Absolutely! As long as you are a salaried employee using the PAYG system to prepay your tax you are eligible to pursue a novated lease, even if you own the business.
There are no costs to you as the employer; you incur no extra administration fees to your business. The fees associated with salary packaging or novated leasing are outlined in the salary packaging schedule and are deducted from an employee’s pre-tax income. You can offer your employees the benefit of salary packaging at no cost to your business.
If an employee with a novated lease ceases employment the deed of novation becomes void. Consequently, the responsibility for the vehicle is held solely by the employee. Employees have several options available based on their individual circumstances, and our Member Services team is ready to guide them through the process.
It’s a cost-effective strategy to recruit, reward, and retain employees without incurring additional expenses. Employees have the opportunity to include business-use equipment such as laptops and cars in their salary packages, resulting in reduced expenses and liabilities for your business. Plus, by outsourcing your salary packaging to an experienced provider, you could even unlock potential tax savings.
The Australian Tax Office has extended certain industries specific advantages when utilising salary packaging. The primary aim is to support organisations in the public health, not-for-profit, and charity domains, making it easier to attract and retain employees through the provision of tax-free benefits.
We believe in offering salary packaging benefits to all types of enterprises, so Simplygreen does not have minimum staff requirements. We understand that small businesses may differ in their operations, and our team prioritise tailored salary packaging programs which best suit the needs of your organisation no matter its size.
Some organisations qualify to receive concessional Fringe Benefit Tax treatment, which creates a more attractive salary packaging program that can be offered to their employees. The FBT rebate is currently 47% of the gross FBT payable, up to the $30,000 applicable cap.
Organisations which qualify for the FBT rebate include:
- Charities which are institutions
- Religious institutions
- Certain scientific or public educational institutions
- Trade unions or employer associations
Non-for profit organisations established to:
- Encourage music, art, literature or science
- Encourage or promote a game or sport
- Service the community
- Promote the development of aviation or tourism
- Promote the development of Australian information and communication technology resources
- Promote the development of the agricultural, pastoral, horticultural, viticultural, aquaculture, fishing, manufacturing or industrial resources of Australia