Employees

Novated Leasing for Employees in Melbourne

I’m looking to purchase a new car and would like to understand more about how PAR Leasing works, what the benefits are and if I can finance my new car and running expenses from my pre-tax salary.

Answer:

You are a career-minded professional with drive and ambition. What you lack is your dream car. Sadly, service and maintenance expenses put it out of reach.
But a car isn’t just an impossible dream. Your salary will get it parked in your garage. PAR Leasing offers the Salary Packages that will make it possible.

How Salary Packages Work

The employee, employer, and finance company do their part to put a salary package together.

1. The employee agrees to give up part of his or her pre-tax salary. He or she gets the new car in exchange.

2. The employer agrees, on his or her part, to deduct part of the cost from the employee’s pre-tax income.

3. Although the employer has paperwork to complete, the administrative burden falls on the finance company. There are forms to fill, but no ongoing maintenance.

The benefits of Salary Packages for employees

1. Gives AN EMPLOYEE more to spend

First of all, salary packages mobilize your pre-tax income. Your employer will finance the vehicle on your behalf by deducting amounts from your pre-tax salary, and this increases your spending power. Salary Packaged cars have less impact on a vehicle owner’s take-home pay because of Fringe Benefits Tax (FBT). It is a concession that the Australian government provides for such vehicles.

2. No GST

Finance companies can claim GST as a tax credit when they buy cars. They purchase vehicles GST free and pass the savings to you. Novated leasing enables salaried employees to avoid payable GST.

3. Portability

Though your company finances your car, it is entirely yours. You can take the lease with you if you change jobs. You won’t have to worry about transport even then.

4. Private Use

A salary packaged car is for private use. There is no attached business component. The Fringe Benefits Tax arrangement and GST concessions encourage people to make salary sacrifice arrangements on their cars.

Why choose PAR Leasing Salary Packages?

1. Experience

PAR Leasing has over forty years of experience financing vehicles. We understand your needs and can deal with any issue that arises with your lease.

2. Attractive Disconts

Car financing is a heavy responsibility. As a result, many lease providers don’t offer competitive interest rates. They don’t deliver a substantial discount on the vehicle.
PAR Leasing, on the other hand, offers attractive, discounted salary packages.

3. Availability

We finance cars all over Melbourne and its outskirts. We have ties to many businesses and services in the area, which puts us in the best position to look after your needs.
We can secure vehicles of your choosing, at the low prices. You won’t have to pay for a pre-selected car that doesn’t connect with you.
Our friendly consultants are on hand to answer your questions about salary packaging. They will take your needs into account and arrange the best salary package for you.

Contact Us

If you are an employee with questions about salary packages, forward them to us. Navigate to our Contact Page we will get back to you as soon as we can.

Frequently asked questions

What is a novated lease?

A novated lease is an agreement between you, your employer and the leasing company. Your employer pays the lease and running costs from your salary, mostly before tax, so you pay less income tax while driving the car you choose.

How much could I save with a novated lease?

Savings depend on your salary, the car you choose, how far you drive and the running costs you include. You also do not pay GST on the purchase price of the car or on most running costs. Ask PAR Leasing for a free quote showing your own numbers.

What running costs can be included?

Most novated leases can include fuel or charging, servicing, tyres, registration, insurance and roadside assistance, all paid from one regular salary deduction.

What happens at the end of the lease?

At the end of the term you can pay the residual amount and keep the car, refinance the residual and continue the lease, or trade the car in and start a new lease.

What happens if I change jobs?

If your new employer offers salary packaging, the lease can usually move with you. If not, the lease can be paid by you directly until you decide what to do.

Can I get a novated lease on an electric car?

Yes. Eligible electric vehicles under the luxury car tax threshold for fuel efficient vehicles can be exempt from fringe benefits tax, which can make the savings even bigger. Ask us which models qualify.

Does my employer need to agree?

Yes. Your employer needs to offer salary packaging. If they do not offer it yet, PAR Leasing can help them set it up.

This is general information only and does not take your personal circumstances into account. Speak to your accountant or financial adviser about your situation.

Learn more

Get a free quote

Call PAR Leasing on (03) 8387 1200, try our repayment calculator or send us a message. We are based at 237-241 Geelong Road, Footscray, and work with drivers and businesses across Melbourne and Victoria.