In today's job market, companies are always looking for new ways to attract and keep the best workers. One way to do this is by offering good benefits. A popular option that's gaining traction is novated leasing. This isn't just good for workers; it's also a great tool for employers to improve their benefits and make their staff happier.

What's Novated Leasing?

Novated leasing is a deal between an employer, an employee, and a finance company like Alliance Leasing. It lets workers lease a car they want using money before it's taxed, potentially saving them thousands each year. The lease payments, along with other costs like fuel, upkeep, tires, and insurance, are bundled together and taken out of the employee's pre-tax pay.

Main Benefits for Employers:

Get and Keep Good Workers: Offering novated leasing as an employee benefit can make your company stand out. It shows you're committed to giving valuable benefits that boost the overall pay package, making your company more appealing to potential employees and helping keep current ones.

No Cost to You: Novated leasing is easy to set up and even easier to manage. And it doesn't cost you anything. In fact, it will help you pay less in payroll tax.

Little Paperwork: While novated leasing might sound complicated, employers don't have to do much. We work directly with your payroll team to set up your employees' regular pre-tax payments. To make sure you get the most benefit with the least effort, we handle everything from setting up the lease, to figuring out the deductions and dealing with the paperwork. We do the work, you get the credit. It's really that simple.

Make Employees Happier: Giving employees the chance to get tax-effective car financing can really boost job satisfaction and morale. It shows that you care about their wellbeing and want to help them reach their financial goals, leading to a more engaged and motivated workforce.

Common Employee Questions:

Will it Affect My Credit Score? No, a novated lease usually doesn't impact an employee's credit score. Since the lease is in the employee's name, it's their job to keep up with payments.

What If I Change Jobs? If an employee changes jobs, the novated lease can usually be moved to the new employer, if the new employer agrees. Or, the employee can choose to continue the lease on their own.

Can I Choose Any Car? Generally, employees can pick the car they want, as long as the novated leasing provider approves. This flexibility ensures employees can select a car that fits their needs and wants.

What If I Drive More Than Planned? If an employee drives more than the agreed-upon kilometers during the lease term, they might have to pay extra. However, many novated leasing agreements offer ways to adjust the lease terms if driving habits change.

A Good Deal for You and Your Employees

To sum up, novated leasing can help employers improve their benefits package, attract and keep top talent, and create a positive workplace culture. At the same time, employees enjoy tax savings, flexibility, and the chance to drive their dream car without the big upfront costs.