Employer Guide to Novated Lease

So what exactly is Salary Packaging?

Salary Packaging is a simple way of using your staff’s pre-tax salary to pay for certain expenses before their income is taxed, essentially allowing them to enjoy the benefits of paying less tax and accessing more of their income, so they can make their money go further for the things they love.

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Now let’s see it in action!

You the Employer

As the employer, you will make regular, automated payroll deductions from your staff’s pre-tax salary to cover the cost of their chosen salary packaging benefits.

Your Employees

Your employees will agree to have pre-tax salary deductions made in exchange for enjoying their selected benefits which could include a new car via a novated lease, or a range of approved items tailored to their personal or professional needs.

Paywise

We’ll take care of the rest! Paywise will procure your staff’s selected items, set up the necessary agreements, and handle all the administrative, contractual, and compliance details, so your team can begin enjoying their new benefits right away.

Your Industry

Browse benefits by industry to see what’s available for your employees, or speak with one of our dedicated Account Managers to explore your options in detail over the phone.

Private

Government

Health

Education

Charities

Available Benefits

Depending on your organisation’s industry, Paywise-registered employers can offer some or all of these incredible pre-tax benefits.

Why offer novated leasing to your staff?

A novated lease is a form of salary packaging benefit available to almost all employers, and is a simple, cost-effective way to enhance your staff benefits package and attract, retain and reward top tier talent. A novated lease allows employees to pay for their car and running costs using pre-tax income, potentially saving them thousands, and making it an attractive option for a wide range of employees.

For employers, it’s an easy benefit to setup and is entirely cost-neutral to your organisation, making it a no-brainer for employers of all sizes.

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How does it all work? Our FAQs for employers have you covered!

What is salary packaging, and how does it work?

Salary packaging allows employees to use their pre-tax income to pay for everyday expenses like rent, mortgage payments, and work-related items, reducing their taxable income and increasing take-home pay. Paywise manages the process seamlessly, ensuring compliance and ease for both employers and employees. *Note – most salary packaging benefits are available only to particular industries. Speak to our team.

How does novated leasing work for employers?

Novated leasing enables employees to pay for a car and its running costs using pre-tax income. Employers simply facilitate the payment through an automated payroll deduction, while Paywise handles the paperwork, employee setup, and ongoing management. It’s a simple, cost-neutral benefit that can save your team thousands on their new, used or even existing vehicle.

What are my responsibilities as an employer?

Your primary responsibility is to process agreed pre-tax deductions through payroll for participating employees. Paywise provides clear guidance and all necessary documentation.

Is there any liability for the employer?

No, the financial liability for leases rests entirely with the employee. If an employee leaves your organisation, their lease travels with them, and your obligations cease.

Will offering these benefits cost my business anything?

No, salary packaging and novated leasing are cost-neutral for employers. Paywise works with you to ensure no hidden fees or costs, making it a hassle-free addition to your benefits program.

What happens if my employee leaves?

The novated lease remains with the employee. They continue managing their payments independently or transfer the arrangement to a new employer. Your obligations end when their employment with you ceases.

Why should I choose Paywise?

Paywise specialises in making salary packaging and novated leasing simple, efficient, and rewarding for employers and employees alike. With tailored support, a dedicated relationship manager, and proven expertise, we ensure the process is seamless for organisations of all sizes.

A little about Paywise

Since 1989, Paywise has helped Australians maximise their take-home pay with simple, stress-free salary packaging solutions. With over 30 years of experience, we’re committed to delivering exceptional service, so you can enjoy the benefits without the hassle.

We’re passionate about putting our members first, and with industry-leading response times, our team is here to provide fast, effective support every step of the way.

Ready to get started?

New employers can register with Paywise using the webform below.

Or, if you’d prefer to speak with a Paywise Account Manager to discuss your salary packaging or novated leasing options in more detail, please visit our Account Manager Directory.

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Ready to Level Up Your Employee Benefits?

Salary Packaging and Novated Leasing are a great way to attract, retain and reward staff with huge tax savings on the purchase and running costs of their vehicle, and for certain industries a range of other living expenses.