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4 Common Misconceptions about offering a Novated Car Lease to your employees

Tuesday, 24th October 2017

Many employers have reservations about offering a Novated Car Lease to their employees, imaging negative impacts it could have on their business. Often, these imaginings are simply untrue.

Learn the 4 common misconceptions about Novated Leasing that could be holding you back from offering your staff a rewarding incentive that benefits you, your company, and your team.

4 Common Misconceptions about offering a Novated Car Lease to your employees

1. 'The extra admin will be a burden on my business.'False. The Novated Leasing provider take care of all lease deductions, reporting and any changes your employee requires to their package. All you have to do is alter your payroll system. It is that easy!

2. 'Offering a novated car lease leaves me responsible for my employees' car.'False. The Novated Leasing provider takes care of the entire lease. Even if an employee leaves the organisation, they take the lease with them.

3. 'Offering a Novated Lease means I have to pay the Fringe Benefits Tax'False. Even though most employee benefits are taxed to the employer as FBT, a Novated Lease is different! If your employee takes part in a Novated Lease, all FBT is offset with a post-tax salary deduction, meaning no cost to you.

4. 'A Novated Lease doesn't benefit my business at all'False. Just because you aren’t the one getting the car, doesn’t mean there aren’t any benefits! Offering a Novated Lease effectively allows you to:

  • Give your staff a pay rise without increasing your costs;
  • Keep your employees happy with salary packaging benefits; and,
  • Maximise staff retention, engagement and satisfaction

How can I offer a Novated Lease to my employees?
If you’d like to reward your employees and positively enhance your business, or would simply like to talk through how a Novated Lease works, give LeaseMasters a call directly on 1300 303 357.

LeaseMasters has worked with hundreds of companies just like yours, helping them to reward their employees by giving them the pay rise they deserve.
Call us on 1300 303 357 or MAKE AN ONLINE ENQUIRY and we will be in touch with you at a time that suits.

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