1300 889 669
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 organizations.
Car Packaging works in much the same way as other Salary Packaging – by paying for vehicle payments and running costs from the employee’s pre-tax salary (in part or wholly). 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.
Employees are also able to gain access to SPGs fleet buying power utilizing our parent company, Fleet Choice. The fleet discounts for virtually all new cars are significant. A no obligation fleet pricing service is available for employees to compare pricing.
Many employees appreciate the opportunity to drive their car of choice, best suited to their personal situation and needs.
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.
In the event of the employee moving to another organization 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.
Many organizations prefer to provide employees with the option of entering into a car packaging arrangement as opposed to a company car, thereby reducing their fleet, FBT and associated costs with cars on the balance sheet. SPG’s 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 maximize their tax savings.
By the way, this benefit is available in addition to the $16,050 Salary Packaging threshold for PBI employees.
Salary packaging a car is easier than you may think!
Contact our friendly Customer Service staff for more information on 1300 889 669