Many companies in Australia now operate salary sacrifice arrangements. If you’re uncertain about how to salary sacrifice, you should speak to your employer to find out whether they offer this service.
What is Salary Sacrifice?
Salary sacrifice, also referred to as salary packaging or remuneration packaging, involves employees exchanging part of their gross salary to receive products or services of similar value, which may be appealing for being tax free. Salary sacrifice can be a financially savvy way of making expensive purchases, such as buying or leasing a car while simultaneously reducing your tax bill.
What if Your Employer Does Not Offer Salary Sacrifice?
If your employer offers salary packing arrangements, this can be the most convenient way to arrange novated leases and other services, as you simply have to agree to have a certain portion of your gross salary debited for other use. However, you can still salary sacrifice even if this is not offered by your company, when you deal directly with financiers or with a sponsorship organisation. Government employees are always able to arrange salary sacrifice through their employers.
How to Salary Sacrifice
Fleet Network administers novated leasing in locations across Australia like Geraldton, Albany and Perth in WA. We also offer other salary packing arrangements. If you want to lease a car through salary sacrifice, Fleet Network currently offers a flat 20 per cent on taxable deductions, as well as offering other benefits such as roadside assistance and fuel cards. Call 08 6555 3854 to find out more.