Attract, Engage, Reward & Retain your Talent with NSP Salary Packaging
THE MOST FINANCIALLY REWARDING EMPLOYEE BENEFIT AROUND
"Money isn't the only thing that motivates someone to perform well at their job, but it certainly factors in heavily".
Your employees could save thousands in tax by bundling all their car expenses together.
In its simplest form, YOUR EMPLOYEES GET MORE FROM THEIR SALARY by paying less tax, which increases their disposable income at zero cost to the business.
Salary packaging, (also know as salary sacrifice) is an employee benefit that is fully approved by the Australian Taxation Office and allows your employees to pay for certain items before tax.
Top 6 Benefits of offering
NOVATED & ASSOCIATED Leases through NSP SALARY PACKAGING
Give your staff a Pay Rise - at no cost to your business
Salary packaging is a great way to reward your people for their hard work at no risk or cost to your bottom line.
There’s no cost to the business at all.
Employees pay an administration fee for the service that is set up and automatic through payroll.
As a result of pre-tax payments to the lease, employees reduce their taxable income
Become an employer of choice & increase staff retention
The increase in salary package benefits can be leveraged to entice the best talent to your company and can be a key factor to highlight in negotiations.
Offering more to employees can also help inspire confidence and loyalty, as the business is helping them to save money.
The additional financial benefits can lead to greater job satisfaction & increased retention company-wide.
Company Tool of Trade Vehicle vs a Novated Lease?
For businesses that provide company vehicles, Novated Leases are a RISK FREE SOLUTION with significant time and financial advantages as opposed to maintaining a company fleet.
A Novated or Associate Lease also provides the employee with a greater level of flexibility and choice in regards to the vehicle. This includes the ability to choose a specific vehicle to be used for personal use without restriction, and even let their family and friends drive the car if they wish.
FBT, Asset & Liability Free for your Company
Under a NSP Salary Packaging arrangement Employers don’t need to worry having an FBT liability. However as the leased car potentially gives rise to an FBT liability, and as FBT is an employer’s obligation, it is generally the case that any FBT amount arising as a result of the novated lease is charged to the employee’s salary package post-tax (which effectively balances each other out to end up with a zero outcome).
If you employee leaves, all obligations fall onto the employee, including the car.
Due to the nature of the arrangement, vehicles under Novated or Associate Leases are not calculated as either an asset or liability for the company..
- Quick and pain free set up
- Seamless Administration and Account Management Systems
- Online portal with access your records and balances
- FBT management and reporting
- Consistent savings on all packages
Attention: Payroll & HR Managers
Reduces Payroll Tax & Increase profitability
When an employee Novates or Associate Leases a car,
- it reduces their taxable income,
- reducing the organisation’s payroll tax
- reducing worker’s compensation premiums
- reducing risk
- increasing the companies bottom line with no risk
The more employees that salary package, the more profitable your business becomes.
FOR EXAMPLE:, an employee packaging a car worth $35,000 would take $5,500 out of taxable wages and save 4.85% x $5,500 = $266.75 in payroll tax.
THE BOTTOM LINE...
You can increase the value proposition of your employees remuneration offering, without actually increasing your costs.
While every employee should evaluate whether Novated & Associate Leasing is suitable for their situation, offering the options is a smart and proactive move for any business.
in addition to vehicles, WHAT else can you salary package that has the most Tax effective benefits to employees?
- Buses & E-bike travel (only from home to work)
- Superannuation (additional to the 9.5% compulsory employer contribution)
- Airport lounge memberships
- Remote Area benefits
- LAFH (Living Away From Home) benefits
- Relocation benefits
- NFP (Non For Profit) concessional benefits (living & entertainment)
- NFP (Non For Profit) Private expenses (GST-exclusive up to $15,900 per annum)
Attention: Payroll & HR Managers
Outline of a Novated or Associate Lease Process & Expectations
The process of setting up a Novated or Associate Leases for an employee is easy —and more importantly, free. Apart from some basic documentation and payment automation, National Salary Packaging, the finance company or Associate and the employee will do most of the work.