Employee Benefits

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)
Under the REWARDS™ novated lease your employer pays your lease payment out of 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)
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
REWARDS™ purchasing power is passed on to you through our preferred supplier network including preferential rates.

Negotiated Parts and Labour Rates
REWARDS™ offers you access to discounts across a range of goods and services including vehicle servicing, maintenance, tyres, batteries and windscreens.

We don’t just pay vehicle related expenses; we control them by pre-authorising maintenance and repair work and reducing the risk of over servicing. We are confident that our superior service offering means superior savings for you.

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.

Novated Lease Articles
Answers to commonly asked questions about the REWARDS™ novated lease
Easy to understand explanations of common terms used in the novated lease industry
A novated lease with no retained interest charges can save you $1,000's
Understanding the effect of Fringe Benefits Tax (FBT) on your novated lease
A REWARDS™ novated lease can save employers time and money