker 1: play with my profit. Whereas for you, beck, as a consumer, 333 00:16:49,880 --> 00:16:51,200 Speaker 1: when you go to the shops and you buy a 334 00:16:51,200 --> 00:16:53,960 Speaker 1: new drink bottle, for example, there will be a goods 335 00:16:54,000 --> 00:16:57,320 Speaker 1: and services component that you pay, but you can't claim 336 00:16:57,360 --> 00:17:00,920 Speaker 1: that tax time. This changes that circumstance. So someone in 337 00:17:00,960 --> 00:17:04,160 Speaker 1: the background is making the GST effective for you, which 338 00:17:04,200 --> 00:17:07,080 Speaker 1: is kind of attractive. Yeah, I love that. Also, last 339 00:17:07,080 --> 00:17:10,520 Speaker 1: point on this, like in the pros area is compared 340 00:17:10,560 --> 00:17:12,960 Speaker 1: to other kinds of finance like a direct car loan, 341 00:17:13,000 --> 00:17:16,080 Speaker 1: an ovated lease gives you a few different options for 342 00:17:16,200 --> 00:17:18,520 Speaker 1: what you do when the lease term ends. So you 343 00:17:18,520 --> 00:17:20,800 Speaker 1: can pay off the residual so that you then own 344 00:17:20,920 --> 00:17:23,600 Speaker 1: the vical like we're talking about before. You could renew 345 00:17:23,640 --> 00:17:26,720 Speaker 1: the lease for a longer term, either with the same vikel, 346 00:17:26,800 --> 00:17:29,440 Speaker 1: or you could upgrade, like you were explaining every three 347 00:17:29,480 --> 00:17:32,159 Speaker 1: is you could upgrade to a new car, or alternatively, 348 00:17:32,280 --> 00:17:34,640 Speaker 1: you could sell the car and pay the residual off 349 00:17:34,680 --> 00:17:37,520 Speaker 1: to the financer, and then any profit you make is 350 00:17:37,560 --> 00:17:42,600 Speaker 1: actually yours to keep. That's free. That's pretty cool. Yeah, Okay, 351 00:17:43,400 --> 00:17:45,800 Speaker 1: now I know it's not all pros. So we need 352 00:17:45,840 --> 00:17:47,880 Speaker 1: to bring the mood in here to you need. 353 00:17:47,840 --> 00:17:49,760 Speaker 4: To bring the mood down. What are some things we 354 00:17:49,800 --> 00:17:51,920 Speaker 4: need to consider when it comes to novated lea. 355 00:17:52,119 --> 00:17:54,320 Speaker 1: So the first thing I'd want you to consider is 356 00:17:54,359 --> 00:17:57,760 Speaker 1: that if you are going to change employer or change 357 00:17:57,760 --> 00:18:00,439 Speaker 1: your job or stop working, the responsibility for making the 358 00:18:00,520 --> 00:18:04,080 Speaker 1: repayments that still remains with you shall remain with the 359 00:18:04,119 --> 00:18:06,760 Speaker 1: employer you set it up with. You might be able 360 00:18:06,760 --> 00:18:09,840 Speaker 1: to transfer your lease to a new employer if they 361 00:18:09,920 --> 00:18:12,639 Speaker 1: actually offer novated leasing, and it is a bit of 362 00:18:12,640 --> 00:18:15,240 Speaker 1: work to set it up. But you might also want 363 00:18:15,280 --> 00:18:18,000 Speaker 1: to just take over the repayments completely, which would mean 364 00:18:18,040 --> 00:18:20,480 Speaker 1: that they are no longer pre tax than our post tax. 365 00:18:20,640 --> 00:18:22,240 Speaker 1: But you can just keep paying off the lease. It 366 00:18:22,320 --> 00:18:25,920 Speaker 1: just means it would be more expensive technically, gotcha. When 367 00:18:25,920 --> 00:18:28,480 Speaker 1: you have a car under a novated lease with your employer, 368 00:18:28,680 --> 00:18:32,160 Speaker 1: the federal government considers it to be a fringe benefit, 369 00:18:32,600 --> 00:18:36,680 Speaker 1: so then fringe benefits tax might apply. So while employers 370 00:18:36,680 --> 00:18:39,840 Speaker 1: are liable to pay fringe benefits tax, in the case 371 00:18:39,880 --> 00:18:43,159 Speaker 1: of novated leases, this cost is generally then passed on 372 00:18:43,240 --> 00:18:47,000 Speaker 1: to you to pay from your pre tax salary because 373 00:18:47,000 --> 00:18:48,880 Speaker 1: the employers are kind of like, well, this is all 374 00:18:48,880 --> 00:18:51,959 Speaker 1: benefiting you. Why would we pay a different tax on 375 00:18:52,000 --> 00:18:54,800 Speaker 1: your behalf when it's you incurring it directly because you 376 00:18:54,840 --> 00:18:58,000 Speaker 1: wanted a car. It's also really important to understand how 377 00:18:58,119 --> 00:19:01,880 Speaker 1: this and any other financial imployers arising from entering into 378 00:19:01,920 --> 00:19:04,480 Speaker 1: an ovated lease can impact you. So I guess my 379 00:19:04,600 --> 00:19:07,199 Speaker 1: last point, Slash, it's not a con but it's a 380 00:19:07,240 --> 00:19:09,440 Speaker 1: point is if you're going to do it, please just 381 00:19:09,480 --> 00:19:12,439 Speaker 1: talk to your accountant or a financial advisor or someone 382 00:19:12,480 --> 00:19:13,840 Speaker 1: in the know so that you can look at all 383 00:19:13,880 --> 00:19:16,360 Speaker 1: the personal pros and cons and what it actually means 384 00:19:16,400 --> 00:19:19,199 Speaker 1: for your financial situation, because, as I said, I just 385 00:19:19,200 --> 00:19:21,960 Speaker 1: think people get a bit like really excited about it 386 00:19:22,000 --> 00:19:25,480 Speaker 1: because it's such an attractive option and like obviously, innovated 387 00:19:25,560 --> 00:19:27,480 Speaker 1: leasing companies have spent a lot of money on their 388 00:19:27,480 --> 00:19:29,800 Speaker 1: marketing to be like, Beck, this is such a tax 389 00:19:29,800 --> 00:19:33,000 Speaker 1: effective thing for you. You're basically making money and then 390 00:19:33,280 --> 00:19:35,360 Speaker 1: does look pretty sweet. Yeah, but then you go down 391 00:19:35,400 --> 00:19:38,240 Speaker 1: to Toyota or whatever. We're not sponsored by Toyoda. I 392 00:19:38,320 --> 00:19:41,080 Speaker 1: walk past a Toyota dealership most days, so it's just 393 00:19:41,119 --> 00:19:44,879 Speaker 1: like the one in my fresh haird right. Anyway, you 394 00:19:44,920 --> 00:19:47,480 Speaker 1: go down to Toyota and like maybe you had planned 395 00:19:47,520 --> 00:19:50,359 Speaker 1: to get like you know, the base model of like 396 00:19:50,440 --> 00:19:54,040 Speaker 1: a camera or something that makes sense for your financial situation. 397 00:19:54,600 --> 00:19:56,560 Speaker 1: Then you're kind of like, oh, what's the matter, Like, 398 00:19:56,680 --> 00:19:59,520 Speaker 1: let's get the luxe version I deserve it. Yeah, it's 399 00:19:59,520 --> 00:20:02,840 Speaker 1: all online. Thenovated lease anyway, sure doesn't matter, does it 400 00:20:02,920 --> 00:20:05,960 Speaker 1: back or come out in the wash? No, We're making 401 00:20:06,000 --> 00:20:10,040 Speaker 1: financial decisions that ultimately impact your ability to create financial freedom, 402 00:20:10,080 --> 00:20:12,840 Speaker 1: and that's important to understand. It's a really good place 403 00:20:12,920 --> 00:20:15,399 Speaker 1: to go on a quick break, A little quick break 404 00:20:15,440 --> 00:20:15,960 Speaker 1: after the break. 405 00:20:15,960 --> 00:20:18,080 Speaker 4: I have some questions about how the discounts work and 406 00:20:18,119 --> 00:20:19,240 Speaker 4: many other things. 407 00:20:19,280 --> 00:20:27,200 Speaker 1: Sexy, let's go. I'm quite all right, v we are back. 408 00:20:28,200 --> 00:20:30,240 Speaker 1: This is I'm the only one excited to be back 409 00:20:30,320 --> 00:20:31,120 Speaker 1: in this room. 410 00:20:32,160 --> 00:20:34,840 Speaker 4: So I'm actually excited about this part. I have to 411 00:20:34,880 --> 00:20:37,360 Speaker 4: be honest because we're talking about discounts. Yeah, I knew 412 00:20:37,359 --> 00:20:38,800 Speaker 4: that to get you, so I put it right at 413 00:20:38,840 --> 00:20:39,400 Speaker 4: the top hooks. 414 00:20:39,440 --> 00:20:42,600 Speaker 1: I didn't sinker. Don't you do anything for you? Honestly? 415 00:20:43,200 --> 00:20:46,919 Speaker 1: What discounts can you get? All right? So, as I 416 00:20:46,920 --> 00:20:49,080 Speaker 1: said before, you're not going to pay GST on the 417 00:20:49,080 --> 00:20:52,719 Speaker 1: purchase price of the vehicle, which is approximately ten thousand dollars, 418 00:20:52,760 --> 00:20:54,639 Speaker 1: So this can save You've done the mass up to 419 00:20:55,200 --> 00:20:57,600 Speaker 1: one hundred and ninety one dollars in the financial year 420 00:20:57,600 --> 00:21:00,679 Speaker 1: of twenty twenty three twenty twenty four. Obviously, different financial 421 00:21:00,720 --> 00:21:03,200 Speaker 1: years are going to be different, so diy your own 422 00:21:03,359 --> 00:21:05,679 Speaker 1: mats if the year is different to when you are 423 00:21:05,720 --> 00:21:09,440 Speaker 1: listening to this. Any car running costs that are included 424 00:21:09,520 --> 00:21:11,800 Speaker 1: will also be GST free, so you're not paying GST 425 00:21:11,920 --> 00:21:14,600 Speaker 1: on petrol, you're not paying it on servicing. It's like 426 00:21:14,600 --> 00:21:18,159 Speaker 1: a little ten percent discount right there. You'll be saving 427 00:21:18,200 --> 00:21:21,240 Speaker 1: on income tax by making novated lease payments from your 428 00:21:21,240 --> 00:21:25,560 Speaker 1: pre tax salary, so like salary sacrificing your car. And 429 00:21:25,680 --> 00:21:28,560 Speaker 1: if you're nervating an electric vehicle or plug in hybrid, 430 00:21:28,680 --> 00:21:30,480 Speaker 1: see this is where people are going to start justifying 431 00:21:30,520 --> 00:21:36,119 Speaker 1: Tesla's beck. Obviously, up to the luxury car threshold, you 432 00:21:36,200 --> 00:21:39,080 Speaker 1: won't be subject to fringe benefits tax or FBT on 433 00:21:39,119 --> 00:21:41,280 Speaker 1: your lease. So that's what we said before. You could 434 00:21:41,800 --> 00:21:44,960 Speaker 1: if you buy a hybrid vehicle or electric vehicle. Sure, 435 00:21:45,160 --> 00:21:45,720 Speaker 1: well there you go. 436 00:21:45,880 --> 00:21:50,160 Speaker 4: Okay, So how do you salary package fuel and services. 437 00:21:50,359 --> 00:21:54,360 Speaker 1: So this is called a fully novated lease. So there's 438 00:21:54,440 --> 00:21:56,840 Speaker 1: like anovated lease, and then there's like the fully novated lease. 439 00:21:56,920 --> 00:21:59,320 Speaker 1: So sometimes you might just have the car like it's 440 00:21:59,359 --> 00:22:00,919 Speaker 1: up to you to get your insurance and pay for 441 00:22:00,960 --> 00:22:03,800 Speaker 1: petrol and like your actual debit card. But the fully 442 00:22:04,080 --> 00:22:07,520 Speaker 1: novated lease means that under that part, apart from paying 443 00:22:07,560 --> 00:22:10,240 Speaker 1: for the car repayments, the employer would normally pay for 444 00:22:10,280 --> 00:22:13,040 Speaker 1: the car's running costs like fuel and maintenance and registration 445 00:22:13,119 --> 00:22:16,560 Speaker 1: and car insurance. And it's like then all combined into 446 00:22:16,720 --> 00:22:20,280 Speaker 1: your lease repayments, so it's a set figure every single month. 447 00:22:20,560 --> 00:22:22,720 Speaker 1: And then for fuel, you get given what's called a 448 00:22:22,800 --> 00:22:25,760 Speaker 1: fuel card. So you might have heard of those before. 449 00:22:25,920 --> 00:22:28,399 Speaker 1: And it will depend on where you live as to 450 00:22:28,800 --> 00:22:30,800 Speaker 1: what service stations you can go to fill up, because 451 00:22:30,840 --> 00:22:33,040 Speaker 1: you'll need to pay for fuel from your fuel card 452 00:22:33,080 --> 00:22:35,840 Speaker 1: because it has the allocated pre tax dollars on it. 453 00:22:36,080 --> 00:22:38,720 Speaker 1: Oh okay, that's pretty fun. I wonder if you can 454 00:22:38,760 --> 00:22:41,040 Speaker 1: slip in a like cheeky little curly wurly while you're 455 00:22:41,040 --> 00:22:45,080 Speaker 1: at the chickau a little sausage roll, Oh, sausage roll card. 456 00:22:45,119 --> 00:22:47,600 Speaker 1: I'm just wanting to get the like ninety cent curly Welly. 457 00:22:47,600 --> 00:22:49,359 Speaker 1: Do you think curly wellies are still ninety cents? I 458 00:22:49,440 --> 00:22:49,720 Speaker 1: think so? 459 00:22:49,880 --> 00:22:50,040 Speaker 5: Yeah. 460 00:22:50,080 --> 00:22:51,840 Speaker 1: I reckon, I reckon it would be fair for them 461 00:22:51,880 --> 00:22:55,399 Speaker 1: to still be ninety cents. If they're not, let's talk. 462 00:22:55,520 --> 00:22:58,040 Speaker 1: If they're not, I will still buy them anyway. And 463 00:22:58,080 --> 00:22:59,879 Speaker 1: I just want to know, does this tie you to 464 00:23:00,160 --> 00:23:00,879 Speaker 1: your employer? 465 00:23:01,200 --> 00:23:01,360 Speaker 2: Ah? 466 00:23:01,440 --> 00:23:05,919 Speaker 1: Yes and no. Anvated lease is obviously only used by employees, 467 00:23:05,960 --> 00:23:09,160 Speaker 1: which means the lease agreement is actually tied to the employee, 468 00:23:09,200 --> 00:23:13,640 Speaker 1: not the employer. It's more about whether your new company 469 00:23:13,720 --> 00:23:16,600 Speaker 1: is going to offer novated leasing, which means they would 470 00:23:16,600 --> 00:23:20,960 Speaker 1: offer to pay your novated lease from your pre tax income, 471 00:23:21,000 --> 00:23:24,399 Speaker 1: which is obviously another admin hassle. It's something that not 472 00:23:24,520 --> 00:23:27,720 Speaker 1: every single employer offers. And if you leave your job 473 00:23:27,760 --> 00:23:30,440 Speaker 1: with a novated lease, the car will be what's called 474 00:23:30,480 --> 00:23:34,080 Speaker 1: denovated and you're going to make payments as you would 475 00:23:34,280 --> 00:23:37,000 Speaker 1: with a standard lease, from your own funds, so like 476 00:23:37,040 --> 00:23:41,119 Speaker 1: from your post tax income directly from your salary until 477 00:23:41,160 --> 00:23:44,440 Speaker 1: you're employed again and pay a salary if your employer 478 00:23:44,920 --> 00:23:47,720 Speaker 1: consents to, you know, putting your car or novated lease. 479 00:23:48,119 --> 00:23:49,920 Speaker 1: And if you find a job with an employer who 480 00:23:49,960 --> 00:23:52,000 Speaker 1: agrees to pay for a novated lease, you're going to 481 00:23:52,040 --> 00:23:55,000 Speaker 1: be able to what's called renovate your lease and then 482 00:23:55,000 --> 00:23:57,280 Speaker 1: continue to make payments as you did with your last job. 483 00:23:57,400 --> 00:23:59,399 Speaker 1: So no, it doesn't tie you to your job. It's 484 00:24:00,160 --> 00:24:02,720 Speaker 1: the tax free component might not be that attractive to 485 00:24:02,760 --> 00:24:04,560 Speaker 1: you if you have to pay it for any period 486 00:24:04,640 --> 00:24:04,960 Speaker 1: of time. 487 00:24:05,400 --> 00:24:05,680 Speaker 2: Yeah. 488 00:24:05,720 --> 00:24:08,359 Speaker 1: Wow, so many play on words in this. Yes, sorry, 489 00:24:08,359 --> 00:24:09,400 Speaker 1: I'm trying my custardy. 490 00:24:09,440 --> 00:24:13,240 Speaker 4: If clean and clear is possible, a great job. I 491 00:24:13,359 --> 00:24:15,000 Speaker 4: do want to know, though, V what happens when you 492 00:24:15,000 --> 00:24:16,720 Speaker 4: get to the end of the lease, or if you 493 00:24:16,760 --> 00:24:19,399 Speaker 4: want to cancel it in the middle. So when the 494 00:24:19,520 --> 00:24:22,080 Speaker 4: end of an ovated lease happens, typically you have three 495 00:24:22,160 --> 00:24:25,960 Speaker 4: different options. So you could pay the residual and then 496 00:24:26,000 --> 00:24:28,960 Speaker 4: you own the car outright. Your tax benefits cease then 497 00:24:29,040 --> 00:24:31,119 Speaker 4: because it's then owned in your personal name. It is 498 00:24:31,160 --> 00:24:33,560 Speaker 4: your personal asset to run. Nobody else is going to 499 00:24:33,600 --> 00:24:36,480 Speaker 4: be giving you some tax benefits for that. The second 500 00:24:36,520 --> 00:24:40,280 Speaker 4: option BECK is refinancing the residual value to continue using 501 00:24:40,320 --> 00:24:42,520 Speaker 4: the car. You know, let's pretend you're three year lease 502 00:24:42,640 --> 00:24:45,680 Speaker 4: ended and you're like, okay, cool, but I really want 503 00:24:45,680 --> 00:24:47,560 Speaker 4: to keep the car, don't really want to pay it 504 00:24:47,560 --> 00:24:49,600 Speaker 4: out because I either don't have the funds or actually 505 00:24:49,600 --> 00:24:51,720 Speaker 4: still want the tax benefits of it. Can I keep 506 00:24:51,720 --> 00:24:53,560 Speaker 4: paying it off in the same way that I am. 507 00:24:53,760 --> 00:24:56,720 Speaker 4: Let's you know, do a longer lease period, renew it 508 00:24:57,080 --> 00:25:01,280 Speaker 4: same car, let's go and it continues off. Or you 509 00:25:01,320 --> 00:25:03,879 Speaker 4: could trade that cut in and upgrade to a new 510 00:25:03,960 --> 00:25:07,240 Speaker 4: vehicle and enter into a fresh please agreement. And that's 511 00:25:07,320 --> 00:25:10,000 Speaker 4: where I think it's a slippery slope because I look 512 00:25:10,000 --> 00:25:11,560 Speaker 4: at it and I go I know that it was 513 00:25:11,600 --> 00:25:14,679 Speaker 4: like beneficial for the first couple of years because like 514 00:25:14,920 --> 00:25:17,040 Speaker 4: you're paying off this car rah rah. But if you 515 00:25:17,119 --> 00:25:20,520 Speaker 4: then renew it every single three year period, or you know, 516 00:25:20,600 --> 00:25:22,080 Speaker 4: you might have a five or a seven year period, 517 00:25:22,119 --> 00:25:24,920 Speaker 4: it really depends on like what agreement you've entered into. 518 00:25:25,240 --> 00:25:27,280 Speaker 4: It's kind of like, you know, when we talked about 519 00:25:27,560 --> 00:25:31,040 Speaker 4: a thirty year term on a mortgage and I'm like, 520 00:25:31,080 --> 00:25:33,600 Speaker 4: all right, well, let's say you've got a five hundred 521 00:25:33,640 --> 00:25:37,560 Speaker 4: thousand dollar house and at the end of your thirty years, 522 00:25:37,640 --> 00:25:41,640 Speaker 4: Beck owns one hundred percent of that property because you're 523 00:25:41,640 --> 00:25:44,760 Speaker 4: paying your principal and interest off, right, So it gets 524 00:25:44,760 --> 00:25:47,000 Speaker 4: to five years and you go and sit down with Kate, 525 00:25:47,200 --> 00:25:50,760 Speaker 4: your Zella money broker, and Kate says, all right, well, 526 00:25:50,800 --> 00:25:54,320 Speaker 4: let's refinance. Thankfully, Kate's really smart because she's a Zello 527 00:25:54,359 --> 00:25:57,240 Speaker 4: money broker, and like, we literally care so much about 528 00:25:57,280 --> 00:25:59,959 Speaker 4: your financial futures that we would never let you reset 529 00:26:00,080 --> 00:26:02,720 Speaker 4: that term. Sure, we would always go Okay, instead of 530 00:26:02,760 --> 00:26:04,680 Speaker 4: re entering into a thirty year term, we're going to 531 00:26:04,760 --> 00:26:06,760 Speaker 4: enter you into a twenty five year term for this. 532 00:26:07,040 --> 00:26:09,760 Speaker 4: We're obviously going to reset, you know, your interest rate, 533 00:26:09,800 --> 00:26:11,639 Speaker 4: you know, bring it down a little bit, but we 534 00:26:11,720 --> 00:26:13,639 Speaker 4: really don't want you to have to redo that five. 535 00:26:13,600 --> 00:26:16,040 Speaker 1: Years that you've already been paying your property off. So 536 00:26:16,119 --> 00:26:18,840 Speaker 1: we're going to just set this term over twenty five years, 537 00:26:18,920 --> 00:26:20,639 Speaker 1: so that in that same thirty year period, you're going 538 00:26:20,640 --> 00:26:23,280 Speaker 1: to end up with one hundred percent of this property. Okay. 539 00:26:23,440 --> 00:26:26,439 Speaker 1: Whereas with car loans, if you get three years in 540 00:26:26,800 --> 00:26:29,320 Speaker 1: and then you say, hey, Beck, one new one going 541 00:26:29,359 --> 00:26:31,600 Speaker 1: to go upgrade, you go back to the very start 542 00:26:31,640 --> 00:26:34,320 Speaker 1: and you start paying off another car. Sure, you're never 543 00:26:34,359 --> 00:26:37,120 Speaker 1: going to own one hundred percent of that asset. Yet 544 00:26:37,160 --> 00:26:40,919 Speaker 1: you're paying thousands of dollars towards this asset for the 545 00:26:40,960 --> 00:26:43,840 Speaker 1: privilege of driving it, but never fully owning it. I 546 00:26:43,840 --> 00:26:46,919 Speaker 1: don't know, a waste. Hey, that's where we're trying to go. 547 00:26:47,359 --> 00:26:50,040 Speaker 1: I see, I see, I see. I'm not saying it 548 00:26:50,119 --> 00:26:52,880 Speaker 1: is a waste. It can be very constructive. As we've said, 549 00:26:52,920 --> 00:26:55,520 Speaker 1: there's so many benefits to it. But I think we 550 00:26:55,600 --> 00:26:59,240 Speaker 1: need to balance those benefits and go, well, actually, what's 551 00:26:59,280 --> 00:27:01,320 Speaker 1: the ultimate out? Sure, because like if I set you 552 00:27:01,400 --> 00:27:03,160 Speaker 1: down and go, Beck, well you know you need a car, 553 00:27:03,440 --> 00:27:05,960 Speaker 1: and you go yeah, absolutely, like V it's not an option. 554 00:27:06,119 --> 00:27:08,160 Speaker 1: I have to get from A to B. I need 555 00:27:08,200 --> 00:27:11,280 Speaker 1: a car. I've looked at every other options and horse 556 00:27:11,480 --> 00:27:14,200 Speaker 1: is not going to work. I can't ride a kangaroo 557 00:27:14,240 --> 00:27:17,480 Speaker 1: to work every day. Like, it's just not gonna work, okay, right, 558 00:27:17,560 --> 00:27:22,040 Speaker 1: non negotiable. Beck acquires car? Yes, but Beck, what's the 559 00:27:22,119 --> 00:27:25,040 Speaker 1: long term goal with that car? Like, you're gonna have 560 00:27:25,080 --> 00:27:27,159 Speaker 1: to get from A to B. Yes, I guess for 561 00:27:27,200 --> 00:27:29,680 Speaker 1: the next thirty or forty years, because it's gonna keep working. Right, 562 00:27:29,760 --> 00:27:33,240 Speaker 1: So car might be completely necessary. You drive to Sydney 563 00:27:33,359 --> 00:27:35,840 Speaker 1: Fair a bit, so, like that's important that you have 564 00:27:35,960 --> 00:27:37,920 Speaker 1: access to a car. So it's not that you're gonna 565 00:27:37,920 --> 00:27:40,800 Speaker 1: have the car for the three years, right, You're hopefully 566 00:27:40,840 --> 00:27:42,720 Speaker 1: going to be a car owner for the rest of 567 00:27:42,760 --> 00:27:47,240 Speaker 1: your life or as long as your license allows you, 568 00:27:47,240 --> 00:27:50,119 Speaker 1: you know what I mean? Like, why are we only 569 00:27:50,160 --> 00:27:53,840 Speaker 1: looking at the first three years when you know tax 570 00:27:54,280 --> 00:27:57,720 Speaker 1: efficiency means that yes, it is the most beneficial tax 571 00:27:57,880 --> 00:28:00,440 Speaker 1: option in the short term, but in the long term, 572 00:28:00,480 --> 00:28:02,200 Speaker 1: is it not better to buy one car, pay it 573 00:28:02,240 --> 00:28:04,560 Speaker 1: off completely and have these costs coming out of your 574 00:28:04,560 --> 00:28:07,200 Speaker 1: post tax income and not be paying a consistent lease 575 00:28:07,440 --> 00:28:10,800 Speaker 1: for a brand new vehicle. Yeah. So I think it's 576 00:28:10,880 --> 00:28:14,800 Speaker 1: just really important to understand why we might make these decisions. Okay, 577 00:28:14,920 --> 00:28:16,760 Speaker 1: in the short term and in the long term, like 578 00:28:16,840 --> 00:28:18,320 Speaker 1: you might go, you know what, I've looked at this, 579 00:28:18,400 --> 00:28:20,959 Speaker 1: and anvated lease really works for me because I actually 580 00:28:21,000 --> 00:28:23,680 Speaker 1: don't own a car at all at the moment. These 581 00:28:23,720 --> 00:28:25,679 Speaker 1: tax benefits are going to really work for me. I'm 582 00:28:25,720 --> 00:28:28,159 Speaker 1: going to get this novated lease. I'm going to you know, 583 00:28:28,440 --> 00:28:30,960 Speaker 1: paid off for three years. In three years, they're going 584 00:28:31,000 --> 00:28:33,560 Speaker 1: to offer me the opportunity to pay the residual value 585 00:28:33,560 --> 00:28:35,879 Speaker 1: on the car, because like, oh, can we renegotiate that, 586 00:28:36,000 --> 00:28:37,800 Speaker 1: just stretch it out a bit further. I'll pay more off, 587 00:28:37,880 --> 00:28:39,680 Speaker 1: but I want the tax benefits. So you stretch it 588 00:28:39,720 --> 00:28:41,280 Speaker 1: out for another three years. You show a car for 589 00:28:41,320 --> 00:28:45,320 Speaker 1: six years, car's basically completely paid off. Now you decide 590 00:28:45,320 --> 00:28:46,840 Speaker 1: to put that in your personal name and go, you 591 00:28:46,880 --> 00:28:48,680 Speaker 1: know what, we had a really good run. I was 592 00:28:48,720 --> 00:28:51,320 Speaker 1: paying for fuel and stuff out of my pre tax income. 593 00:28:51,400 --> 00:28:54,000 Speaker 1: Now it's out of my post tax income. But I 594 00:28:54,000 --> 00:28:56,800 Speaker 1: don't have a car repayment anymore, so actually have a 595 00:28:56,800 --> 00:29:00,200 Speaker 1: lot more money to play with. Gotcha. Okay, But what 596 00:29:00,240 --> 00:29:01,720 Speaker 1: happens if you want to cancel in the middle of 597 00:29:01,720 --> 00:29:04,160 Speaker 1: a lease? All right, So if you want to cancel 598 00:29:04,200 --> 00:29:05,800 Speaker 1: in the middle of the lease, you essentially have to 599 00:29:05,840 --> 00:29:09,560 Speaker 1: pay out your lease early. Just like in any lease contract, 600 00:29:09,600 --> 00:29:12,720 Speaker 1: you'll have like a get out of jail early clause. Right, 601 00:29:12,960 --> 00:29:15,120 Speaker 1: So when you take on an ovated lease, you agree 602 00:29:15,200 --> 00:29:17,360 Speaker 1: to lease the vehicle for a set period of time, 603 00:29:17,400 --> 00:29:18,960 Speaker 1: and then if you break the lease early, you're going 604 00:29:19,040 --> 00:29:21,240 Speaker 1: to have to pay the remainder left on the lease 605 00:29:21,600 --> 00:29:26,880 Speaker 1: along with the residual value of the vehicle including gst Okay, 606 00:29:27,080 --> 00:29:28,800 Speaker 1: So if you want to get out of it early, 607 00:29:29,120 --> 00:29:32,240 Speaker 1: it might not be the best financial decision because it 608 00:29:32,320 --> 00:29:35,040 Speaker 1: might actually cost you a bit more. Sure, but you've 609 00:29:35,040 --> 00:29:36,680 Speaker 1: just got to be careful read all your terms and 610 00:29:36,720 --> 00:29:39,600 Speaker 1: conditions and make sure that you understand all the t's 611 00:29:39,600 --> 00:29:42,320 Speaker 1: and season fees involved. Huh, I'm just really good at 612 00:29:42,360 --> 00:29:44,440 Speaker 1: reading ads. You've done that. 613 00:29:44,960 --> 00:29:45,360 Speaker 2: I've tried. 614 00:29:45,440 --> 00:29:48,920 Speaker 1: I've tried my best, So say anything else I should consider. Look, 615 00:29:48,960 --> 00:29:51,160 Speaker 1: there's a whole heap. I'm just going to list off 616 00:29:51,200 --> 00:29:54,200 Speaker 1: a few. Obviously, understand your income. You need to make 617 00:29:54,240 --> 00:29:57,200 Speaker 1: sure that the income tax savings will actually be enough 618 00:29:57,200 --> 00:29:59,480 Speaker 1: to offset the cost of the lease. So, for example, 619 00:29:59,680 --> 00:30:02,040 Speaker 1: it might not actually makes sense for people on lower 620 00:30:02,200 --> 00:30:05,160 Speaker 1: incomes to do this because it's like, well, the benefits 621 00:30:05,160 --> 00:30:08,000 Speaker 1: are negligible, what kind of vehicle are you actually going 622 00:30:08,040 --> 00:30:11,080 Speaker 1: to lease? So, as we said before, novaded leases are 623 00:30:11,080 --> 00:30:13,640 Speaker 1: particularly attractive for people who want to buy like electric 624 00:30:13,680 --> 00:30:16,400 Speaker 1: Vickles are hybrids, because you get out of the FBT, 625 00:30:16,640 --> 00:30:19,040 Speaker 1: which is kind of attractive because they now have that 626 00:30:19,160 --> 00:30:21,800 Speaker 1: exemption as long as the value of the car is 627 00:30:21,840 --> 00:30:25,200 Speaker 1: below what's called the luxury car tax threshold for fuel 628 00:30:25,200 --> 00:30:28,040 Speaker 1: efficient vehicles, which this year in the twenty twenty three 629 00:30:28,080 --> 00:30:31,280 Speaker 1: twenty twenty four tax year is eighty nine, three hundred 630 00:30:31,280 --> 00:30:33,720 Speaker 1: and thirty two dollars, which is so much money for 631 00:30:33,800 --> 00:30:34,160 Speaker 1: a car. 632 00:30:34,280 --> 00:30:41,600 Speaker 4: Beck, Yeah, And obviously this considerably boosts novaded least tax savings. Yeah, okay, okay, 633 00:30:41,640 --> 00:30:44,080 Speaker 4: I got you when it comes to how many kilometers 634 00:30:44,120 --> 00:30:46,240 Speaker 4: you're going to be driving on this. So generally, people 635 00:30:46,240 --> 00:30:48,040 Speaker 4: who use their car a lot are going to get 636 00:30:48,080 --> 00:30:50,800 Speaker 4: a whole heap more benefits through saving on fuel and 637 00:30:50,840 --> 00:30:53,280 Speaker 4: other running costs, including part of the lease. 638 00:30:53,600 --> 00:30:57,440 Speaker 1: So I've worked with clients where it actually genuinely makes 639 00:30:57,720 --> 00:31:00,760 Speaker 1: financial sense for them to consistently have an ovated lease. 640 00:31:00,920 --> 00:31:04,080 Speaker 1: Good example, they're a BDM for financial advisors. Their job 641 00:31:04,320 --> 00:31:07,120 Speaker 1: is to drive around all the financial advisors in the 642 00:31:07,200 --> 00:31:09,760 Speaker 1: state that they manage. So they go from their house 643 00:31:09,800 --> 00:31:11,880 Speaker 1: every single day. They might come into the city and 644 00:31:11,920 --> 00:31:13,840 Speaker 1: go to the office. They might then go out to 645 00:31:14,240 --> 00:31:16,040 Speaker 1: you know, none a Wadding and then they might be 646 00:31:16,080 --> 00:31:18,720 Speaker 1: in Dandingong, and then they might be over in elston Wick, 647 00:31:18,800 --> 00:31:20,960 Speaker 1: and like they drive around the city a lot. In 648 00:31:21,000 --> 00:31:24,600 Speaker 1: these circumstances, anvated lease might make sense because you're putting 649 00:31:24,640 --> 00:31:27,800 Speaker 1: your car through a lot. There's obviously a lot of 650 00:31:27,840 --> 00:31:30,560 Speaker 1: wear and tear happening on their car. There's obviously a 651 00:31:30,560 --> 00:31:33,120 Speaker 1: lot of fuel costs in that circumstance, and that could 652 00:31:33,120 --> 00:31:37,800 Speaker 1: actually make sense as a part of that salary conversation 653 00:31:37,880 --> 00:31:40,000 Speaker 1: when you go, hold on like this is actually more 654 00:31:40,040 --> 00:31:42,120 Speaker 1: of a work vehicle than it is actually just like 655 00:31:42,160 --> 00:31:45,160 Speaker 1: a I really wanted to drive a Tesla, got a situation, 656 00:31:45,280 --> 00:31:48,280 Speaker 1: you know, gotcha? So the purchase price of the vehicle 657 00:31:48,280 --> 00:31:50,440 Speaker 1: we also want to look at, So like too low, 658 00:31:50,520 --> 00:31:53,040 Speaker 1: the GST savings might not be enough to offset the 659 00:31:53,120 --> 00:31:56,000 Speaker 1: lease costs. But then too high and the savings as 660 00:31:56,000 --> 00:31:59,040 Speaker 1: a percentage of the vehicle's value will become very low. 661 00:31:59,480 --> 00:32:02,840 Speaker 1: And mistake to avoid there is buying a more expensive 662 00:32:02,840 --> 00:32:06,400 Speaker 1: bigle than you need in an attempt to maximize tax savings. 663 00:32:06,480 --> 00:32:09,480 Speaker 1: Gotcha cut that out. Don't do don't do that, don't 664 00:32:09,520 --> 00:32:12,640 Speaker 1: do that. We need to understand lease costs, so innovated 665 00:32:12,720 --> 00:32:14,880 Speaker 1: lease will work best if you can get a deal 666 00:32:14,960 --> 00:32:18,280 Speaker 1: with a competitive interest rate and low lease fees. So, 667 00:32:18,320 --> 00:32:20,360 Speaker 1: as I said before, we need to understand our t's 668 00:32:20,400 --> 00:32:24,880 Speaker 1: and season fees. Don't agree to anything without that. And 669 00:32:24,960 --> 00:32:28,480 Speaker 1: obviously we need to understand things like administration fees that 670 00:32:28,520 --> 00:32:30,760 Speaker 1: are going to be charged by the lease company, not 671 00:32:31,120 --> 00:32:35,240 Speaker 1: just your competitive interest right. Understand what the least term is. 672 00:32:35,560 --> 00:32:38,120 Speaker 1: So similar to other kinds of finance, you could reduce 673 00:32:38,160 --> 00:32:41,160 Speaker 1: your interest or other costs by choosing a shorter term. 674 00:32:41,440 --> 00:32:43,040 Speaker 1: So you might be offered a seven year lease, go 675 00:32:43,360 --> 00:32:45,240 Speaker 1: what would it look like over three? What would it 676 00:32:45,280 --> 00:32:47,520 Speaker 1: look like over five? Can you will afford that? Does 677 00:32:47,560 --> 00:32:50,320 Speaker 1: that make sense for you? And a smarter proach I've 678 00:32:50,320 --> 00:32:52,880 Speaker 1: scene for some people is to choose the shortest term 679 00:32:52,920 --> 00:32:56,080 Speaker 1: possible while maximizing the percentage of the vehicle you pay 680 00:32:56,120 --> 00:32:58,160 Speaker 1: off by the end of the term, and then do 681 00:32:58,240 --> 00:33:01,080 Speaker 1: it across as many financial years as possible, so you're 682 00:33:01,120 --> 00:33:04,560 Speaker 1: maximizing tax savings. That is so clever. I've talked about 683 00:33:04,640 --> 00:33:07,280 Speaker 1: nervatedly sing a million times before with like friends and 684 00:33:07,320 --> 00:33:09,160 Speaker 1: family and trying to understand it. And I think the 685 00:33:09,160 --> 00:33:11,160 Speaker 1: one thing that I really want you to understand is 686 00:33:11,200 --> 00:33:14,840 Speaker 1: that nervatedly thing makes sense. Yeah, Like, I've just explained 687 00:33:14,880 --> 00:33:17,800 Speaker 1: it all. They are obvious pros and obvious cons. Sure, 688 00:33:17,920 --> 00:33:19,880 Speaker 1: but the thing I don't want you to get stuck 689 00:33:19,920 --> 00:33:24,720 Speaker 1: on is justifying a more expensive purchase because it's better 690 00:33:24,720 --> 00:33:27,320 Speaker 1: for tax. Right, So we're not going to. 691 00:33:27,240 --> 00:33:27,960 Speaker 5: Do that, are we back? 692 00:33:28,120 --> 00:33:30,920 Speaker 4: No, We're not going to do that. This is definitely 693 00:33:30,920 --> 00:33:33,080 Speaker 4: a lot of information. If I were a listener, I 694 00:33:33,080 --> 00:33:34,360 Speaker 4: would listen twice. 695 00:33:34,040 --> 00:33:37,960 Speaker 1: In a row. Just so not you dirty, dirty liar, 696 00:33:38,520 --> 00:33:40,640 Speaker 1: I am not. You are, little fibber. 697 00:33:41,280 --> 00:33:44,280 Speaker 4: Just in case you need to, we are here for you. 698 00:33:44,440 --> 00:33:46,640 Speaker 4: This is a lot of information taken. Go absorb it 699 00:33:47,200 --> 00:33:47,840 Speaker 4: and have. 700 00:33:47,880 --> 00:33:58,120 Speaker 1: The best week of weekday? Bye? Guys, did buy shared 701 00:33:58,160 --> 00:33:58,680 Speaker 1: on cheese? 702 00:33:58,680 --> 00:34:01,680 Speaker 5: On the Money is generally and does not consider your 703 00:34:01,680 --> 00:34:06,120 Speaker 5: individual circumstances. She's on the Money exists purely for educational 704 00:34:06,160 --> 00:34:08,640 Speaker 5: purposes and should not be relied upon to make an 705 00:34:08,640 --> 00:34:11,960 Speaker 5: investment or financial decision. If you do choose to buy 706 00:34:11,960 --> 00:34:16,600 Speaker 5: a financial product, read the PDS, TMD and obtain appropriate financial. 707 00:34:16,160 --> 00:34:17,960 Speaker 1: Advice tailored towards your needs. 708 00:34:18,320 --> 00:34:22,240 Speaker 5: Victoria Divine and She's on the Money are authorized representatives 709 00:34:22,280 --> 00:34:26,399 Speaker 5: of Money Sherpa pty Ltd ABN three two one six 710 00:34:26,480 --> 00:34:30,359 Speaker 5: four nine two seven seven zero eight AFSL four five 711 00:34:30,480 --> 00:34:34,120 Speaker 5: one two eight nine