Salary Sacrificing to Get a Car

Salary sacrificing allows you to pay for certain goods or services using some of your before-tax salary.

Instead of paying for your car from your take-home pay, you use part of your salary before tax is applied. This could reduce your taxable income and potentially increase your take-home pay.

When you use salary sacrificing to get a car, it’s called a novated lease.

A novated lease:

• Is a finance option that includes you, your employer and a provider like Fleetcare
• Packages your car and running costs into a regular payroll deduction
• Helps simplify how you pay for and manage your car

If you choose an eligible electric car, the Electric Car Discount may allow all payments to be made before-tax, which could increase your potential savings.

Salary sacrificing could make it easier to manage your car costs and potentially save on income tax.

With salary sacrificing, you could:

• Reduce your taxable income and pay less income tax
• Save GST on eligible car and running costs
• Access fleet discounts through Fleetcare’s buying power
• Bundle all your car costs into a regular payment
• Improve cash flow with more predictable weekly expenses
• Take advantage of potential EV incentives, including the Electric Car Discount for eligible cars

You can also salary sacrifice an electric or plug-in hybrid car through a novated lease.

Eligible EVs may qualify for the Electric Car Discount, which allows:

• 100% before-tax payments
• Potentially greater savings over the life of the lease
• Lower running and maintenance costs

This could make electric cars more affordable and easier to manage, while also helping reduce fuel expenses and supporting a lower-emissions lifestyle - see how electric novated leasing works in practice.

With access to newer technology, advanced safety features and a growing public charging network, many employees are choosing EVs as a practical and cost-effective option through a novated lease.

Fleetcare helps make salary sacrificing simple and easy to manage.

With Fleetcare, you could:

• Compare quotes and car options
• Access fleet discounts on new cars
• Understand your potential tax savings
• Get support with setup and ongoing management
• Access our latest showroom offers

If you choose an eligible electric car, the Electric Car Discount may allow all payments to be made before-tax, which could increase your potential savings.