As electric vehicles (EVs) and hybrid cars become more prevalent in Australia, novated leasing is quickly becoming a popular solution for both employers and employees.
CarBon Novated Leasing offers an efficient and flexible way for Australian employees to lease a vehicle while enjoying significant tax benefits and cost savings.
At the same time, employers benefit from offering novated leasing as part of their salary packaging options, which helps attract and retain top talent and reduce their payroll tax obligations.
Let’s explore the key benefits of CarBon Novated Leasing for both Australian employers and employees, and how it provides a win-win solution for both parties.
Top 5 Benefits for Australian Employees
1. Significant Tax Savings
One of the biggest benefits of novated leasing for employees is the ability to reduce your taxable income by using pre-tax dollars to lease a vehicle. Here’s how it works:
- Your lease payments are deducted from your pre-tax salary, lowering your taxable income.
- This results in significant savings, especially for middle to higher-income earners who stand to reduce their tax burden substantially.
For example, if you earn $90,000 a year and your novated lease payments are $12,000 annually, your taxable income is reduced to $78,000, meaning you pay less in taxes over the course of the year. The more you earn, the greater the tax-saving potential.
2. Bundle Running Costs into One Payment
Novated leasing allows you to bundle all vehicle-related expenses into one easy payment. This includes:
- Registration
- Insurance
- Maintenance
- Fuel or electricity (for EVs)
By bundling these costs into a single pre-tax payment, you simplify your finances and avoid unexpected out-of-pocket expenses. You also enjoy GST savings, as novated leases exempt you from paying GST on the purchase price and running costs of the vehicle. The GST savings alone can make novated leasing very attractive.
3. Flexibility to Upgrade
One of the unique benefits of leasing through CarBon Novated Leasing is the flexibility it offers. Since leasing agreements are typically between two to five years, employees have the option to upgrade to a newer vehicle at the end of the lease term.
This allows you to drive the latest electric or hybrid vehicles with the most up-to-date technology without worrying too much about long-term depreciation or ownership hassles.
4. Access to a Wide Range of Vehicles
At CarBon Novated Leasing, we provide employees with access to a broad range of vehicles. Whether you’re interested in leasing a practical sedan, a spacious SUV, or a fuel-efficient hybrid or electric car, we offer flexible leasing options to suit your lifestyle and preferences.
5. Environmental Benefits of EVs and Hybrids
For employees who choose to lease an electric or hybrid vehicle, there are added environmental benefits. Driving an EV or hybrid reduces your carbon footprint and helps contribute to Australia’s goal of reducing greenhouse gas emissions.
With novated leasing, it’s easier than ever to drive a sustainable vehicle without the financial burden of ownership.
Novated Leasing Benefits for Australian Employers
1. Attract and Retain Talent
Offering novated leasing as part of your employee benefits package can help attract top talent and improve employee retention. Employees value flexibility and the ability to make their salary work harder for them, and offering novated leasing helps demonstrate that you care about their financial well-being.
Novated leasing is a highly attractive perk that sets employers apart in competitive industries. By providing an easy and tax-effective way to access a vehicle, you increase the appeal of working for your company, especially in sectors with high employee turnover rates.
2. Improve Employee Satisfaction
Happy employees are productive employees. By offering novated leasing, employers help staff reduce the financial burden of vehicle ownership and improve their overall job satisfaction. The tax savings and convenience of bundled vehicle costs mean employees have more take-home pay, less stress, and more financial flexibility.
3. Payroll Tax Savings
Novated leasing isn’t just beneficial for employees—employers can also benefit from payroll tax savings. Since lease payments are deducted from an employee’s pre-tax salary, it reduces the gross salary amount, lowering your payroll tax obligations.
For businesses with large payrolls, this can result in significant savings, freeing up cash flow for other critical areas of the company.
4. Easy Administration
With CarBon Novated Leasing, we handle all the administrative work, making it a hassle-free process for employers. We work with you to manage the setup, documentation, and ongoing management of the leases.
This includes liaising with your employees, the salary packaging provider, and the leasing financier, ensuring everything runs smoothly.
By outsourcing the management of novated leasing to us, you can focus on running your business, while your employees enjoy the benefits of their leased vehicle.
5. Support Sustainability Goals
Many companies are making sustainability a priority, and offering novated leasing for electric and hybrid vehicles is a great way to support your corporate social responsibility (CSR) initiatives.
Encouraging employees to lease environmentally-friendly vehicles aligns with broader sustainability goals and helps reduce the company’s overall carbon footprint.
This can be particularly beneficial for companies looking to improve their brand image and appeal to eco-conscious consumers and clients.
Speak to us about how we can align with your organisation’s sustainability goals.
Why Choose CarBon Novated Leasing?
At CarBon Novated Leasing, we specialise in providing all types of vehicles through novated leasing, including petrol, diesel, electric, and hybrid models. Our team offers expert advice and personalised solutions to help both employers and employees maximise the financial benefits of leasing.
With a focus on cost savings, convenience, flexibility and high-quality customer service, CarBon Novated Leasing provides Australian employees and employers with an efficient and stress-free leasing experience.
Whether you’re looking to attract new talent, reduce employee turnover, or help your staff maximise their take-home pay, novated leasing is the perfect solution.
Conclusion
Novated leasing offers substantial benefits for both Australian employees and employers. Employees can enjoy significant tax savings, simplified budgeting, and access to the latest vehicles, while employers can attract and retain talent, reduce payroll tax, and support sustainability initiatives.
With CarBon Novated Leasing, the process is simple, efficient, and beneficial for all parties. Start exploring your novated leasing options today and experience the advantages of driving smarter, saving bigger, and contributing to a more sustainable future.