What is Salary Packaging?
Salary packaging is an arrangement between you and your employer where you agree to use part of your pre-tax salary to pay for eligible items or benefits, based on what your employer offers. Here at beCarWise, we help you use your arrangement to take out a novated lease on a new or used car, and having all the everyday costs associated with running that vehicle (think: servicing, tyres, fuel, rego and more) all bundled into one simple, convenient payment. No surprises. Just easy, simple, car ownership. But, the key advantage is that these expenses are paid from your pre-tax income, reducing your taxable salary and potentially lowering the amount of tax you pay, leaving more in your pocket.
How does Salary Packaging Work?
When you enter into a salary packaging agreement, your employer deducts the agreed-upon amount from your pre-tax salary and uses it to pay for the selected benefits. So, let’s say if you choose to salary package a car through a novated lease, your employer will make the lease payments on your behalf directly from your pre-tax income. This not only simplifies your finances but can also lead to significant tax savings. Win-win.
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Why you should Salary Package your car with beCarWise
Salary packaging offers several benefits:
- Tax Savings
- Complete Convenience
- Flexibility
Tax Savings
By reducing your taxable income, you may pay less tax.
Complete Convenience
Bundling expenses like finance payments, insurance, fuel or charging and maintenance into one regular payment simplifies budgeting.
It’s a practical way to enhance your compensation package without asking for a pay rise.
Flexibility
Don’t be tricked into thinking salary packaging is strict and structured, when you take out a novated lease via salary sacrifice, you’ll be provided with many options to suit your needs!
It’s a practical way to enhance your compensation package without asking for a pay rise.
Salary Packaging with beCarWise could save you thousands on your next car
As one of the leading salary packaging companies in Australia, at beCarWise by Paywise, we make salary packaging straightforward and beneficial. Our novated lease options allow you to package your car expenses, including lease payments, fuel, insurance, and maintenance, into one manageable pre-tax payment. This approach can lead to big savings over the life of your lease. Our team is here to guide you through every step, ensuring you maximise your benefits.
How much can I save with Salary Packaging?
Am I eligible for Salary Packaging?
Eligibility for salary packaging in Australia depends on your employer and the nature of your employment. Generally, full-time and part-time employees can access salary packaging options, but we recommend chatting with you HR department or payroll officer to confirm what’s available to you. At beCarWise, we can also assist in speaking with your employer to explore your options on your behalf.
See if you’re eligible!
You won’t look back when you salary package with beCarWise.
Contact us today or fill in your details below and one of our friendly consultants will be in touch to tell you more.
Salary Packaging FAQs
What is salary packaging?
Salary packaging, also known as salary sacrificing, is an arrangement between you and your employer where you agree to use some of your pre-tax salary to pay for certain items or benefits, meaning you may pay less tax.
How can salary packaging save me money?
By paying for certain expenses with your pre-tax income, salary packaging reduces your taxable income. This can lead to significant tax savings, effectively increasing your take-home pay. For example, packaging a car lease via a novated lease with beCarWise can result in substantial savings over the life of the lease.
What happens if I change jobs?
When you choose to take out a novated lease via a salary sacrifice agreement, you choose a lease period ofbetween one and five years. If you do change jobs within this time, you’ll have three options:
Renovate your lease: If your new employer agrees, you can renovate your lease with them. You’ll have access to the same fantastic benefits as with your previous employer.
Continue with monthly payments: With this option, you’ll be responsible for paying all of your monthly payments, as well as the maintenance costs for your vehicle out of your own pocket.
Payout your lease early: When you take on a novated lease, you agree to lease the vehicle for a set period of time. If you break the lease early, you’ll need to pay the remainder left on the lease, along with the residual value of the vehicle (GST included). Essentially, this option means you’re buying the vehicle outright.
No matter the option you choose, we can assist you with the transition process.
Renovate your lease: If your new employer agrees, you can renovate your lease with them. You’ll have access to the same fantastic benefits as with your previous employer.
Continue with monthly payments: With this option, you’ll be responsible for paying all of your monthly payments, as well as the maintenance costs for your vehicle out of your own pocket.
Payout your lease early: When you take on a novated lease, you agree to lease the vehicle for a set period of time. If you break the lease early, you’ll need to pay the remainder left on the lease, along with the residual value of the vehicle (GST included). Essentially, this option means you’re buying the vehicle outright.
No matter the option you choose, we can assist you with the transition process.
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