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RavinaP's avatar
RavinaP
10 days ago

Novated Lease

Hi, I have entered a Novated Lease as a Pre-Tax deduction. However when we process the payroll PAYG is calculated on the Gross amount. Novated Lease should reduce your Gross income hence PAYG should be reduced. Can someone advise how to fix this?

  • Doreen_P's avatar
    Doreen_P
    MYOB Moderator
    10 days ago

    Hello RavinaP,

     

    A novated lease set up as a pre-tax deduction should reduce gross income and PAYG when set up correctly. Since deduction isn't reducing the PAYG as expected, it's best to review the set up with your accountant or bookkeeper.

     

    Cheers,

    Doreen

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