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Novated car leasing, also known as salary sacrifice car leasing, benefits you by making the most of your pre-tax dollars.
Car ownership can be a significant financial commitment when you factor in repayments, running expenses, and unexpected repairs. But what if there were a way to make it more cost-effective?
Novated lease arrangements allow you to purchase a vehicle using pre-tax income, helping you reduce your taxable income while enjoying the convenience of bundled car expenses. By opting for a novated lease, you can choose a brand-new car, or quality used car, that suits your needs and save money on tax and running costs in the process.
Curious about your potential savings? Calculate your existing running costs and see the difference.
Discover the smarter way to drive – start your novated leasing journey today!
Novated leasing is a straightforward and tax-effective way for employees to lease a vehicle through their employer with the assistance of experienced novated lease providers, like us here at Salary Packaging Australia (S.P.A.).
You can reduce your taxable income and enjoy significant financial benefits by following these steps:
This arrangement also benefits your employer, helping them support valued employees and boost staff retention.
Novated Leasing gives you a brand new car at a fantastic purchase price, and allows you to include many of the running costs in your pre-tax income.
Access a wide selection of brand-new vehicles at competitive fleet prices, eliminating the need to negotiate with car dealers or search extensively. We even handle all the paperwork for you, ensuring a hassle-free process.
Salary Packaging Australia are experts in providing comprehensive novated leasing and salary packaging solutions for employers and employees nationwide.
We take care of every detail for both you and your employer, including vehicle sourcing, financing, insurance, servicing, and more. With our expertise as a novated lease company, you enjoy the benefits of a new car, significant income tax savings, and a streamlined process. Meanwhile, your employer gains a valuable tool to support and retain their workforce.
Experience the smarter way to manage salary packaging with S.P.A. Save time with a novation agreement and lease a car stress free.
Put simply, a novated lease is a financial arrangement between you (the employee), your employer, and a finance company. You secure financing to purchase a car, and your employer deducts your lease payments directly from your salary through a combination of pre-tax and post-tax contributions (unless the car is an electric vehicle, which qualifies for full pre-tax deductions). This salary packaging arrangement can reduce your taxable income and provide significant savings.
No, you do not need to be using your car for business purposes to benefit from salary packaging/novated lease. A novated lease allows you to finance a car through a combination of pre-tax and post-tax salary deductions, regardless of whether it’s used for personal or work-related travel. This means you can enjoy the tax benefits of salary packaging even if you only use the vehicle for private purposes.
The main advantage of a novated lease for employees is the potential tax savings they can make under a novated lease arrangement. These savings will be different for everybody and we urge you to contact our experienced team to discuss your options.
For employers, offering their staff the ability to salary sacrifice a new car, can help with attracting new hires, and retaining current valued employees.
A car under a novated lease is considered a fringe benefit because your lease payments are made using your pre-tax income through salary packaging. Since the vehicle can be used for personal travel, it is subject to Fringe Benefits Tax (FBT). However, the tax benefits of a novated lease can often offset the impact of FBT, helping you save overall.
Employers must account for and pay the FBT on the vehicle benefit provided to the employee. However, the costs are usually recovered through the employee’s salary deductions.
At Salary Packaging Australia, we pride ourselves on handling fringe benefit taxable products properly and compliantly, ensuring the employer’s tax and the employee’s income tax is not negatively impacted.
Yes. A salary packaging car lease does not necessarily need to be a brand new car. Some restrictions will apply to the purchase of a used vehicle through a novated lease program. Our team will be able to assist you when you are ready.
If you leave your workplace before the lease has expired, simply contact us and we can help set you up your vehicle salary packaging with your new employer.
The choice is yours! There are generally very few restrictions on the type of car you can package. At S.P.A., we have built relationships with dealers across Australia to get you the best deal on your new car purchase. The vehicle’s purchase price must be under the luxury car tax threshold to be considered for a novated lease agreement.
Considering an EV? Visit our Electric Vehicle Novated Lease page.
Yes, of course. Car lease salary packaging, or a novated lease, is simply a financially beneficial way for some people to purchase a car. Because the car is yours and registered in your name, who you let drive your car is your decision!
To get an indication of your potential savings, you can use our online calculator. However, to gain a better understanding of the potential savings you can make, contact our friendly S.P.A. team for an obligation free consultation.
At the end of your lease you have a number of options available to you to meet your residual.
The residual value (sometimes called a balloon payment) is the portion of the car that is not repaid during the term of the lease. S.P.A. will contact you prior to the completion of your lease to assist you with your options.
The residual amount is set by the ATO and is determined by the length of your lease. Your lease term can range from 1 year to 5 years. You will know exactly how much your residual value is before you commence your lease.
When you choose to salary package with S.P.A., you will receive a Motorpass card to pay for your running costs such as fuel, tyres and servicing. The Motorpass card is accepted at 97% of fuel providers in Australia. The Motorpass card can also be used for servicing and purchasing tyres at selected retail outlets.
The convenience of the Motorpass card allows your purchase to be deducted directly from your salary packaging account without sending through invoices for reimbursement.
You still have the choice and flexibility to shop around and use your own service centre without using the retailers aligned with Motorpass. You simply pay for these and forward on your proof of payment and we will reimburse you out of your salary packaging account.
If you lose your card, contact us immediately on 1300 786 664 we will cancel your old card and reissue you with a new one.
See how S.P.A. can help decrease your expenditure while saving you income tax and GST each pay cycle.
Contact our team directly, we are here to help
Contact our team, we are here to help