What is Salary Packaging?
Salary packaging, sometimes referred to as Salary Sacrificing, is an Australian Tax Office (ATO) approved way of receiving benefits, such as motor vehicles, self-education expenses, airport lounge membership and many more, by way of a pre-tax deduction. You pay for these benefits before you get taxed and then get taxed on your remaining income. This means you pay less tax!
Dependent on your employer and location, you may be able to Salary Package these benefits:
Salary Packaging/Salary Sacrifice Benefits
Vehicles
Superannuation
Insurance
Education
Work Equipment
Mortgage
LAFHA
Rent
Memberships
FIFO
DIDO
Relocation
How does Salary Packaging work?
Salary packaging allows you to pay for certain benefit items with pre-tax dollars. You pay for these items BEFORE you get taxed. You then get taxed on your remaining income; therefore you will pay LESS tax!
By salary packaging you are restructuring the way you get paid to maximise your income and pay less tax.
When you commence salary packaging, your payroll department sends the nominated funds to SPA for disbursement to pay for your benefit item/s.
What is a Novated Lease?
A Novated lease is a tax effective way to purchase your next car. A Novated lease allows you to pay for a proportion of the lease and running costs with PRE-TAX dollars. This means you can make significant savings on your next vehicle purchase. These running costs include:
Running costs included in my Novated Lease
Fuel
Lease
Repayments
Tyres
Servicing
Registration
Insurance
Roadside Assist
Novated Lease Frequently Asked Questions
How much can I save by Salary Packaging?
Your individual circumstances will determine how much you can save when salary packaging. An average tax saving for a novated lease is about $2500 per year compared to privately financing the vehicle.
To find out how much you can save call SPA today on
1300 786 664 for an obligation free quote.
I only drive a small amount of kilometres per year, is a novated lease for me?
Changes to FBT legislation mean that there is one flat rate of FBT applied to a novated lease. This means that just about everyone can benefit from a novated lease now.
What if I change jobs during my lease?
Your lease can be transferred to your new employer. Your new employer is eligible to offer salary packaging to its employees. If they don’t already offer salary packaging, SPA can help them set it up.
What happens at the end of the lease?
1. Keep the car
Pay out the residual
2. Sell the car privately
Sell the car and keep any of the profits and start a new lease
3. Trade in the car
Trade in the car and start a new lease
4. Extend the lease
Continue to lease the car with a new residual and lease repayments
Are you really getting the best deal for your Novated Lease?
Compare your existing Novated Lease quote and see how much more you can save with SPA. When it comes to getting the best deal on your next salary packaged vehicle, speak to your local SPA Business Relationship Manager today. SPA can provide you with an obligation free Novated Lease quote and finance options for your next salary packaged vehicle. With our extensive car dealer network, you get the best possible deal on a new car and the benefits of saving tax while you pay for it! It pays to compare your quote with SPA!
Why Choose Salary Packaging Australia?
Experience counts
With over 15 years experience in the salary packaging industry, you can trust SPA to provide you with a complete explanation of how salary packaging will potentially benefit you.
Our experience has proven that salary packaging is not a one size fits all benefit which is why we have dedicated Business Relationship Managers to answer any of your questions.
Our team can provide information sessions or conduct individual appointments to discuss your salary packaging requirements. Call 1300 786 664 to book an appointment with one of our Business Relationship Managers.
SPA specialise in providing simple salary packaging solutions for employees and employers. We can manage the salary packaging for your employer and can provide the following service to you:
• Manage the set up and explanation of salary packaging for all employees.
• Process any reimbursements and expense claims for employees
• Provide account balances for employees
• A dedicated BRM and Accounts team to answer any of your questions