The benefits of salary packaging cars

Salary packaging cars with novated leases is the most financially rewarding benefit available for employer and employee alike.

Both parties are rewarded by a reduction in tax, and the business also benefits by having a host of employees delighted with their increase in disposable income.

Here are just a few reasons to offer salary packaging to your employees:

  1. The average Autopian driver benefits by over $10,000* a year in the form of a gross pay rise, at no cost to the business.
  2. When an employee enters into a novated lease agreement, their taxable income reduces, which in turn reduces the organisations payroll tax and workers' compensation premium. So the more employees who salary package their cars, the greater the tax savings for everybody.
  3. Most organisations’ are already offering some form of salary sacrifice vehicle benefit. Those that don’t may experience recruitment and retention difficulties in a competitive market, unless they’re prepared to pay at least $10k more salary than everyone else in their industry.
  4. It’s free! The business doesn’t pay a cent. Employees pay for the service out of their greatly increased tax savings.

So why isn’t every company offering car salary packaging?

Discover the most common misconceptions around novated leases.
Find out exactly what a novated lease is.

*gross pay rise based on FBT1112 - $10,065.16

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Engagement, Retention and Profitability

This Report shows you how to demonstrate the direct link between engagement, novated leasing and profitability.

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