For employers
As an employer, the biggest fear is the toll it might take on your time with everything else going on. We get that, being an SME.
We’ll guide you at every step
It can be overwhelming for employers to understand the ins and outs of novated leasing and what’s involved to get set up. Something we really enjoy is making the novated leasing process incredibly simple for employers.
We’re here to make it as transparent and easy to understand as possible, and guide you at every step, so you can offer something truly great to your team.
The Complete Employer Guide to Novated Leases
Read the complete novated leasing guide for employers, covering everything from what a novated lease is to the benefits, considerations and set up process.
Why Choose Us
Discover why we’re the best novated lease provider in Australia. See what makes us different, from our premium service to our flexibility, honesty and transparency.
How novated leasing works for employers
The novated lease can offer huge savings for employees, but best of all it’s simple for employers to set up (with almost no paperwork), and it’ll cost you nothing out of pocket. To quickly understand how it works and get set up: this is your cheat sheet. Remember: Your employees will thank (and possibly even love) you for it.
Before we tackle how it works, some quick facts:
A novated lease is a simple benefit to offer your team that can save them thousands. One way to look at it is that it’s like giving them a pay rise without it costing you anything, as they can access significant tax savings.
Given these savings, and the benefit to employees on their highest expense (after accommodation), novated leasing can be a valuable asset in your staff retention program and ‘employer of choice’ initiatives.
It’s completely cost neutral for you.
It’s easy to set up.
Your responsibilities as an employer
As an employer in a novated lease agreement, you’ll have the following responsibilities:
You need to pay the agreed salary sacrifice amounts in your regular pay cycle (we’ll give you these amounts to enter into your accounting software, and it’s ‘set and forget’).
You’ll need to account for any FBT liability, however, again, we’ll be able to guide you here and provide a solution resulting in $0 FBT liability.
And that’s it. You aren’t responsible for the leases themselves, and if a member of your staff who has a novated lease leaves for any reason, your obligation to make payments ends at that time. There are no ongoing obligations once their employment has ended.
If you choose us as your novated lease provider and get stuck at any time, you’ll have a dedicated account manager that you can contact for fast help.
Novated lease process for employers
Onboarding
It’s super simple to set up novated leasing. There’s bare minimum paperwork, just a one-page novation agreement which simply says that you’ll make payments on your employee’s behalf while they’re employed with you, and an invoice confirming the amount you will pay.
Employee setup
For each employee, we’ll provide you with the pre-tax and post-tax deductions to enter in your payroll system (e.g. MYOB, Xero, etc). You simply enter this and you’re done.
Payment options
You can send us payments on your employee’s behalf via direct debit or EFT, and this can be set on the same date the pay cycle happens, for simplicity. If you choose direct debit, you only need to sign the usual direct debit terms and conditions. That’s it.
Get in touch to find out more about offering novated leases
If you’re an employer hoping to offer novated leasing to your team, we can walk you through each step of the process and stay with you throughout the journey.
Leave your details or give us a call on 1300 888 594 and our team will be in touch.
FAQs for employers
Is there any cost for offering novated leasing to our employees?
Novated leasing won’t cost you anything. There’s no admin fees, and no cost to your business. You can help your employees reduce their tax and increase their income for free.
What’s involved in administering the lease?
Setting up novated leasing is surprisingly simple. There’s bare minimum paperwork – you only need to sign a one-page novation agreement, which simply says that you’ll make payments on your employee’s behalf while they’re employed with you. We’ll provide the pre-tax and post-tax deduction to enter in your payroll system – enter this and you’re done.
Once you’re set up it’s ‘set and forget’ and comes out of the pay cycle automatically each month. We take care of the reporting and record keeping, and can help your payroll team to set up the deductions. Want all the detail? We’ve mapped out the process in our employer guide.
Do we need to sign a contract?
You only need to sign a one-page novation agreement, which simply says that you’ll make payments on your employee’s behalf while they’re employed with you, and an invoice confirming the amount you agree to pay. We won’t hold you to any exclusivity agreement.
Most employers like to direct debit the payments, which we help set up. If you choose this option, you only need to sign the usual direct debit terms and conditions. That’s it.
Is my company eligible?
Unlike a lot of providers, we don’t have minimum staff requirements and we think exclusivity contracts belong in the bin. We help organisations of all sizes, including government bodies and corporations, but we particularly delight in the chance to help SMEs to optimise their offering.
As we know, salary sacrificing – and particularly novated leasing – can make the world of difference to smaller companies building a culture and striving to improve their team’s experience. If you’re paying your staff through a PAYG structure, then they’ll be eligible for a novated lease, and we’re happy to help you facilitate that – regardless of your size.
Will we have a fringe benefits tax (FBT) liability?
We’ll work on a solution that results in a $0 FBT liability for your business. And if you’re an FBT rebatable employer, we can provide you and your staff with the most cost effective solution that considers this. Our FBT reporting gives you all the detail, and will save you any hassle come tax time.