Finding good staff and being able to retain them is often a difficult task. By offering incentives to employees, your company becomes attractive and therefore you are more likely to attract and retain staff. By offering your employees a novated lease option for their vehicle it means they can finance their car from their pre-tax income. This is a way of salary sacrifice. A novated lease can also be used as a means of financing their partner’s car, which in turn becomes financed from their pre-tax income. By saving your employees thousands of dollars in tax each year, you become an attractive means of employment.

Employees like to salary package their vehicles because it means they can use their own vehicle as a means of transport, rather than relying on a company car that is often used by other staff members. As such, the employee is able to obtain the car that they desire, rather than fitting into company guidelines. If the employee does terminate their employment they are able to retain their vehicle. They have the choice of leasing their car through their new employer (if available continuing with the repayments themselves, or offering the car to the finance company for buyback. This also proves attractive to employers as they do not need to retain cars once employees leave. This negates the need for excess company cars to be kept in stock.

As part of salary packaging a vehicle the employee may also choose to take out a fully maintained novated lease. This means that the running costs of the vehicle, such as servicing, fuel and tyres are paid for from their pre-tax income. The tax savings literally do add up. Employers are no longer required to maintain company cars as this is a huge expense on the company books. As you can see, offering salary sacrificing techniques to your employees is beneficial to both employees and employers alike.