Salary Packaging is an arrangement between an employer and an employee, where the employee agrees to give up part of their future entitlement to salary or wages in return for the employer providing benefits of a similar value.
A novate lease may be a tax effective way to finance the acquisition of a new vehicle. Under a novated lease arrangement the emplyer take over all or part of your obligations on the relevant lease. The cost of the lease including the running costs and FBT payable by your employer are deducted from your salary before tax under an effective salary sacrificing arrangement which can result in lower cost for some employees. You should seek independent advice based on your own personal circumstances.
