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I work for a small business. Can I still do a novated lease?

By June 1, 2021August 18th, 2021No Comments

Many employees are under the impression that only Government and large corporate companies can offer a novated lease to their workforce. This is simply not the case. Employees of small to medium size businesses, commonly called SMEs are able to set up a novated lease and partake in the tax savings also.

With the labour market becoming tighter over the first half of 2021 due to a falling unemployment rate, many employers are looking for a way to increase employee net remuneration without increasing cost. The novated lease is a key way to do this and has no direct cost to the employer. As an employee, you will get all the benefits of the novation such as the income tax, fleet purchase price and gst savings.

Positive Salary Packaging has systems in place to make this easier for your employer. With a no risk, no FBT and best of all a “set and forget” option to limit the paperwork and administration. Our systems can work directly with all the major accounting software systems such as Xero and MYOB to ensure that you accountant, finance or payroll person doesn’t need to spend a great deal of time in setup or the ongoing deductions.

When setting up initial deductions, our Operations Manager can offer to help with the initial process to establish. Positive Salary Packaging can also supply a handy guide to ensure that you have all the necessary information in regards to risk reduction, process and accounting requirements. By offering a benefit to private travel, your employer will be able to offer the benefit to other staff members on their existing vehicle or when they are ready to purchase or upgrade their current vehicle to ensure they too can reduce the amount of tax they pay.

If you are wanting to start a novated lease and not sure where to start, speak to the team at Positive Salary Packaging and we can do all the leg work with your employer to ensure you get on the road for less.

Positive Salary Packaging is here to help drive your income further.