Frequently Asked Quesitons
for Employees & Employers
Employees
Salary packaging, also known as salary sacrificing, is a simple yet powerful arrangement between you and your employer. It works by allowing you to pay for certain purchases/expenses directly out of your pre-tax salary, which then reduces your taxable income and therefore the amount of income tax you need to pay.
This arrangement can cover a range of expenses depending on your industry; click on your industry to find out more.
Salary packaging is a smart way to maximise your take-home pay and reduce your tax bill. Depending on your annual net income and industry benefits. This will determine how much extra pay you get to take home.
There is a limit on how much of your pre-tax income you can package however it ranges depending on your industry.
Yes, you can package more than one benefit! Click here to find out what you can exactly package.
No, If you are paying PAYG tax you are eligible, but it depends on if your employer offers salary packaging to their staff.
Great news! You can go to your employers dedicated salary packaging landing page. If you don’t know how to find this reach out to your HR manager and they will direct you.
Ask your new employer if they allow salary packaging, if so contact NSP and we’ll arrange payroll deductions with your new employer.
Employers
Our salary packaging services are designed to not only look after your employees, but benefit your business. People are the foundation of any business, and by offering competitive and tailored salary packaging options to your employees, you are building a foundation for your organisation to thrive.
There are a range of benefits; Click here for the full scope of benefits that can be accessed depending on your industry
A key to our success has been the development of salary packaging management software and structures that dramatically reduce the workload required for each pay run for your team. Our processes can be tailored to meet your specific requirements, ensuring seamless integration and ongoing administration. Contact us to book in a discovery meeting to find out how we can help.
We’ll partner with you to provide everything you need to implement a successful Employee Benefits Program with full management and support, with no pressure, risk or investment, so you can focus on building your business.
Whether you are looking for a retention or attraction strategy, or a way to increase your remuneration offering without increasing costs – we have you covered!
We are excited that you are considering NSP to be your salary packaging provider of choice. Click here to see what the transition will look like.
Nothing! In short the employee pays a small administration fee to manage their benefits which also adds to the tax deductibility of their package.
Novated Lease
The novated lease agreement will end with your current employer, but the finance lease between you and your finance company can remain intact. You just keep making the lease payments – but of course, this means you can’t package any of the repayments or gain any tax benefits. If you wish to finalise your lease contract early, you have to contact the finance company to talk about finalising any amount owing on the vehicle.
You can pay out your lease early, but you need to check your pay-out figure to see if the remaining balance is in line with the market value of your car. We would recommend getting to the 75% point of your lease before breaking it early.
When your lease comes to its end you can purchase the vehicle, and you’ll need to pay out any residual value, arrears or overdue interest. Or, if you wish to purchase the car, you can refinance it for a new term. Another option is to replace the car with another, and take out a new agreement.
This is the amount left owing on the vehicle at the end of the lease term. This is a fixed amount that is set by the ATO at the start of the lease. Residuals help to keep monthly repayments down.
A Novated car lease is considered the last decent ATO-approved tax break, and it is available for all employer-approved PAYG employees, regardless if they use their vehicle for private or business use.
A novated lease is best explained as a form of finance that has a three-way agreement between an employer, employee, and a novated lease provider.
It allows an employee to finance a vehicle as part of their salary — known as salary packaging — and benefits both the employee and employer, even where the vehicle is entirely for personal use. Click here to find out more.
Yes you can! We can help organise the transfer of car loan to novated lease which will save you thousands!
There is no limit to the make or model of the car however it is subject to the approval of the financier.
Recently the Australian government have implemented major tax saving benefits for EV vehicles that shouldn’t be missed!
The age of the car must be 10 years old or less at the end of the lease term.
Between 1 – 5 years.