These days, employees want more than a good-looking salary – they want benefits that add value to their remuneration package and enhance their salary.
As one of Australia’s fastest-growing novated leasing specialist, leaselab helps to make employee benefits accessible by providing businesses – small, medium and large – with novated leases.
Novated leases are a popular benefit as they offer huge savings for employees, allowing them to pay for a car and all of its running costs out of their pre-tax salary.
On average, leaselab customers save around $39,781 over the term of their lease. So, it’s easy to understand why novated leases have become a hot-ticket perk in demand by employees.
Attract and retain staff
When it comes to novated leases, everyone is a winner. Employees win because they’re saving thousands of dollars through salary sacrificing their car; and employers win because the benefit helps to attract and retain talented staff.
The Australian workforce is in the midst of a tight labour market with the unemployment rate still below 4 per cent, which means attracting and retaining employees is of utmost important – particularly right now.
In short, a tight labour market means employees hold the bargaining power and can afford to cherry-pick positions. Some highly skilled and talented workers might receive numerous job offers, so in order to stand out from the crowd, many companies are harnessing the power of benefits, such as novated leases, in order to entice candidates into roles.
Benefits like novated leases also help to retain existing staff as they can boost satisfaction within the organisation.
It truly is a win-win as the leases through leaselab are cost neutral for employers and they can also reduce or eliminate the need for company cars.
Huge tax savings for employees
Novated leases help workers get the car they want and save thousands of dollars at the same time.
It’s a simple process – an agreement is set up between the worker, their employer and leaselab – for a fixed period between one to five years.
The lease then lowers the employee’s taxable income and in turn, saves them thousands of dollars over the duration of their term – so it’s no surprise that they’re in high demand among employees. Running costs for vehicles can also be added to the lease, all of which further reduces an employee’s tax bill.
Once the lease is up, the employee can either upgrade to another vehicle, re-lease the existing vehicle or they may work towards ownership of the vehicle. It almost sounds too good to be true – except it’s not.
Want to know more about novated leases? Contact leaselab on 1300 888 594 or visit leaselab.com.au
