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How Novated Leasing Could Benefit Your Small Business

14/06/2024 by Lania Mason in Novated Leasing

Australia’s job market is tighter than ever, and small business owners are pulling out all the stops to build a competitive workforce.

That’s tricky when the big companies have more perks to offer new recruits. Or do they?

A salary-packaged car is one perk often seen as reserved for larger corporations. But with small business novated leasing, you can level the playing field with a powerful tool for attracting and retaining top talent.

Novated leases give small business owners all the salary packaging benefits that bigger competitors offer without the risk or cost of investing in fleet vehicles.

If you want to gain a competitive edge in the job market, offer employees significant tax savings, and save yourself the hassle of managing staff vehicles, Fleetcare’s expertise in novated leases for small businesses could be the ace up your sleeve.

Remind me: What’s a novated lease?

Novated car leases work like normal leases, except the obligation for leasing fees and running costs transfers to your employee through a three-party agreement.

You deduct the leasing costs from your employees’ salary, meaning they pay less tax, and you reduce payroll costs.

Here’s a quick video explaining how small business novated leasing works:

Your employees can lease a new or used car, or explore novated lease options for their existing vehicle. They can even kit out their car with accessories.

Best of all, you don’t take on the risk if the employee doesn’t work out. We’ll come back to that in more detail later.

The cost of a novated lease for small business owners

Under a novated lease agreement, employers deduct leasing and running costs from an employee’s pre-tax income. Occasionally, there are post-tax deductions as well.

Because the lease obligations transfer to the employee, our eligibility criteria are based on their financial position. Your business bears no obligation, so you don’t need to worry about a loan or lien as you build your business.

This is how novated leases help small businesses offer the perks typically associated with big companies, without the risk.

Employees get the car they want for a great price, they save tax, and you keep them happy with brilliant benefits.

Four reasons to consider a novated lease for small business employees

Great incentive for staff

A novated lease bundles tax and financial savings into a standout benefits package.

Employees can deduct the costs of a car – including fuel, maintenance, accessories, insurance and rego – from their salary.

This salary packaging is a strategic move to reduce their taxable income. Bundling lease payments into a simple deduction delivers GST savings, reduced taxes and lower expenses, saving them from paying out-of-pocket and getting slugged twice.

That means more money in the employee’s pocket each month, smoother budgeting, and their choice of car to boot.

Partnering with Fleetcare for small business novated leasing also means accessing our exclusive offers and fleet discounts. Fleetcare’s national network and fleet buying power can reduce the cost of your employee’s car by thousands of dollars.

All up, the impressive savings can be a great way to reward motivated employees without slowing down business growth.

Hassle-free car lease management

As Australia’s largest independent fleet management and leasing business, Fleetcare is a ‘one-stop shop’ and the best small business novated lease partner.

With our comprehensive service, we handle all lease-related tasks:

  • Quotes and customer eligibility
  • Purchasing the vehicle
  • Registration and on-roading
  • Insurance
  • Fuel cards
  • Maintenance, repairs and crash management
  • 24/7 roadside assistance
  • Recalls and defects
  • Fringe benefits tax
  • Refinancing, trade-ins and trade-ups

Our in-house customer service team, backed by our national reach and strong supplier relationships, ensures your employees’ novated lease is tailored to their requirements and yours.

We build what’s best for you and your team, so you can focus on running your business. It’s all packaged up in one easy-to-manage agreement.

Attract high-value employees

Adding a car to your salary packing is an effective way to help your business become an attractive employer.

This goes beyond one-time incentives. Novated leasing can be a game-changer, signalling to candidates that your company values financial flexibility and convenience, making your offer more attractive compared to competitors who may not provide such benefits.

Offering a novated car lease option helps your small business attract and retain high-calibre employees, which is crucial for long-term success.

What about departing employees? Responsible small business novated leasing has you covered

One hesitation small business owners might have around car leases is the risk associated with employee turnover.

With Fleetcare’s small business novated leasing agreements, you are not financially responsible if an employee leaves mid-lease. Their lease obligations simply move with them.

Your business doesn’t face the financial risk or administrative hassle of ending the lease, and your employees are protected under our responsible lending policy.

As part of that policy, the lessee (your unfortunately-now-ex-employee) continues to pay Fleetcare for the vehicle, but they become responsible for running costs like fuel, maintenance and insurance.

Financial hardship support is also available. We don’t want Australians to suffer for the sake of their dream car, so our objective is always to find a solution that works for everyone.

Take the next step: Reach out to Australia’s small business novated leasing specialists

Incorporating small business novated leasing into your employee benefits package isn’t just about offering another perk. It’s a strategic choice that can attract and retain top talent, enhance employee satisfaction, and streamline your fleet management processes.

Partnering with Fleetcare means you leverage our expertise and flexible solutions for hassle-free novated leasing. Your employees get the car they want on a leasing schedule that works for them. Your small business can offer big benefits and become a sought-after employer.

And we get to help another happy customer achieve their goals. Sounds like a win-win to us.

Give your small business the competitive edge it deserves. Get in touch with us today to learn more about our best small business novated lease packages and how they will work for you.

Call us on 134 333 or drop us a line digitally.

Get in touch with our friendly team