As the owner of a small or medium-sized business anywhere in the southern hemisphere country of Australia, you are probably looking for innovative ways to keep your staff motivated at all times. Indeed, you may not be aware that the implementation of a salary package can provide your employees with significant benefits that could not only boost their financial situation as well as increase their job satisfaction. Moreover, through the incorporation of salary packaging, specifically through the inclusion of novated leasing in your employment contracts you will be able to create a fantastic opportunity for your employees to save on taxes as well as enjoy access to the latest models of vehicles and maintain a high level of flexibility when it comes to managing their personal finances.
- Enjoy tax savings
- Access newer vehicles
- Greater financial flexibility
Enjoy tax savings
To begin with, one of the main benefits of a Novated Lease is the ability for your employees to enjoy substantial tax savings, while under the terms and conditions of this particular type of arrangement, payments for a vehicle lease will be deducted from an employee’s pre-tax income, reducing the amount of taxable earnings in the eyes of the tax department. As a result, your employees will be able to drive the vehicle of their choosing while also lowering their tax obligations to the government and giving them more disposable income each and every month. This particular benefit is especially appealing to people who are looking to make the most out of their compensation, while if you are looking for innovative ways to enhance the appeal of your compensation packages to potential hires, the use of novated leasing is an attractive yet simple solution that can add value in real terms to the take-home pay of your staff.
Access newer vehicles
Secondly, providing a novated leasing package for your Australian business can allow your employees to access newer, safer and more reliable makes and models of vehicles without having to incur the financial strain of buying a car outright. As a result, this means that your employees will be able to drive the latest models of vehicles, which usually come equipped with several advanced safety features, better fuel economy and lower running costs.
Greater financial flexibility
Lastly, the use of novated leasing can provide greater financial flexibility, which could potentially improve the overall satisfaction and motivation levels of your staff, especially in relation to their employment package or remuneration. Moreover, taking the decision to lease a vehicle through a salary packaging agreement can enable your employees to budget more effectively, because the predictable monthly payments will be fixed and include many of the running costs, such as registration, maintenance and insurance.
To conclude, the implementation of a novated leasing package can provide your employees with three amazing benefits, especially saving on the amount of tax they pay to the government, accessing newer vehicles and ensuring greater financial flexibility, while through the incorporation of this system, you can empower your employees to maximise their earnings while maintaining a high level of convenience in their personal financial situation.
