Salary Packaging Calculation Examples

To give you a better idea of how salary sacrificing can save you money we have created two real life examples comparing salary sacrificing with personal financing.

We have estimated 15,000km over a 5 year lease – this represents an ‘average’ package. For savings specific to your needs give us a call on 1300 738 601.

(Recent budget changes mean that there is no longer a minimum number of kilometres that you have to travel in order to make significant savings through salary sacrificing, which is great news!)

Please note: Calculations are based on recommended retail prices of vehicles and do not include national fleet discounts. Budgeted running costs are estimates only and will vary according to driving conditions, location, price of fuel and distance travelled. Our consultants are happy to provide accurate quotations specific to your vehicle requirements.

Example 1

Step 1: determine the package details – a new Mazda 3 Automatic Hatchback

Packaging details
Gross salary $50,000
Vehicle New Mazda 3 Maxx Auto Hatchback
Price (including all on road and statutory charges) $27,091
Annual kilometres 15,000
Lease term 5 years

Step 2: create a budget for the annual running costs of this vehicle

Allocated annual running costs
Finance $5,923
Maintenance $480
Fuel $2,568
Tyres $132
Registration $600
Insurance $880
Total cost $10,583 per year incl GST

Step 3: determine savings gained through salary sacrificing compared to a personal finance arrangement, such as a hire purchase agreement 

Not Packaging Salary Packaging using Employee Contribution Method
Annual Salary $50,000 $50,000
Less motor vehicle $0.00 $5,422
Less FBT $0.00 $0.00
Less GST on employee contribution $0.00 $468.27
Add input tax credits $0.00 $961.32
Taxable Salary $50,000 $45,070
Tax (inc Medicare) $9,300 $7,747
Net salary pre employee contribution $40,700.00 $37,323
Employee contribution $10,573.92 $5,151
Net cash salary (after input tax credits) $30,126 $32,172
Net packaging benefit per year $2,045
Total benefit over term of 5 year lease $10,225

 

Result Salary sacrificing saved this customer $10,225

 

Example 2

Step 1: determine the package details – a new Toyota Prado GXL Auto Petrol Wagon

Packaging details
Gross salary $100,000
Vehicle New Toyota Prado GXL Auto Wagon
Price (including all on road and statutory charges) $67,825
Annual kilometres 15,000
Lease term 5 years

Step 2: create a budget for the annual running costs of this vehicle

Allocated annual running costs
Finance $15,082
Maintenance $847
Fuel $3,506
Tyres $352
Registration $580
Insurance $1,099
Total cost $21,466 per year incl GST

Step 3: determine savings gained through salary sacrificing compared to a personal finance arrangement, such as a hire purchase agreement

Not Packaging Salary Packaging using Employee Contribution Method
Annual Salary $100,000 $100,000
Less motor vehicle $0.00 $8,860
Less FBT $0.00 $0.00
Less GST on employee contribution $0.00 $1,152
Less Luxury car charge $0.00 $17
Add input tax credits $0.00 $1,958
Taxable Salary $100,000 $91,127
Tax (inc Medicare) $26,700 $23,551
Net salary pre employee $73,300 $68,375
Employee contribution $21,541 $12,680
Net cash salary (after input tax credits) $51,758 $55,695
Net packaging benefit per year $3,936
Total benefit over term of lease $19,680

 

Result Salary sacrificing saved this customer $19,680

 

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De , WA Dept of Human Services

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“Everything is going very well. The whole process was excellent and I am very happy. Thank you.”

Mark , Army

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“This is the third vehicle we have bought from Fleet Network. We keep going back because we get such great service and good value for money from the vehicles we buy. We’ve currently got a Honda Odyssey Luxury, which is a great family car. We always do our own research first and then just call them up and tell them what we want. They source it, give us the price, do all the paperwork and then we just go and pick it up. It’s so simple. The hardest part is choosing the car we want! As to recommending them, anytime we have friends looking for a car we recommend Fleet Network. They’re a good company and everyone we recommend has had a good experience.”

Garry , Department of Indigenous Affairs, Western Australia

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“Everything is fantastic with my car and the service I have received was great, can’t thank you enough. Thanks Carole, I do appreciate your follow up. Well, so far everything is ok, if I have any queries I will definitely contact you. The customer service was quite good, I was impressed by consistent and up to date communication throughout the process.”

Memory , NT Dept Children and Families

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“Your customer service during the leasing process was outstanding, as it was last time. We would not hesitate to lease through Fleet Network again when our lease is up.”

Jason , WA Education

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“Sasha at Fleet Network was exceeding professional and is really looked after me extremely well!!! My first contact was with Steve Asher and then Frank rang me and worked towards satisfying all my requirements! Would highly recommend them to anyone, which I have already done on three occasions already!”

Kevan , Qld Education

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“Thanks Jodie, I would just like to say that you have been fantastic with your help through this whole car process and I really appreciate everything that you have done.”

Donna , WA DOCS

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“I would like to say a big thank you to Sasha who provided me a very valuable service, she has been very patient, friendly and always providing me up dates on my current vehicle on order. I currently work for defence and as you probably do not know our movements can be stressful at times and have requested to have my vehicle delivered to me before the delivery date of December 12. Even though Sasha has been informed by Holden that the said due date will still occur on December 12, she is trying really hard to have this vehicle delivered to me at the earliest opportunity due to my transfer taking place on December 16. Once again thank you and I am looking forward to doing business with you during the course of my lease through Fleet Network and I will highly recommend your company to Defence and to family members.”

Rudsyn , Defence

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“I first started dealing with Fleet Network in 2002 when I got in touch and spoke to Matt. I was a bit wary as I had never financed a car this way before but Matt talked me through everything and put me at ease. I told him the things I was looking for in a car and before I knew it he had arrived with a Toyota Corolla for me to test drive. I tested it, he went through the costs, which were almost negligible, and the car has been going beautifully ever since. It’s been passed through the family but Matt was right, it was exactly what I was looking for and has been a great car. Since then I have bought 3 more cars through Fleet Network. I can’t recommend them highly enough – they are really good people, so friendly and they always follow through on their promises. Everyone I know who has dealt with them has commented that Fleet Network really do care.”

Antonio , Department of Education, Western Australia

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“Yes, everything is going great for this vehicle so please thank Frank Agostino, Vicki Scott, Sasha Carruthers and Tammie Maciejak for all their help.”

Craig , WA Health

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“I’d like to thank you and the Fleet Network team for the professional and friendly assistance I received throughout the process and renewing my car. The whole team ensured I knew everything that was happening and a special thanks to the lady who I signed the final paper work with on the hand over day, she was so nice. I have since mentioned you guys and the service you provide to a few of my friends and hope that if they choose to go down this path then they will certainly be looked after. Once again thank you all so much, I will see you all again at the end of my lease for a new one, apparently my son will have his licence by then and has already claimed my car.”

Shirley , WA Education

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“Everything is going well with my vehicle, I love it. I am more than happy with the assistance that I received during the process and would happily recommend Fleet Network to others.”

Jo-Anne , QLD Dept of Communities

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“Jodie and Tim were excellent to work with, they helped me understand exactly what I needed to do and Jodie guided me through the whole experience expertly and patiently.”

Sarah , Dept of Education

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“We have a big family and when we first started dealing with Greg from Fleet Network earlier this year he pushed and pushed to get us into a car big enough for us all and one that would work within our budget. He just wouldn’t give up! We now drive a Hyundai iMax, which is perfect for us. We rang him up so many times with questions but nothing was ever a hassle for him. When Greg went on holiday and Jodie took over it was exactly the same – they were phenomenal. They really did go above and beyond what they had to do in order to help us. Would we recommend Fleet Network? We already do recommend them, to everyone. They have been just so friendly and helpful and worked so hard for us. We can’t thank them enough.”

Troy and Karen , State Government Employee, New South Wales

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“This is the third car that I have bought through Fleet Network. I change my car every three years and this time I wanted a VW Beetle convertible, my dream car, and there was only one left in Australia. Fleet Network managed to find the car for me and get it sent over from the dealer over east. They were fantastic. They then held onto it for me while I got my other car ready for exchange, a process that was delayed due to hail damage from the storms. There were further delays as things got held up with the insurance company but Fleet Network was brilliant. They kept me up-to-date with everything and waited while I got it all sorted out. I would definitely recommend them. They are really friendly and helpful and everyone I have spoken to has been brilliant.”

Colleen , WA Health, Western Australia

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“I would like to say a very big thank you to Sean and Sherren for providing me with really outstanding customer service.”

Karen , WA Transport

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“The vehicle is everything we thought it would be as it’s our third Santa Fe, second diesel. A lot more refined than the earlier model, none the less both Joanna and myself are very happy with it. Right from the start when we spoke with Tim nothing was too much trouble and if there was a query then our contact persons were only too happy to attend to our questions with the utmost professionalism and courtesy. I have passed on to other staff members your company name and hopefully they will be in touch with yourselves in the future.”

Phil , Corrective Services

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“Everything great with my new car. Customer service was excellent was a pleasure doing business with your company.”  

Theresa , NT Dept of Health