What is car
An employee benefit,that benefits the business.
Car salary packaging is where a novated lease is used to package all the costs of an employee’s car, into their salary. The employer pays for the car (finance, insurance, fuel, servicing & repairs) and then recovers the costs from the employee’s salary, much of it before tax. It’s the most financially powerful employee benefit around, and it can also reduce your company’s payroll tax, at no cost to the business.
If your employees receive a salary and pay tax through the PAYG system, then yes, they’re eligible to salary package their cars.