Associate Lease Agreement
When to Use this Agreement
Salary packaging is a popular method of tax minimisation and an Associate Lease can be part of that package.
An Associate Lease is a lease rental arrangement between an Employee, an Associate of the Employee and the Employer. In this arrangement the associate (often a family member , spouse or family company) is the owner of a motor vehicle. The Associate leases the vehicle to the employer who in turn provides this vehicle to the employee as a fully maintained company vehicle.
With an Associate Lease in place the tax office recognise the arrangement as an employer provided benefit under the Fringe Benefits Assessment Act and the Income Tax Assessment Act.
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The Contract includes the following provisions -
- Parties
- Motor vehicle
- Term
- Maintenance Costs
- Insurance
- Events Consituting Lessee's Default
- Termination
- Notices
- Applicable law
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