Novated leasing is one of the most convenient ways to buy and run a car and can benefit both you and your employees.
Novated leasing is salary packaging a car – new, used or one already owned.1 Employees’ pre-tax income is used for car finance and running costs, which can help reduce income tax and GST. SmartTM can help manage it all for you, including transitioning a lease to or from another employer.
Salary packaging a car (and/or other benefits like portable electronics, super and more) could increase overall remuneration – which is what employees value most from an employer.2 But there’s no impact to your bottom line.
Novated leasing can be complex. But with 25 years as a partner to many of Australia’s leading companies and government departments, we know the ins and outs of different industries and stay ahead of evolving tax legislation. It helps us make things simpler for both employers and employees.
Employees can make even greater tax savings with eligible electric vehicles (EVs), and encouraging EV uptake can also help you meet your Environment, Social and Governance targets.
Thanks to federal government incentives, if employees lease an eligible EV or plug-in hybrid (PHEV), 100% of the lease and car costs come from their income before tax.^
Encouraging employees to drive an EV through a novated lease, with all the tax savings and other benefits it offers them, is also a powerful way to help reduce your organisation’s carbon footprint, at no cost to you. Our focus on Scope 1 and 2 carbon emissions reductions can in turn help you achieve your Scope 3 targets.
Ours is an end-to-end novated lease offering, with a range of service options to help your employees maximise savings and convenience. These include:
While all employers can offer novated leases, other benefits depend on your industry and its tax classification.
This is general information only. Before entering into any salary packaging or novated leasing arrangement, employees should consider their own objectives, financial situation and needs, and seek appropriate legal, financial or other professional advice based upon their own particular circumstances. The availability of benefits is determined by the employer. Conditions and fees apply. Smartsalary Pty Ltd, ABN 24 096 796 100, a SmartTM company.
^ Fringe Benefits Tax (FBT) exemption available for eligible electric, plug in hybrid or hydrogen cell vehicles purchased through a novated lease up to the Luxury Car Tax limit ($91,387 in FY 2024-25). Plug-in Hybrid Electric Vehicles will only be eligible for the exemption if a quote is signed and returned to us on or before 31 March 2025
