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Salary Packaging Calculations in Australia

Salary packaging is a smart way to make the most out of your pre-tax income. To give you a better idea of how salary packaging can save you money, we have created two real life examples comparing salary packaging with personal financing in Australia.

We have estimated 15,000km over a 5-year novated lease – this represents an ‘average’ package. For savings and salary packaging solutions specific to your needs, give us a call on 1300 738 601. As Australia’s most trusted provider of salary packaging and novated leasing solutions, our team can provide you with the best options and competitive rates.

(Note: 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 packaging, which is great news!)

 

 

  • Example 1 - MITSUBISHI PAJERO $80,000 Salary
    Brian

    Brian is a 26 year-old police officer, employed full time, earning $80,000 a year. He has a Mitsubishi Pajero Sport GLX. He is leasing for five years, at 15,000km/yr. Brian saved $12,819 off the purchase price through our national fleet discounts. He is $2,770 per annum better off.

    Novated Benefit
     Not Packaging Salary Packaging
    Annual Salary (Pre-tax)$80,000$80,000
    Less motor vehicle$0$6,847
    Less FBT$0$0
    Less GST on employee contribution$0$697
    Add input tax credits$0$1,320
    Taxable Salary$80,000$73,776
    Tax (inc Medicare)$19,147$17,000
    Net salary pre-employee contribution$60,853$56,776
    Employee contribution (vehicle)$14,515$7,668
    New cash salary (after input tax credits)$46,338$49,108
    Net packaging benefit per year*$2,770
    Novated Advantage$13,849


    *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 2 - TOYOTA COROLLA $80,000 Salary
    Hayley

    Hayley is a 32 year-old teacher, employed full time, earning $80,000 a year. She has a Toyota Corolla Ascent Sport Hatchback. She is leasing for five years, at 15,000km/yr. Hayley saved $2,614 off the purchase price through our national fleet discounts. She is $2,217 per annum better off.

    Novated Benefit
     Not Packaging Salary Packaging
    Annual Salary (Pre-tax)$80,000$80,000
    Less motor vehicle$0$5,480
    Less FBT$0$0
    Less GST on employee contribution$0$467
    Add input tax credits$0$966
    Taxable Salary$80,000$75,018
    Tax (inc Medicare)$19,147$17,428
    Net salary pre-employee contribution$60,853$57,590
    Employee contribution (vehicle)$10,620$5,140
    New cash salary (after input tax credits)$50,233$52,450
    Net packaging benefit per year*$2,217
    Novated Advantage$11,085


    *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.

What is Salary Packaging?

Salary packaging uses your gross income (your pre-tax earnings) for payments to help you maximise your money. And because you’re using your pre-tax earnings, salary packaging helps lower your taxable income and increases your take-home pay, allowing you to save more.

Salary packaging isn’t just limited to novated car leases, it can be applied to a range of other expenses and services too. However, these salary packaging options and inclusions are dependent on your employer.

In Australia, salary packaging can be applied to:

  • Cars
  • Mortgage repayments
  • Rent
  • Superannuation
  • Computers
  • Utility bills
  • Meals and entertainment

We help everyday Australians novated lease their way to a new car

For more than 20 years, the Fleet Network team have been helping companies and government employees gain access to tax bill reductions and salary maximisation. Our novated lease consultants specialise in securing the best deals on cars. So, no matter which vehicle make or model you choose, you can save thousands by using your pre-tax salary to pay for the finance and all running costs in one regular repayment.

Get in touch with one of our friendly experts for a free quote!

We are dedicated to getting you the best result on your novated car lease.