Car Loans

Retain and Attract

Attract and retain the best employees with an attractive novated lease remuneration package.

Greater flexibility and choice of motor vehicle for the employee means they are happier and get to drive the motor vehicle of their dreams. And at the same time, the employee receives a taxation benefit.

History

Salary packaging and novated leasing is becoming the benefit of choice for many employees. More and more companies are making it a centrepiece of their attraction strategy, but the concept still remains vague for some managers and business owners.

It takes more than just a good working environment and higher salaries to attract and retain good people. Companies wanting to become employers of choice are quickly discovering that they have to offer a range of benefits to stay competitive. Novated leasing is growing in popularity among job seekers and is becoming an important element in the strategy to attract the best staff.

A Novated lease is a remuneration structure where employees choose to forego a portion of their salary in order to receive taxation benefit of similar value from their employers. This is normally in form of a car which is to be paid out of the employees pre-tax salary.

In the past, a novated lease was the sole domain of top executives in "white collar" jobs. In recent years it has worked its way down the corporate ladder and a lot of employers now offer salary packaging or novated leasing to all staff who can afford it.

Employer Benefits

No Liability

Since the car lease agreement is under the employees name, the payment liability for the employer is only required during the employee's employment period. The overall liability and responsibility for the car lease is held by the employee, this means that the employer doesn't need to report the car lease on their "Balance sheet".

Retain and Attract

Greater flexibility and choice of motor vehicle for the employee means they are happier and get to drive the motor vehicle of their dreams. And at the same time, the employee receives a taxation benefit.

Attract and retain the best employees with an attractive novated lease remuneration package.

No Unwanted Motor Vehicles

If the employee leaves your employment, your business is not left with an unwanted motor vehicle.

Taxation Benefit

GST is charged on the monthly novated lease payment and as long as the employer is registered for GST, they can claim this back on their BAS.

Where the amount financed is below the Depreciation Limit ($57,180), the employer claims the novated lease payment as a business expense. Above the Depreciation Limit, they claim the interest charges and depreciation up to the value of the Depreciation Limit ($57,180).

You can reduce payroll tax, workers compensation premiums and possibly superannuation contributions.

No motor vehicle residual risk.

Low Administration

In most cases a vehicle management company takes care of the majority of paperwork and administration. Method's such as "Employee Contributions" can also eliminate any FBT liability to zero which may cut out any need for FBT reporting.

A novated lease also takes away the burden of managing a company motor vehicle fleet.

Want to know more?

Complete the friendly enquiry form and an experienced novated lease consultant from our network of brokers will contact you within 24 hours.