This document is designed to assist in understanding what happens with an early lease termination.
Easi Provides you with the following documents for completion:
1. Early Termination Payout Letter for the Vehicle Finance
2. Early Termination Form
Paying Out The Finance
The Early Termination Letter outlines the vehicle finance payout figure required to end the leasing arrangement.
This figure is calculated as follows :
A. Residual Value Owing at the end of the lease (inc GST)
B. Number of Finance Lease Instalments Remaining X Finance Lease Rental (inc GST)
C. Any applicable discounts available
(A+B-C) = Early Termination Amount Required.
Important to note, all values are calculated including GST. This is because when you leave the salary packaging benefit of a novated lease, the ATO now requires you to pay GST.
The Payout letter will provide Banking Details with where to pay the balance to and where to email the confirmation of payment to ensure funds are promptly allocated.
Service Account
The Novated Service account where your pre-tax funds for Fuel, Servicing, Registration, Insurance and other maintenance items is reconciled separately from the finance payout.
Once your lease has been terminated, all associated services are cancelled on the same date.
- Your Fuel Card will be terminated.
- If you have Fleet Insurance arranged through Easi with Mercurien this will be terminated.
- If you have Roadside Assistance arranged through Easi with NRMA this will be terminated.
Reconciliation of Service Account
45 days post termination your lease service account will then be reconciled.
The reason for waiting 45 days is to allow all funds from your employer to be allocated and all outstanding service invoices and fuel transactions from the fuel card provider to be allocated.
Once reconciled, and Surplus funds are then returned to you via your employers payroll where they are taxed and provided to you. This is an ATO requirement, we cannot transfer funds directly to you untaxed.
Surplus funds cannot be directly offset against your finance payout, the ATO requires us to refund via your employer.