BENEFITS: Novated Leases 101

What is it and why should I consider it?

Salary packaging a car, also known as a novated car lease, is one of the easiest and most cost-effective ways to buy and run a car.

With a novated lease, your finance and running costs are bundled into one simple payment each pay cycle. This means running expenses such as fuel, maintenance, insurance and registration are already budgeted for. You don’t pay GST on these expenses, which means you spend less money on the things you’re already paying for.

You can also pay for your vehicle expenses using a combination of your pre- and post-tax salary, which can reduce your taxable income and ultimately the amount of tax you pay.

One of the best things – it can apply to a new, used, or even your current car! And with recent changes in legislation, choosing an electric car for your novated lease could save you even more.

Options and savings will vary depending on your provider, which is why we have partnered with a panel of salary packaging providers so eligible employees have a range of options to explore.

Employee Eligibility

Monadelphous currently offer vehicle salary packaging options for:

• Permanent employees assigned to work in Australia
• Employees on a fixed term contract of greater than 2 years duration

Salary packaging (including novated leasing) is not available to employees who are assigned to work in an overseas location. Some exceptions may be available for other employee designations/regions by agreement between the Divisional Executive General Manager and the General Manager Human Resources.

Employees should refer to the Salary Packaging Guideline for more details on minimum standards, eligibility and other requirements for salary packaging a vehicle.

Our Providers

Important note, salary packaging involves a regular payment deducted from each pay cycle for the duration of the lease, including those pay cycles that may be lower than average for wages employees. Onus is on the employee to contact their lease provider to ensure any shortfall on their regular lease payment is met from post-tax dollars.

Salary packaging is individual to an employee’s circumstances. Before entering into any type of salary packaging arrangement, it is recommended that employee’s seek independent financial advice first to ensure the best financial outcome.

GOT QUESTIONS?

For more information and queries about salary packaging or any of our other employee benefits, please contact Benefits with Us team at benefitswithus@monadel.com.au.