Join hundreds of Australian businesses who choose flexible and affordable car subscription over the long term commitment of a traditional car leasing or novated leasing.
carbar offers more than just your standard business car subscription. Choose to subscribe to a fleet of vehicles or potentially pass tax-effective benefits to employees by salary sacrificing a novated car subscription.
We believe that the way you access cars should flex with your business needs.
In the past, many Australian business owners have turned to car leasing or long term rentals as the solution for their business needs.
Flexible car subscription services offer all the benefits of owning or leasing vehicles without the long term commitment.
For a fixed weekly subscription fee, members get full possession of a vehicle or fleet of vehicles inclusive of insurance, registration, servicing and roadside assistance.*
There’s no lock-in contracts or hidden costs. Stop or swap with two week’s notice.
* In certain circumstances we may need to swap your car (e.g. if there is a maintenance or other issue) – in which case we will, subject to availability, try to replace the car with an equivalent car. See Terms and conditions for more details.
* In certain circumstances we may need to swap your car (e.g. if there is a maintenance or other issue) – in which case we will, subject to availability, try to replace the car with an equivalent car. See terms and conditions for more details.
car subscription for business
Car subscription presents a better way to get ‘maximum mileage’ out of a car.
Changes to accounting standards mean that any car loan is considered a non-deductible capital expense, car subscriptions sit purely as an operating expense, so if using carbar for Business, you could see an immediate benefit to your bottomline*.
A car subscription offers businesses a more affordable and flexible way of packaging the costs of car ownership, so you will have all the perks of car ownership without the admin and unexpected bills. You can stop or swap a car subscription with just two weeks notice. That’s less than most jobs, and certainly less taxing than leasing.
AASB 16 – issued by the Australian Accounting Standards Board in February 2016 - defines new rules for how leases are to be treated during the accounting process, requiring most leases to be recorded on the balance sheet.
With a carbar car subscription, your business is able to keep its current vehicle fleet off the balance sheet and enjoy the associated tax benefits, while still providing your staff with the freedom to use vehicles for both business and personal purposes*.
There are pros and cons to subscribing to a car for business or personal use. Here are some things to consider:
If you subscribe to a car for business, you may be able to write off the cost of the subscription as a business expense. This may help reduce your taxable income, which could save you money in the long run*.
However, if you subscribe to a car for personal use, you may be able to use it for personal purposes as well as business purposes. This can save you time and money since you won’t have to swap cars when running personal errands.
Ultimately, the choice between subscribing to a car for business or personal use depends on your individual circumstances. If you are employed, self-employed or a business owner, it may be worthwhile speaking to your accountant to find out what’s right for you.
You can definitely salary sacrifice a car subscription.
In fact, it's a great way to save money on GST and your monthly car payments. When you salary sacrifice you pay for your car subscription through payroll using a combination of pre and post tax income. The amount you sacrifice will be determined by your employer and your personal circumstances*.
There are a few reasons why a business car subscription may be cheaper than a personal car subscription.
A business is able to take advantage of certain tax benefits that an individual cannot. For example, a business may be able to write off the cost of the car subscription as a business expense, while an individual cannot. Businesses don't pay GST and they may also be able to claim the car as a business asset for tax purposes, while an individual is not able to.
IAG is the name behind some of the most trusted and respected insurance brands in the regions in which it operates. Its businesses have helped people recover from natural disasters, accidents and loss since 1851.
IAG’s businesses underwrite over $11billion of premium per annum, selling insurance under many leading brands including NRMA Insurance, CGU, SGIO, SGIC, Swann Insurance and WFI (Australia); and NZI, State, AMI and Lumley Insurance (New Zealand).
Standard & Poor’s has assigned a ‘Very Strong’ Insurer Financial Strength Rating of ‘AA-‘ to the Group’s core operating subsidiaries.