A Comprehensive Guide for Employers
In today’s competitive job market, employers are continually seeking innovative ways to attract and retain top talent. Offering attractive employee benefits packages is crucial, and one option that has gained significant popularity is novated leasing. And it isn’t just advantageous for employees; it can also be a powerful tool for employers looking to enhance their benefits offerings and increase employee satisfaction.
Novated leasing is essentially an agreement between an employer, an employee and a finance company like beCarWise. It allows employees to lease a car of their choice using their pre-tax salary and potentially saving thousands of dollars a year. The lease payments, as well as other associated expenses like fuel, maintenance, tyres and insurance, are packaged together and deducted from the employee’s pre-tax salary.
Key Benefits for Employers:
Attract and Retain Talent: Offering novated leasing as an employee benefit can set your company apart from competitors. It demonstrates your commitment to providing valuable perks that enhance the overall compensation package, making your organisation more attractive to prospective employees and aiding in employee retention.
No cost to you: Novated leasing is simple to set up and even easier to manage. And it comes at no cost to you. In fact, it will help you reduce your payroll tax.
Minimal Administration: While the concept of novated leasing might sound complex, the administrative burden for employers is minimal. We liaise directly with your payroll department to set up your employees’ regular pre-tax payments. And to ensure you get maximum benefit for minimal effort, we handle everything from setting up the lease, to determining the deductions and dealing with the paperwork. We do the work, you get the kudos. It really is that simple.
Boost Employee Satisfaction: Providing employees with the opportunity to access tax-effective vehicle financing can significantly increase job satisfaction and morale. It shows that you value their wellbeing and are invested in supporting their financial goals, leading to a more engaged and motivated workforce.
Some common employee questions:
To effectively implement novated leasing as an employee benefit, it’s essential to address any questions or concerns your employees may have. Here are some common queries and their answers:
Will it affect my credit rating? No, a novated lease typically does not impact an employee’s credit rating. Since the lease is in the employee’s name, it is their responsibility to maintain payments.
What happens if I change jobs? If an employee changes jobs, the novated lease can usually be transferred to the new employer, subject to the new employer’s approval. Alternatively, the employee may choose to continue the lease privately.
Am I restricted to certain vehicles? Generally, employees have the freedom to choose the vehicle they want, subject to the novated leasing provider’s approval. This flexibility ensures employees can select a car that meets their preferences and requirements.
What if I exceed the allotted kilometres? If an employee exceeds the agreed-upon kilometres during the lease term, they may incur additional costs. However, many novated leasing agreements offer options to adjust the lease terms to accommodate changes in usage patterns.
A win-win solution for you and your employees.
In summary, a novated leasing can help employers enhance their benefits package, attract and retain top talent, and foster a positive workplace culture. Meanwhile, employees enjoy tax savings, flexibility and the opportunity to drive their dream car without the hefty upfront costs.
Like to know more?
If you have any questions, please feel free to call us on 1300 734 500 and we’ll provide the answers.
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