2 Simple Reasons Employers Should Start a Novated Lease Program
With another skilled labour shortage heating up the old saying good help is hard to find is really starting to ring true. In order to stay competitive employers have to start offering incentives to keep the workforce they have and attract new talent.
But how can you differentiate your business? Cheap gym membership and a free flu vaccine every year are nice but it’s doubtful they would really increase retention or attract great new talent.
What if you could offer everyone in the office a new car AND a pay rise? It would probably gain you a few brownie points around the office but would be insanely expensive right? Wrong. Novated Lease arrangements let you do this without any financial cost and virtually no admin.
In short it’s a simple arrangement between an employer and their employee, provided by a third party.
An employee leases a car through the provider who invoices the employer who then takes the costs out of their employee’s PRE-tax salary.
Because the repayments come from their PRE-tax salary their taxable income is reduced and they can end up paying less tax.
So if you compare that to how they would normally lease a car they can save thousands per year in tax.
Your employees get what they want – A new car for less money and get to pay less tax. Enough said.
You get what you want – Your employees are happy because you just helped them save money and buy a new car at the same time. Best of all it doesn’t cost you anything and the administration is miniscule. Most third party providers will take care of everything from start to finish, all you have to do is sign the dotted line.
*disclaimer – Yes fleetcare offer this service but we’re blogging about it because it is a good idea and we want business owners to benefit from it.
If you’re not clear on the method see the image at the top of this page or look at our Novated Lease for Employers page.
Back to previous page
Back to main blog