You might have heard of the term ‘Novated Leasing’ but what does it actually mean? Novated leasing (also known as salary sacrificing) is a way for your employees to lease vehicles in their name. While they are working for you, you make the payments on their behalf using their pre-tax (or a mix of pre and post-tax) income.
Here are 5 good reasons why you should offer this service to your employees:
- NO COST to you – As each lease is in the name of your employee, there are no fees or costs for the employer. This includes early termination, or lease changes.
- NO RISK – Unlike your traditional tool of trade vehicles, a novated lease is in the name of the employee – if they stop working for you the car goes with them, leaving you with no car to rehome.
- ATTRACT and RETAIN staff – Novated leasing is a great way for you to attract and retain staff to your organisation as a tangible benefit that adds nothing to your expenses. You are essentially able to give them a pay rise without it costing you a thing!
- NO ADMINISTRATION – All invoices related to each novated lease such as fuel, servicing and registration are handled and paid for by StreetFleet meaning no additional strain for your admin team.
- TAX DEDUCTIONS – The monthly payment for each novated lease is passed to the employer, meaning you can claim these as a direct expense on the business and any deductions that attracts.
StreetFleet is more than happy to answer your questions or to provide you with more information. Contact us on 1300 273 359 or go to http://www.streetfleet.com.au/vehicle-leasing/novated-lease