FAQ: What are the benefits of a Novated Lease for an employer?
What are the benefits of a Novated Lease for an employer?
Offering Novated Leasing as an employee benefit also has advantages for employers.
Novated Leasing, or salary packaging, a car can effectively increase your employees' disposable income with very little cost, or even no cost, to your business. Salary packaging can work for employees and employers, helping employeees to get more for their money without increasing an employer's salary commitment, payroll tax and WorkCover premiums.
In comparison with the more traditional company car fleet, salary packaging employee cars saves your business money and time. Without penalising your employees, novated leasing means reduced costs, less administration and eliminates residual-value risk. What's more, salary packaged vehicles are off-balance sheet - neither an asset nor liability.
Novated Leasing also means that you can offer your employees their choice of car without fear of being left with unwanted or excess vehicles.