Setting Up Novated Lease

A novated lease is a motor vehicle lease that has been novated, that is, the obligations in the contract have been transferred from one party to another which means that your employer is a party to your purchasing agreement, and allows you to pay for your vehicle as part of your salary package by paying your car payments for you out of your pre-tax earnings.

To Setup Novated Lease In Wagemaster 

1. Setup a Pre-Tax Deduction Allowance by navigating to Setup > Allowances. 

   
   
2. Click Add and the Allowances wizard will appear. 
   
3. Select Next at the Welcome to the Allowance Wizard screen. 
   
   
4. Choose Standard Allowance.
    
   
5. Click Next.
6. Complete the Allowance Details.
   
   • Description: Enter a description of the allowance.
   • Type: Select it as a deduction.
   • Amount: Enter the allowance amount.
   • Minimum: Leave as $0.
   • Maximum: Leave as $0.
   • Frequency: Select how this allowance is paid (eg each pay period, hourly, each shift, etc).
   • Taxed: Check this box to be taxed.
   • Include in SG Gross: If you want this deduction to reduce the employee's SG gross (superable earnings), tick the Include in SG Gross box.
   • Include in Super Calculation: Check if the allowances super are to be paid on this amount. 
     
     Please Note
     Be careful ticking the Include in Super Calculations and Include in SG Gross boxes, in the case of a deduction, as it will reduce an employee’s superannuation and superable earnings.
   • This deduction setup specifically reduces their taxable or gross income. This is a salary sacrifice and often a part of salary packages. On the payslip:

     • Gross (Taxable) pay will reduce.

     • Tax will reduce.

     • Net pay will reduce.

7. At the ATO Payment Summary screen, make your selection. We recommend you check with your accountant if the allowances need to be shown on the following:
   • The ATO Payment Summary.
   • Reported in STP.
   • ATO Allowance type (i.e.: car, transport, meals, travel).
   • If none of the above, leave both options unchecked.
8. Leave as default because you are using Agrimaster as the accounting system - the allowance account Code can be set in Agrimaster. Click Next. 
   

   

9. Select Finish to confirm the new allowance created. 
   
   
10. The Allowance screen will list the newly created allowance. Click Close to complete the process.
    
11. Click close to save. 
12. Attach this allowance to the employee record.
13. Your payslip will look as below. 
14. In Agrimaster, before importing the transaction you will need to complete payroll configuration in Agrimaster for newly created allowances to ensure these transactions are coded correctly in your cashbook. 
15. Your imported transaction in Agrimaster will look as below.
16. For making the motor vehicle payment, you will need to create a manual transaction with the same Codes which will look as below.