Salary Packaging for
Employers

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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