September 2022.

Did you know…?
September 2022

Tech Talk.

Salary Packaging / Novated Leasing

Exempt – FBT Status

Digital Paywise Card – use your Paywise Card for online payments!

As well as being able to use your digital Paywise card via Google Pay and Apple Pay for point of sale purchases, you can now use the card to make online payments.

To do this, you’ll just need to access your card number, expiry date and CVC number via the Paywise App.

To access your card, select ‘Cards’ from the footer menu in the app, then choose ‘View’. This will reveal your card number and expiry date. To view the CVC, tap the grey arrows at the top of the card.

Product Developments.

New Comprehensive Insurance Underwriter

Paywise wrote to all novated lease members in June 2022, communicating that we’d be reviewing the insurance market to ensure we’re offering the best possible insurance cover. We have assessed a number of providers in relation to product inclusions, levels of coverage, service and claims experience, and decided to change to an alternative provider, Aioi Nissay Dowa Insurance Company Australia Pty Ltd, locally known as Adica.

Adica is an Australian operated and regulated insurer (AFSL License Number 443540) and part of MS&AD Insurance Group Holdings Inc. – a world Top 10 ranking Insurance and Financial Service group with a global network of subsidiaries and branches in 49 countries and regions.

Under the Adica comprehensive insurance policy available for our members, GAP cover is an automatic inclusion. In the case of a total loss, the GAP component covers any difference between market value and the outstanding amount under a finance contract, up to an additional 25% of the market value.

This move has enabled Paywise to reduce premiums across our member base by 17.5%. This means an average premium decrease of $25.28 per premium per month or $303.36 per year.

We are writing to all Paywise members to advise them of the individual changes which will come into effect under the Paywise comprehensive insurance policy underwritten by Adica. This change will come into effect from 1 October 2022.


Labor’s new tax plans

In our July edition of the Paywise Newsletter, we updated our corporate contacts on the Labor Government’s planned FBT exemption for electric vehicles (EV’s).

Since then, our tax advisors, Grant Thornton, have advised that the Government has introduced draft legislation to give effect to a pre-election promise to exempt (non-luxury) electric cars from fringe benefits tax (FBT). Plug-in hybrid electric cars have been added to the exemption as well.

The exemption will cover zero or low emissions vehicles, being:

  • Battery electric vehicles
  • Hydrogen fuel cell electric vehicles
  • Plug-in hybrid electric vehicles – If the car has an internal combustion engine, it will only qualify if it can be recharged by an off-vehicle power source.

Second hand cars can qualify, but only if their first retail sale was on 1 July 2022 or later.

Grant Thornton advise that the exemption is to apply retrospectively from 1 July 2022, but only to cars first held and used by a person (i.e. any person) on 1 July 2022 or later. This is described as the first retail sale being on or after this date. Cars ordered prior to 1 July 2022 will qualify if they are not delivered until 1 July 2022 or later.

Paywise cannot provide quotes for novated leases under a draft bill. We must wait for the bill to become an Act of Parliament so that we can deal with the legislation and possibly further advice from Grant Thornton.

Paywise Sponsors the ‘Liberate Lives’ Charity Lunch in Perth

Paywise was proud to have sponsored the recent ‘Liberate Lives’, AFL-themed lunch in Perth, supporting the Ruben Centre.

The Ruben Centre is a non-profit, faith-based organization striving for an empowered and just Mukuru community by providing quality education, health, financial and social services to thousands of children and families in one of the largest slums in Nairobi. It also offers a vital source of community development programmes.

MC’d by Tim Gossage (an Australian sports commentator and Australian rules football coach based in Perth), the lunch featured sporting identities Glen Jakovich (ex-West Coast Eagles AFL player), Drew Petrie (ex-North Melbourne Kangaroos AFL player), Michelle Cowan (Australian rules football coach who was the inaugural head coach of the Fremantle Football Club in the AFL Women’s competition (AFLW)) and Geoff Hendriks (WAFL premiership player and father of Chicago White Sox pitcher, Liam Hendriks).

Tips and Hints.

My existing lease is coming to an end. What do I do?

The benefits of purchasing and running a car under a novated lease in Australia can be so advantageous that it would be a shame to lose that employee benefit, which can gross-up your salary – meaning, you are using your salary more wisely to afford more than you otherwise could.

So, when your existing novated lease is coming to an end, there is a significant choice to make to ensure you continue to experience the benefits of salary packaging your car.

If my lease is ending, how can I continue to enjoy the benefits of salary packaging my car?

Upgrade your car

Upgrade your car

Under this option you can trade-in your existing car or sell it privately. You can then use the proceeds to pay out the residual balance owing to the financier. Be aware, that lead-times on new cars are longer than they have been traditionally, so speak with Paywise as soon as possible.


Refinance your car

Under this option, Paywise can establish a new lease for your existing car’s residual balance. You’ll continue to have the benefits and convenience of the novated lease package you’ve previously enjoyed, while continuing to pay down the outstanding balance owing to the financier.


Payout the residual balance

At the end of the lease term, your car will have a residual balance owing to the financier, which you can choose to payout directly. Please note that this payment, as well as all future car running costs will be from your post-tax salary and you will no longer be eligible to the GST and PAYG tax savings that you’ve previously enjoyed.

Staff Spotlight.

Meet Daniel Mclean

Daniel is an Employee Benefits Consultant at Paywise and specialises in assisting with enquiries regarding members’ novated leases. Daniel has a very accommodating and empathetic manner which endears him to our members.

When did you commence with Paywise?

I commenced with Paywise September 2021.

Why did you want to work with Paywise?

I had moved to Melbourne and was looking for a new role in a new field and was recommended to apply by a friend who works at Paywise already.

What are your hobbies?

I like playing golf, attending music gigs and sports event.

Do you have any pets?

I have two cats, Jasper and Spicy.

If you were to come back to this life as an animal, insect, fish or bird, what would you come back as and why?

I’d like to come back as a house cat so I can spend my days sleeping and coughing up hairballs on someone else’s carpet for them to clean.

Favourite band and why?

Karnivool, a very technically sound band from Australia. Karnivool is an Australian progressive rock band formed in Perth in 1997.

Favourite movie or series and why?

Mr Robot. A very well made TV series that was great from start to finish. Mr. Robot is an American drama thriller television series created by Sam Esmail. It stars Rami Malek as Elliot Alderson, a cybersecurity engineer and hacker with social anxiety disorder and clinical depression. Elliot is recruited by an insurrectionary anarchist known as “Mr. Robot”, played by Christian Slater, to join a group of hacktivists called “fsociety”. The group aims to destroy all debt records by encrypting the financial data of E Corp, the largest conglomerate in the world.

Favourite AFL or NRL or Soccer Team (nationally or internationally) and why?

The ‘mighty Pies’, Collingwood in the AFL and Brisbane Broncos in the NRL. Collingwood runs in the family from my Nan’s side and the Broncos were the closest team to where I lived when I first started following the NRL.

Member Spotlight.

Gunjan, took possession of a Mazda CX-30, DM2W7A G20 Astina Wagon 5dr SKYACTIV-Drive 6sp 2.0i and said:

“You guys are awesome. I really appreciate all your consideration, time and effort with my application.”

Commendation and praise to Scott, and Emillie from the Paywise team who facilitated this Novated Lease.

Ranil, took possession of a Toyota Kluger, GSU55R GX Wagon 7st 5dr Spts Auto 6sp AWD 3.5i and passed on this message:

“It has been a pleasure working with you on the various novated leases over the years. The personal help that you have provided is always appreciated and has kept me going.”

Commendation and praise to Stephen and Mekha from Paywise who facilitated this Novated Lease.

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