What does salary packaging mean for employers?

Offering a salary packaging program to your employees not only provides benefits at no extra cost to your organisation, but also positions you as an employer of choice.

Organisations we work with report increased employee retention and enhanced recruitment.

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Why should you inquire about Novated leasing with Positive?

Are you ready to revolutionise the way your employees perceive their benefits package? Unlock the key to increased job satisfaction, retention, and productivity with Novated leasing from Positive!

Contact us now and discover how our Novated leasing solutions can elevate your employee benefits to new heights! Together, let’s drive towards a brighter future!

Frequently Asked Questions

What is a Novated Lease, and how does it work?

A Novated Lease is a salary packaging arrangement where an employee leases a vehicle of their choice. The lease payments are deducted from the employee’s pre-tax salary, and the employer assumes the responsibility of making these payments on behalf of the employee.

Why should my company offer Novated Leases to employees?

Offering Novated Leases can be a powerful tool to attract and retain top talent within your organization. It provides employees with a tax-efficient way to access a new vehicle, promoting employee satisfaction and improving engagement.

How can Novated Leases help attract and retain top talent?

Novated Leases are a highly sought-after employee benefit, especially among those who value having a new car and desire tax advantages through salary packaging. By offering this benefit, your company can stand out from competitors and enhance employee loyalty.

Are Novated Leases only beneficial for employees, or does it provide advantages for the employer too?

Novated Leases offer advantages to both employees and employers. Employees can save on income tax, while employers can leverage this attractive benefit to enhance their overall employee value proposition, thus contributing to talent attraction and retention.

Is there any cost for the employer to set up a Novated Lease program?

Generally, there is no cost for the employer to set up a Novated Lease program. Reputable Novated Lease providers handle most of the administrative tasks and associated costs.

Can all employees participate in the Novated Lease program?

In most cases, all permanent and full-time employees are eligible to participate in the Novated Lease program. Some providers may extend the program to part-time and casual employees, depending on the company’s policy.

How does the Novated Lease process impact the employer's payroll and administration?

Positive Salary Packaging typically manages the payroll deductions and administration of the lease, minimizing the impact on the employer’s payroll and HR departments. The provider ensures a smooth and streamlined process for both the employer and employees.

Will offering Novated Leases to employees increase the administrative burden on the HR or finance team?

No, with Positive Salary Packaging, the administrative burden should be minimal for the HR and finance teams. Most of the responsibilities are taken care of by the provider, allowing your HR and finance teams to focus on other essential tasks.

Are there any tax benefits for the employer in providing Novated Leases to staff?

Yes, employers can potentially access certain tax benefits by offering Novated Leases, such as reducing payroll tax liabilities. It’s advisable to consult with a tax expert to understand the specific advantages for your company.

How does the Novated Lease affect the company's Fringe Benefits Tax (FBT) obligations?

Under a Novated Lease arrangement, the FBT liability typically shifts from the employer to the employee, as the employee assumes responsibility for the car fringe benefits. This can reduce the employer’s FBT liability.

Can employees choose any vehicle they want, or are there limitations?

In most cases, employees have the flexibility to choose the vehicle that best suits their needs and preferences, as long as it meets the criteria set Positive Salary Packaging.

What are the potential savings for employees through a Novated Lease compared to traditional car finance?

Employees can save on income tax by paying for the lease with pre-tax salary, reducing their taxable income. Additionally, they may benefit from discounts on the vehicle’s purchase price, fuel, and maintenance expenses.

How can we educate our employees about the benefits of Novated Leases?

Positive Salary Packaging offers educational materials and workshops to help employees understand the advantages of Novated Leases. Employers can also organize informational sessions to answer questions and clarify doubts.

What role does Positive Salary Packaging play in supporting the employer and employees throughout the process?

Positive Salary Packaging handles administrative tasks, offers customer support, provides guidance during the vehicle selection process, and assists with lease-related matters throughout the term of the agreement. They are a valuable resource for both employers and employees.

Are there any reporting and compliance requirements for the employer in relation to the Novated Lease program?

The Novated Lease provider typically takes care of the reporting and compliance requirements, ensuring that all necessary documentation is completed accurately and on time. This further reduces the burden on the employer.

Can employees transfer their Novated Lease to a new employer if they leave the company?

Yes, employees have the option to transfer their Novated Lease to a new employer if the new employer agrees to participate in the Novated Lease program.

How do we handle Novated Leases for part-time or casual employees?

Part-time and casual employees can usually participate in the Novated Lease program if they meet certain criteria. The Novated Lease provider can guide both the employer and employee through the process.

What happens if an employee leaves the company with an existing Novated Lease?

If an employee leaves the company, they have the option to transfer the Novated Lease to a new employer or continue the lease as an individual. Alternatively, the lease can be terminated, and the employee returns to regular vehicle financing.

How often can employees update their Novated Lease vehicle?

The frequency of updating a Novated Lease vehicle may depend on the lease term and the company’s policies. Usually, employees can update their vehicle when they enter a new lease agreement.

Are there any restrictions on the type or brand of vehicles eligible for Novated Leases?

Positive Salary Packaging will have certain criteria regarding the age and type of vehicles eligible for Novated Leases. Typically, new and used vehicles in good condition are eligible.

Can employees include additional costs such as insurance and maintenance in their Novated Lease?

Yes, employees can include additional costs like comprehensive insurance, registration, fuel, and maintenance in their Novated Lease payments.

What support does Positive Salary Packaging offer to employees for vehicle servicing and maintenance?

Positive Salary Packaging may offer access to a network of authorized service centers and maintenance facilities, making it convenient for employees to get their vehicles serviced and repaired.

How long does the Novated Lease process usually take, from application to vehicle delivery?

The duration of the Novated Lease process may vary, but with an efficient provider, it typically takes a few weeks from application to vehicle delivery.

Can employees purchase the leased vehicle at the end of the Novated Lease term, and how is the price determined?

Yes, employees can typically purchase the leased vehicle at the end of the lease term. The price is determined by the residual value agreed upon at the start of the lease, and it is usually influenced by the vehicle’s age, condition, and market value at that time.

Please note that the answers provided here are general in nature, and the specific details and terms may vary depending on the Novated Lease company’s policies and offerings. Employers and employees should seek detailed information from Positive Salary Packaging for their specific situation.

Are there any termination fees for employees who wish to end their Novated Lease early?

Yes, there might be termination fees associated with ending a Novated Lease early. These fees vary depending on the terms of the lease agreement.


Positive Salary Packaging integrates with a variety of accounting software. No matter if you’re using Xero, MYOB, QuickBooks or another system, the Positive team ensures a simple ‘set and forget’ setup and integration.

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The Positive team is here to answer your and your employees questions. We understand that concerns and questions arise when it comes to salary packaging, and we’re by your side – online, over the phone or in-person.

Positive provides support before, during and after sales.

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