It is quite common these days for business to offer salary packaging to their employees. It is a great way to retain staff and attract prospective employees. Salary packaging is whereby a piece of equipment such as a vehicle, laptop or phone is financed and the repayments are deducted from your pre-tax income. This is a tax effective method of financing work related items.

If you choose to finance your vehicle through a novated lease you have the option to salary sacrifice the repayments only. However you may opt to take out a fully maintained novated lease whereby the repayments and full running costs of the vehicle, such as servicing and fuel are taken from your pre-tax income.