Salary packaging for employees
Salary Packaging is an arrangement between an employer and an employee, where the employee agrees to give up part of their future entitlement to salary or wages in return for the employer providing benefits of a similar value.
A novated lease may be a tax effective way to finance the acquisition of a new vehicle. Under a novated lease arrangement the employer take over all or part of your obligations on the relevant lease. The cost of the lease including the running costs and FBT payable by your employer are deducted from your salary before tax under an effective salary sacrificing arrangement which can result in lower cost for some employees. You should seek independent advice based on your own personal circumstances.
- Saving on income tax - Your employer will take a portion of your lease payment and running costs from pre tax income.
- Saving on GST - Your employer can also claim a GST input tax credit on those costs paid pre-tax, this saves GST on running costs and repayments.
- Saving on the purchase price - We can access fleet pricing on new vehicle purchases
Our online calculators will give you an indication of the potential savings of entering into a Salary Package for your next vehicle with Fleet Choice. You should seek independent advice based on your own personal circumstances.
In addition to the savings you will receive when you salary package your next motor vehicle with Fleet Choice you can also benefit from the convenience and ease that comes with budgeting your expenses and utilising our Fleet Choice Visa Card for all vehicle related expenses.