ATTRACT AND RETAIN TOP TALENT
Offer Novated Leasing To Enhance Employee Satisfaction & Boost Their Performance
Fast And Simple Process
Pay Nothing Extra
Boost Your Employees’ Productivity
How Novated Leasing Can Benefit Employers?
Are you an employer looking to enhance your employee compensation package without increasing your business costs? Novated Leasing is the way to go.
Here's why it can be beneficial for you →
Employee Attraction and Retention
Novated leasing is a highly sought-after benefit that can set you apart as an employer of choice. It not only helps you attract skilled professionals but also retains your existing talent by offering them a valuable financial perk.
Cost-Effective Benefit
Novated leasing doesn't cost your business anything. The administration is handled by a third-party provider, and the lease payments are deducted from employees' pre-tax salaries. It's a win-win for both your organization and your staff.
Competitive Edge
Offering novated leasing can give you a competitive edge in your industry. It shows that you're committed to supporting your employees' overall job satisfaction, which can enhance your reputation and performance in the marketplace.
Customisable Options
Novated leasing is flexible. Your employees can choose the vehicles that suit their needs and preferences, from fuel-efficient cars to electric vehicles or even luxury models. This flexibility ensures the benefit is appealing to a wide range of employees.
Employee Productivity
When your employees have reliable, cost-effective transportation, they can focus on their job without the stress of vehicle-related expenses. This can lead to improved job performance and productivity.
Why Offer Novated Leases?
Providing novated leasing options to your employees is a strategic move that enhances job satisfaction and loyalty. This benefit, often viewed as a high-value perk, can significantly impact employee retention and attraction, contributing to a stable and committed workforce. It also demonstrates an investment in the well-being and financial health of your employees, fostering a positive workplace culture and promoting long-term loyalty.
Your Two Easy Obligations as
a Novated Lease Employer
1. Facilitate Salary Packaging
Employers need to facilitate the salary packaging arrangement, allowing a portion of an employee’s pre-tax salary to be allocated towards the novated lease. This process involves minor administrative setup but yields significant benefits for both the employer and the employee.
2. Manage and Report
The second obligation involves the ongoing management of the novated lease arrangement, including deductions and reporting. Employers must ensure accurate and timely reporting to maintain compliance and facilitate the smooth operation of the leasing agreement.
Lease Company
Your Employee
You / The
Employer
You Make The Lease Payments On Behalf Of
Your Employee
How to set up novated leasing?
A Simple 3 Step Process
CONSULTATION:
Begin by scheduling a consultation with Novated Finance Australia. During this consultation, you'll receive all the necessary onboarding documentation to kickstart the process. We will guide you through the paperwork and ensure you have everything you need to proceed with setting up novated leases for your employees.
SETUP AND ONBOARDING:
Work closely with us to complete any required paperwork and input necessary details into your systems. This step ensures that all parties are aligned and ready to move forward with the novated leasing arrangements.
SELECT DELEGATE OF AUTHORITY:
As the final step, select a delegate of authority or designate a person within your organisation who will be responsible for signing the novated leases with the employees. This individual will act as the point of contact between your organisation and us, ensuring smooth communication and coordination throughout the process.
Unleash Employee Potential with Novated Leasing!
Novated Lease Case Study EV
Attention Employers: Save Thousands for Your Employees with Novated Leasing!
Are you looking for a simple yet impactful way to help your employees save big on their car finance? Novated leasing is the answer! Let's take a closer look at how it works through the story of Kate, a manager in a small accounting firm, and how her employer saved her over $55,000 on her dream car.
Meet Kate: Kate, a manager at a small accounting firm, had her eyes set on the new Kia EV 9. With a salary of $145,000 per year, she was keen to explore her options for purchasing the vehicle. After a chat with her local Kia dealer, Kate was quoted a hefty monthly car loan payment of $2,100.
Discovering the Novated Lease Advantage: Noticing an ad by Novated Finance Australia, Kate was intrigued by the significantly lower monthly payment of $1,076, inclusive of running costs. Curious about the difference, Kate inquired further and learned about the Novated Lease EV FBT exemption. This exemption allowed her to deduct vehicle finance and running costs against her pre-tax salary, eliminating the need to pay FBT. Additionally, the manufacturer had reduced the vehicle price for Novated lease customers to $89,300, falling under the FBT threshold amount.
Taking Action: Excited about the potential savings, Kate decided to proceed with the novated lease. She approached her employer, who completed a simple one-page onboarding form with Novated Finance Australia. Utilizing a provided pay advice, the employer informed payroll of the deduction each month. The setup was completed the same day, with no financial liability to the employer.
The Results: Over the 5-year lease term, Kate's employer saved her over $55,000, making her dream car more affordable than ever before. With Novated Leasing, Kate not only enjoyed significant financial savings but also experienced the convenience of bundled running costs and hassle-free payments.
Ready To Help Your
Employees Save?
Frequently Asked Questions
We've compiled a comprehensive list of common FAQs to guide you on your journey to offering Novated Leasing. If you don't find the answer you're looking for, our dedicated team is just a call away.
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A novated lease is a financial arrangement where an employee leases a vehicle using their pre-tax income, with the employer facilitating the lease payments as part of the employer salary sacrifice scheme. This agreement not only provides significant tax advantages to the employee but also presents novated lease benefits for the employer, enhancing their benefits package.
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Yes, an employer can pay a novated lease as part of a salary packaging agreement. Through this arrangement, the employer makes lease payments on behalf of the employee, directly from their pre-tax salary, which can lead to savings on payroll taxes and other financial benefits for both parties.
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As a novated lease employer, the organization is not typically liable for the lease itself. The liability rests with the employee. However, the employer does have obligations related to administering the lease payments as part of the salary packaging arrangement. Understanding novated lease employer obligations is crucial for compliance and smooth operation.
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Implementing a novated lease program can involve minimal costs for the organisation related to administrative setup and management. However, the novated lease employer cost is often offset by the benefits, including reduced payroll taxes and an enhanced ability to attract and retain employees.
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For employers, offering novated leases as part of a salary sacrifice arrangement can lead to favorable tax implications, such as reduced payroll tax obligations. This is because part of the employee’s salary is redirected towards the novated lease payment before tax is calculated, potentially lowering the taxable income.
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Yes, employees at various levels within the organisation can typically participate in the novated leasing program. It's a versatile benefit that can be tailored to suit the needs of different employees, making it an attractive option for many. However, the eligibility might vary based on the employer’s policy and the terms set by the Novated lease employer in Australia.
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To initiate a partnership for novated leasing with Novated Finance Australia, your business should start by contacting our team to discuss your needs and requirements. We will provide guidance on setting up the program, including insights into novated lease employer obligations, costs, and the steps necessary to launch a successful novated leasing scheme within your organisation.
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The best length for a novated lease depends on your circumstances and preferences. Shorter leases may have higher monthly payments but offer more flexibility, while longer leases may have lower payments but require a more extended commitment.
Ready To Offer Novated Leasing?
The Most Popular Cars Being Novated Right Now
From electric wonders benefiting from government incentives to fuel-efficient models designed to cater to your daily commute needs, all of these vehicles promise an exceptional driving experience.
