Running a business is costly and time-consuming – but you have the power to reduce the effects of both of these things. Novated leasing as an employer has a range of benefits, including a reduction in payroll and worker compensation premiums. Offering novated leasing can also have a positive impact on the happiness of employees, as they’ll see it as an active way that you’re helping them out.
According to ACA Research, around 65 per cent of survey respondents said the company they worked for offered novated leasing. However, while that might seem high, only 5 per cent of employees had taken one on. This might be due to how little people know about it, or because some employees don’t realise it’s even on the table.
It’s in everyone’s best interests to take on a novated lease, because, as we’ll see below, it can save you and your employees money and time.
Is a novated lease the best option for your business?
As an employee incentive, offering novated leasing could be a great way to make sure you’re hiring the best in the business. If people want a new car, and you don’t want to buy one outright for them, then with a novated lease, they can choose their own. They also take on the responsibility of paying the lease off. For them, it comes out of their paycheck before it is taxed, which means that they actually save money.
If you’re wanting to upgrade your fleet of business vehicles, then it’s important to understand what your responsibilities are for using a novated lease vehicle for company purposes. For example, the Australian Taxation Office (ATO) states that you can make a GST claim after the vehicle is leased, but only if you don’t make any input taxed sales in your business. If you can claim GST credits back, you save 10 per cent on the cost of each vehicle in your fleet!
Is there an easy way to go about novated leasing?
All of this might sound like a lot of hassle, however it doesn’t have to be.
Alliance Leasing makes the process straightforward, with all paperwork trimmed down to the absolute minimum. That means you aren’t wasting time reading unnecessary documents. This simple administration process means novated leasing won’t impact on your business operations, except to provide you or your employees with a new car!
Get in touch today to find out more about what novated leasing could do to your business.