Salary Packing a vehicle via a Novated Lease is an Australian Tax Office approved structure which has significant benefits to many employees across a wide spectrum of organisations.
Car Packaging works in much the same way as Salary Packaging – by paying for vehicle payments and running costs from the employee’s pre-tax salary.
Employees reduce their taxable income and therefore the amount of tax they pay each pay day, which increases their net pay, providing in effect a pay rise.
In addition to PAYG tax savings, employees benefit from significant GST savings on the purchase price of the vehicle and running costs of the car such as fuel, tyres, servicing etc.
Many employees appreciate the opportunity to drive their car of choice, best suited to their personal situation and needs
Employees are also able to gain access to Fleet Choice’s fleet buying power. The fleet discounts for virtually all new cars are significant. A no obligation fleet pricing service is available for employees to compare pricing.
Important to note the car is registered and insured in the employee’s name, no business use is required and the employee does not have to be the main driver.
Many organisations prefer to provide employees with the option of entering into a car packaging arrangement as opposed to a company car, thereby reducing the fleet, FBT and associated costs with cars on the balance sheet.
In the event of the employee moving to another organisation the cars stays with the employee. The new employer may take over the Novation or the driver simply continues with the finance arrangement until the end of the lease.
Fleet Choice role is to efficiently manage the administration and reporting for Novated Leasing to ensure the FBT risk is mitigated and mostly importantly all employees packaging is structured and monitored to maximise their tax savings.
Salary packaging a car is easier than you may think!
Please call FLEET CHOICE on toll free 1300 889 669