Novated Leasing isn’t just for employees of big business or Government as most people think. Any employee can benefit with a Novated Lease and there are huge savings to be gained from taking advantage of the tax benefits that this product offers.
Salary Packaging Benefits With NCLO
In 2019 NCLO (Novated Car Leasing options) added the full range of available Salary Packaging benefits alongside their fully maintained novated car lease service. As many employees are trying to navigate an extremely challenging year, all trying to move through the journey safely and financially sound, Salary Packaging may well be the advantage you could easily implement to gain more money in your pocket.
For employers all trying to hold onto valued staff this option is an ideal way of giving a pay rise to help them without costing the company any extra dollars. Salary Packaging is truly a WIN-WIN option for everyone involved.
What is Salary Packaging?
Salary packaging, frequently known as Salary Sacrificing, is a way of gaining further benefits as a pre-tax deduction, which is approved by the ATO (Australian Taxation Office). These benefits can include your private use motor vehicle (Yes the family car, nothing to do with a business or company car!) rent, mortgage payments, education, travel and more.
To explain you are actually paying for these costs before you pay tax on your salary. So what is happening, is, your employer pays you the same salary but you pay for selected expenses before the tax is taken out, rather than after. This could reduce your taxable income which then means you are paying less tax!
It’s easy for your employer to implement as well so everyone wins. They give you an instant pay rise without a lot of work on their end. When you commence salary packaging, your payroll department sends the nominated funds to NCLO for disbursement to pay for your benefit items. Super simple!
Salary Packaging Benefits – What Are They?
Will also depend on the industry you work in but to give you an example of benefits that are available under Salary Packaging:
Your Family Car
You can put your new or used family car under a Fully Maintained Novated Car Lease, with all running costs easily maintained under one budgeted cost. This is available to everyone regardless of which industry you work in.
Mortgage and Rental Payments
Available for employees working in the health care sector, charities, private schools, clubs, or religious institutions.
Computers and Mobile Phones
You will need to ask your employer if you can have this benefit, as it covers computers/laptops, phones and printers.
Depending on your employer and industry you currently work in you may also be able to gain salary packaging benefits with:
- Related Travel Expenses
- Airport Lounge Membership
- Accommodation/Venue Hire
- Self Education/Living Expenses
- Remote Area Benefits
If you would like confirmation this is 100% available from the ATO you can check out Money Smart write up on it.
Talk to the team at NCLO today on which benefits you could access via Salary Packaging and start gaining more money into your wallet today! It’s easier than you think and well worth it moving forward as we set ourselves up to come out of 2020 in a financially stable way.
Novated Car Leasing Options does not purport to offer legal, financial or taxation advice. Employers and employees should seek independent advice as to the implications of a Novated Lease transaction. The salary packaging amounts and take-home pay calculations set out are estimates only. While due care is exercised by us to ensure the integrity of the estimates it does not make any warranties, express or implied as to its accuracy or completeness. Powered by Paywise. Trademarks and Brands are the property of their respective owners.