Assumptions

The calculations use the following assumptions

Annual kilometres

The split between commuting and other use is for your convenience only. It does not determine your eligibility for salary sacrifice.

Bicycle cost

The amount financed equals the recommended retail price of the ebike and an insurer-approved lock.

Cost comparison

The following assumptions have been used in the cost comparison.

• Cash purchase: the same package as the Sparque full-service lease, i.e., including insurance, service and maintenance and roadside assistance is acquired and paid for in cash.
• Myki subscription per day $5.18 (2018 figures)
• 2016 RACV figures for Ford Focus Trend 1.5L Turbo

Deposit rate

For the cash purchase comparison, a deposit interest rate of 3% has been used.

FBT liability

ATO ruling CR2020/68 should be used to determine whether your use of the ebike falls within the FBT exemption.

Gross annual income

The number you supplied is treated as gross salary, excluding superannuation and other salary packaging deductions, Medicare levy or HECS liability.

Insurance

The lease rate includes an indicative insurance premium for your bike and personal injury based on the details you supplied.

Maintenance

The maintenance costs are based on the nominated kilometres. Sparque assumes the risk on these costs, but reserves the right to adjust the costs during the term if the actual kilometres deviate from the nominated kilometres.

Tax

Income tax rates for the current financial year are used.

Term of finance

The term of finance is defined by the number of months you supplied. The residual value (inclusive of GST) at the end of the term is set by the ATO and equals

• 56.25% of the retail price (incl GST) for a 1 year term,
• 37.50% for a 2-year term,
• 18.75% for a 3-year term,
• 0% for a 4-year term.