What is Salary Packaging and Novated Leasing?
Salary Packaging allows employees to exchange part of their pre-tax income for non-cash benefits, reducing taxable income and boosting take-home pay. Novated Leasing, a popular option, lets employees lease a vehicle and cover running costs - like fuel and insurance - using pre-tax earnings. With Simplygreen managing all the hassle, employers face no extra effort while offering benefits that attract and retain staff.
Empowering your company with workplace benefits that save thousands.
In today’s competitive employment market, offering Salary Packaging and Novated Leasing isn’t just a perk - it’s an expectation. By providing these benefits, you give your employees an opportunity to maximise their take-home pay while simplifying major purchases, like vehicles. This not only attracts top talent but also enhances employee satisfaction and retention.
Salary Packaging Example
Under this arrangement, employees agree to exchange a portion of their salary for non-cash benefits provided by their employer. These benefits are excluded from the employee’s taxable income, offering a tax-effective way to maximise their earnings.
For example, if you were to package a salary of $120,000, so you receive:
- $20,000 as a car benefit (towards your Novated Lease)
- $100,000 as income
This reduces your taxable income to $100,000, meaning you pay no tax on the $20,000 going towards your Novated Lease (this is where the tax savings come from!).
Making It Simple
The great thing about outsourcing to a leading provider like Simplygreen is that we make it simple and easy to manage – we’ll take care of it all:
- Staff training
- ATO compliance
- Accurate and timely reporting
- Staff education sessions
- No extra admin costs for the company
- Professional support and advice
Why choose Simplygreen?
We cover all the standard essentials, like ATO compliance, reporting, and support - but we don’t stop there. At Simplygreen, we believe in using business as a force for good. As the only Salary Packaging and Novated Leasing provider with B Corp certification, we’re also proud members of 1% for the Planet and a Climate Active organisation.
We actively promote electric vehicle adoption, reduce carbon footprints, and support environmental initiatives through partnerships and donations. With Simplygreen, you’re not just offering great benefits - you’re driving positive change for the planet.
How to get your company started
Step 1: Get started by submitting an inquiry with Simplygreen. Our account management team will assess your business needs during a discovery call. Setup requires minimal paperwork, followed by an onboarding session to guide you through payroll administration and employee education for the new benefits.
Step 2: Employees can receive personalised consultations to understand the benefits and costs of salary packaging. After signing agreements, Simplygreen will manage the necessary pre- and post-tax deductions and provide invoices aligned with your payroll cycle.
Step 3: Simplygreen manages running cost accounts for Novated Leases, covering expenses like finance, fuel, and insurance. Reimbursements are processed within four business days, and disbursements for salary-packaged items are completed within two business days of receiving funds.
Steps for Getting Started
Discover the benefits of Salary Packaging & Novated Leasing for you.
Discover the benefits of Salary Packaging & Novated Leasing for you
Boost employee satisfaction and retention by offering Salary Packaging and Novated Leasing, helping your team save on taxes and drive the car of their choice.
Simplygreen FAQs
I am employed as a 'casual' for a Public Benevolent Institution (PBI) or Health Promotion Charity. Can I still salary package?
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Yes, casual employees working for a PBI or Health Promotion Charity may still be eligible for salary packaging. However, eligibility depends on your employer’s policies and whether your earnings are consistent enough to support regular pre-tax deductions. We recommend checking with your employer or reaching out to Simplygreen for confirmation.
I've started a new job and they use Simplygreen for Salary Packaging. How do I sign up?
Getting started is simple! Just follow these steps: 1. Check your eligibility – Your employer must offer salary packaging, and your employment type must qualify. 2. Register with Simplygreen – You can do this by visiting our website or contacting our customer support team. 3. Submit your application – Provide the required details, including your employment information and what expenses you'd like to package. 4. Simplygreen review – Once we review your application, we may contact you to confirm any missing details. Once our review is complete, we'll set everything up for you. 5. Start saving – Your salary packaging deductions will begin, and you’ll enjoy the tax benefits right away!
I have a salary packaging card. Do I need to spend all the money on the card before the 31st of March every year?
Yes, if you have a salary packaging card linked to tax-free capped benefits (such as General Living Expenses or Meal Entertainment), you should aim to use all the available balance before the 31st of March each year. This is because salary packaging benefits are based on the Fringe Benefits Tax (FBT) year, which runs from 1st April to 31st March. Any unused balance may not roll over, and you could lose access to those funds.
What happens if I leave my job or change employers?
Your salary packaging arrangement ends, and any outstanding amounts (e.g., car lease payments) may need to be settled or transferred if your new employer offers salary packaging.
Can I package a car through salary packaging?
Yes, this is called Novated Leasing. It lets you use pre-tax income to cover the costs of a car, including lease payments, fuel, and maintenance, potentially saving thousands.
How does salary packaging save me money?
By using pre-tax dollars for approved expenses, you reduce your taxable income, which means you pay less tax and take home more of your income.
Who is eligible for salary packaging?
Eligibility varies across commercial, government, health, and not-for-profit organisations. It's best to get in contact to discuss your scenario.