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Novated leasing as
an employee benefit?

There’s no FBT, reduced payroll tax, and minimal administration.

Resources for Finance Departments

If you’re about to introduce novated leasing to your organisation but you’re concerned about FBT, increased administration or anything at all – stop. Give us a call and we’ll talk you through it first. Or to find out more right now, help yourself to the following resources.

1. Quantify the reduction in payroll tax thanks to novated leasing

When an employee novates a car it reduces their taxable income and the organisation’s ‘total Australian wages’ base – the figure that payroll tax is calculated on. This also has an effect on worker’s compensation premiums, and you can see the bottom line benefit below.

Bottom line 5 Car Fleet 50 Car Fleet

Payroll Tax Savings P.A.

$3,213

$32,133

Workers’ Compensation Premium Base Rate Savings P.A.

$1,952

$19,516

Total Savings to Bottom Line P.A.

$5,165

$51,649

*Based on NSW payroll tax rate of 5.45% P.A, and workers’ compensation premium rate of 3.31%

The above savings are real, and although there’s evidence to suggest employee benefits help increase engagement, leading to greater profitability, it’s a link that is difficult to prove. We can, however, forecast your company’s reduction in payroll tax and worker’s compensation premiums, with a Total-Annual-Value Report™, tailored to your organisation.

Get started now

2. Replace company cars with novated leasing and eliminate FBT

Managing a fleet of company vehicles can be a costly enterprise. A lesson many learned when they retrenched hundreds of employees during the GFC, leaving them with a parking lot full of vehicles. Novated leasing could have prevented this from happening, but making the transition is not quite as easy as it sounds. At least not without the right strategy and experience.

There are three steps you need to take to avoid excess costs, and make sure the process goes a smoothly as possible.

  1. Define your fleet
    Some vehicles may be better off remaining company owned, or leased.
  2. Determine the costs and compensation levels
    Car allowance or salary increase? How much?
  3. Pick the right time
    Timing can help you avoid excess costs.

We’ve created a guide that gives you more information, and takes you through the whole process.

Download now

3. Car finance options for businesses

The options listed here all serve a purpose, and are useful for different vehicle and business requirements. What’s critical is making sure you make the right decision, for the right vehicle.

Novated leasing

Company owned
Company leased (operating leases)

Car allowances


How can we help?

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