Providing an attractive salary package can attract top talent to your company while as the owner of a small of medium-sized business anywhere in the southern hemisphere country of Australia, ensuring that your employees receive the best possible remuneration is imperative in order to develop a motivated and loyal workforce. Indeed, in the increasingly competitive job market across the country, the ability to offer potential employees an attractive salary packaging option can help to retain top talent as well as enhance the overall levels of job satisfaction within your company unit. One type of innovative approach to the provision of salary packaging for your employees is the use of novated leasing, a method of providing benefits to your employees, especially allowing an employee to lease a vehicle through a three-way agreement between the employee, the employer and the leasing company.
- Increase disposable income
The first main reason to consider the use of a novated lease as part of a salary package is the potential to increase your employees’ disposable income at the end of the month. Likewise, by allowing your employees to pay for any make and model of vehicle lease through their pre-tax salary deductions, you can effectively reduce the amount of taxable income that they will have to pay to the Australian government. This particular option means your employees could potentially end up with more take-home pay, especially when compared to making the purchase of a vehicle outright or through the use of traditional financing options.
- Convenience and flexibility
The second significant benefit of using novated leasing as part of a salary package is the convenience and flexibility that it can give to your employees. Moreover, the management of vehicle expenses can often be a challenge for some people, especially when it involves dealing with many different bills and service providers. However, through the use of novated leasing, all vehicle-related costs, including maintenance and servicing, tax and insurance and the registration of the vehicle, can be bundled into a single monthly payment that is deducted at source. This particular method can also streamline the approach as well as simplify the amount of financial planning for your employees because they will no longer have to worry about any unexpected expenses or the burden of carrying out the administrative tasks that are often associated with owning a vehicle in Australia.
- Attract and retain top talent
Lastly, the use of novated leasing can serve as a brilliant tool that can attract and retain the best talent in your particular industry. Moreover, in the increasingly dynamic job market across Australia, job seekers increasingly want to find employers that can offer a range of innovative and advantageous benefits.
- Increase disposable income
- Convenience and flexibility
- Attract and retain top talent
Therefore, to summarise, the use of novated leasing as part of a salary package can provide your business with a plethora of benefits that make it an attractive option, especially because it can increase your employees’ disposable income, offer unparalleled levels of convenience and enhance the ability of your business to attract and retain the best talent.
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Eamon