Why Employers Should Implement a Novated Car Leasing Program
Novated car leasing is a standout benefit that savvy employers are using to drive both employee happiness and the bottom line. By offering a novated lease as part of a comprehensive employee benefits package, companies are not only providing a valuable tax-saving opportunity but also a powerful tool for recruitment and retention. In the fiercely competitive job market, these programs can be the differentiator that attracts and keeps top talent.
Let’s explore why you, as an employer, should consider implementing a novated car leasing program. From tax efficiencies to enhanced employee satisfaction, the potential benefits could be significant for your company.
1. Tax Savings for Employees
A novated lease is a three-way agreement between an employer, employee, and Alliance Leasing. It’s a way for employees to arrange for the lease and finance of a vehicle and have their employer make the lease payments from the employee’s pre-tax salary.
2. No GST Payable by the Employer
One of the striking features of the novated lease is the absence of any GST liability for the employer. While the program offers substantial financial advantages for employees, there are no additional obligations imposed on the employer. This means employees could potentially save a significant amount of tax and apply the savings to novated lease payments taken out pre-tax.
With this program in place, your team members can make substantial tax savings making it a compelling financial incentive for employees.
3. Employee Satisfaction and Attraction
Implementing a novated leasing program communicates to your employees that you’re invested in their financial well-being. It’s a valuable benefit that can significantly enhance job satisfaction and attract new talent. When employees feel cared for and see the practical application of their employer’s efforts to provide additional value, then loyalty and engagement are fostered.
In a survey of employee benefits, company car leasing ranked highly in employee satisfaction. Offering a novated lease program can enhance your employer brand as a company that goes the extra mile for its staff. This modern approach to employee benefits can set your business apart and make a compelling case to prospective employees.
4. GST Savings on Vehicle Costs
Novated leasing provides employees with GST savings on both the initial vehicle purchase and the ongoing operational costs. Since Alliance Leasing makes the purchase on the employee’s behalf, your employees don’t pay the GST, which amounts to around 10% savings for your employees on the cost of a new car.
Further operational savings are achieved as GST is also removed from fuel, servicing, and parts costs, as they are covered by the novated lease arrangement. These savings compound to make the novated lease a compelling prospect for your employees and a valuable addition to your employee benefits portfolio.
5. Streamlined Administration
You might think a program offering such lucrative savings would be complex to administer, but novated leasing is surprisingly straightforward. Alliance Leasing assists in the set up of and training for the novated leasing program at no cost. This ensures a smooth and manageable process.
Leveraging technology, we assist you in setting up an efficient novated leasing program with minimal hassle. Our dedicated support team will work with you to simplify the implementation process. This ensures of administration is a critical factor in the success of a novated leasing benefits program, making it efficient to maintain.
Unlock Your Potential as an Employer
In the competitive business landscape, every advantage counts. A well-structured novated leasing program can be a powerful vehicle for achieving multiple business goals. It can improve your bottom line by cutting tax costs, attract high-calibre employees, and set the stage for a positive and productive work environment.
Don’t miss out on a program that could offer direct financial benefits for your employees and your company. It’s time to consider a novated leasing program—an innovative employee benefit that is approved by the ATO that pays dividends. With our guidance, you can take the first step towards providing a benefit that could be a game-changer for your workforce, recruitment, and operational success.
