A Better Way to Reward Employees

As an employer, you are aware of the struggles businesses are facing with staff retention. According to the most recent data from The Australian Bureau of Statistics, job mobility in the country is at its highest level since February 2012. More and more Australians are switching jobs or seeking a pay increase to cover the rising cost of living. This economic factor collides head on with the stark reality that not every business in Australia is making record profits. So how can you balance these two seemingly conflicting economic realities? As a decision maker, you're always looking for ways to attract, retain and reward your employees. Staff that are appreciated are invested in the growth of your business. Good employees are the cornerstone of any successful organisation. A win/win for everyone! This is where offering novated leasing to your employees may just be the answer you are looking for.

What is a novated lease and how does it work?

The concept of a novated lease is quite simple. It involves a three-way deal between you (the employer), your employee and a leasing company that’s designed to help your employee save money on their car. The employee chooses the car they want, and the leasing company sends an email to the employer with the simple steps to set it up. With your approval, payments for the vehicle and its associated costs come out of the employee’s pre-tax salary via your payroll department.

Why is offering novated leasing good for your business?

Offering novated leasing to your employees unlocks a range of benefits for your business. For starters, it is an easy way to boost the take-home pay for your employees. Employees use their pre-tax income for car payments, reducing their taxable income. If the vehicle is an EV it carries no fringe benefits tax, making this particular vehicle class incredibly attractive to offer to employees in a salary packaging arrangement. Novated leasing unlocks significant savings on the car itself. Suddenly your employees have access to fleet discounts which are negotiated by the provider. Employees also save the GST on the vehicle purchase price and on the operating costs of the vehicle. Giving your employees a good deal is always a positive for any business. EV novated leasing is a simple, low cost and easy way to genuinely begin greening your business. Employees and stakeholders aren’t shy about holding organisations to account regarding their environmental footprints. We have also seen examples of organisations making false or misleading environmental claims. This has resulted in the ACCC investigating particularly egregious instances of ‘greenwashing’ and cracking down on claims made by certain companies. Thus, it is important for decision makers to do their due diligence before implementing some of these green initiatives.

Getting it right – partner with a trusted novated leasing company!

With the Novated Leasing Industry under the media microscope lately it’s crucial to choose the right novated leasing company and avoid being locked in with any one provider. Minimal regulation within the industry means employers must ensure their business provides choice, flexibility and transparency to employees. It is important to talk to a trusted novated leasing specialist that provides fully transparent leases tailored to each employee. The team at CarBon are committed to ensuring your employees maximise their tax savings with minimal effort from you. Contact CarBon today about offering your employees the benefits of EV novated leasing!