27th March AMA: I'm Lana Graham, Xtools+ expert and product manager. Ask Me Anything!

Hi eliana.gonzalez , 

Such an innocent looking question, yet oh so deadly and detailed! 

Yes its about time we wrote a guide on this. I do love a complex model, so I'm going to attempt a quick and dirty guide for you below. 

I don’t know about Remserv, but I assume it would be similar to this example have from sg fleet. I’ve highlighted all the important details below.
 

Quick outline of steps:

1. Enter client salary of $89,000, however note that for the car lease scenario, some will be pretax, ie:
1. Model $257.50 pf as tax free income, ie $6,695 pa
2. Model the rest as taxable income, ie  $82,305 pa
3. There’s no need to model a fringe benefit as the post tax contribution offsets the FBT obligation.
4. You would need to end this after 5 years and then model it without the pre tax income.
5. Don’t forget to adjust your super guarantee to include the pre tax income.
2. Enter Lifestyle Asset/Car purchase $47,000
3. For Financing enter:
1. New 60 month loan for $42,728, interest rate 8.62%, repayments $718.50 pm ($8,622 pa). 
1. Remember there will be a residual. Go to the display page for the loan and enter a lump sum repayment of $13,221 at the end of the 5 years.
2. The upfront GST saving of $4,272. Enter this as a once-off tax free income at the start of the lease.
4. Now you need to model the other costs. They total $619.04 per fortnight ($16,095 per annum). We’ve already modelled the lease repayments, so now we just model the other Vehicle costs, which will be $16,095 - $8,622). So enter Post Tax Vehicle expenses of $7,473 pa. 

Please give that a whirl and come back to me with any questions - we may need to fix up a detail or 2.