Salary packaging is an Australian Taxation Office approved means of allowing you to effectively restructure your income.

Employees can choose to receive their salary as a combination of cash and approved benefits. These benefits are either tax free or taxed at concessional rates. Replacing some of your cash salary with benefits enables you to lower their taxable income to increase your take home pay.

Income Tax and Fringe Benefits Tax (FBT) – with a novated lease your employer pays your lease payment from your pre-tax salary, this is known as salary sacrificing. As lease payments are being paid from your pre-tax salary, your employer is liable to pay FBT on the vehicle being provided to you under the novated lease. The amount of the FBT is generally charged back to you through additional pre-tax salary deductions.

The savings achieved by a novated lease arise when there is less FBT payable than income tax that would have been payable were there no salary sacrifice.

Goods & Service Tax (GST) – the GST is payable on the purchase price of a vehicle as well as most vehicle related expenses. The financer is entitled to claim an input tax credit up to the depreciation limit of the vehicle (currently $57,123), which means the maximum input tax credit claimable is $5,193.

Your lease payments are calculated on the vehicle purchase price less the GST. In addition, as most employers are entitled to claim input tax credits for the GST paid on the lease payments and other vehicle related expenses, by using a novated lease, further savings can realised.

Vehicle purchase price savings – our purchasing power is passed on to you through our preferred supplier network including preferential rates.

Vehicle choice – the freedom to choose a vehicle to suit your lifestyle needs. Subject to your employer guidelines, you may salary package more than one vehicle.

Flexible lease term – you have the flexibility to choose a novated lease term to suit your circumstances.

Portability – the lease is transferable between employers.