The term „novated lease“ is sometimes used to refer to the entire package. This can lead to confusion, as the lease is only one element of the agreement and the agreement itself is not a lease agreement. Similarly, the terms „Novated lease company,“ „Lease company“ and „Leasing company“ are sometimes used to refer to a wage packaging management company that manages a wage packaging agreement, not to the financial firm that is in fact the lessor. This confusion extends to the terms used by wage packing companies to describe different wage packaging agreements that involve an innovative lease. The third type of leasing is described as novated finance lease or non-maintained novated lease, in which only the innovative lease is a salary, none of the other operating costs, such as fuel, insurance or maintenance, being paid by the employer.  This plan is of minor or no use to the worker because the value of the ancillary benefit does not change, as it is based on the original purchase price, but all tax benefits on other operating costs are lost, since it is not a salary. The effect of the payment of the FBT or the use of ECM offsets most or all of the potential tax benefits derived from the wage packaging of leases. During the term of the newly created rental agreement, the employer is entitled to a deduction for rental costs if the car is made available under an agreement on wage victims (up to the limit of the luxury car). But it translates into an automobile advantage under the rules of the Marginal Performance Tax (FBT). In the United Kingdom, a newly leased lease relates to a lease agreement that has been transferred to a third party with the agreement of the lender, the original taker and the future taker.
The transfer of responsibility for the lease between two legal entities is usually covered by a tripartite contract. With regard to wage packaging, an employer undertakes to provide its employees with lower benefits in order to reduce the income tax paid by the worker on that wage, while providing the same net benefit. A new lease agreement is a way to allow the worker to use a vehicle using wage packaging without the employer actually having to own the vehicle and allowing the vehicle to move from one employer to another, with the employee responsible for the transaction. Ancillary benefits under the FBT plan may be granted directly by the employer, by an „associate“ of the employer or by a third party who has entered into an agreement with the employer (in this case the financial provider). A car provided by a novated lease is considered an ancillary benefit for a worker and entails an FBT liability for the employer. Although a new lease agreement does not have to be part of a content packaging agreement, it is unlikely to be used outside such an agreement, otherwise there is no reason for the third party to assume the obligations. advertising by employment rate packaging suppliers, which highlight the tax advantages of a packaged rental contract, highlighting the tax advantages of a packaged lease, which are out of sight of rent reduction/reduction and the obvious understanding of the actual operation of packaging, may encourage workers to rent vehicles that cost well in excess of what they would normally spend, or to constantly rotate leases with the mistaken impression that their cost is equivalent to or less than that of their existing car. In Australia, in-kind benefits granted to a worker are considered incidental and employers must pay an ancillary benefit tax (FBT) on the value of these benefits at a rate corresponding to the highest marginal tax rate. After the renewal of the lease, the employer now takes over the operation of the vehicle, the employee`s use of this vehicle is an incidental benefit.