At Employment Hero, we’re always looking for new ways to make your workplace the one everyone wants to be part of.
We heard your feedback and are pleased to announce that we’ve partnered with Driva to provide you with a simple novated leasing option that allows your team to package car costs into their pre-tax salary.
So, what exactly is a novated lease?
A novated lease is an agreement between an employer, employee, and a salary packager that allows employees to package a car and its running costs (like fuel and servicing) into a single payment deducted from their pre-tax salary each pay cycle. The result? Savings all around!
Why is novated leasing so popular?
- Employee savings: Your team can enjoy significant savings on GST and income tax, putting more money back into their pockets.
- Employer benefits: Due to reductions in pre-tax salaries, you save on payroll tax, creating a net positive financial effect. It’s like giving your team a pay rise without additional costs to you!
- Easy setup: There’s minimal effort required and because you’re an Employment Hero customer, it’s already included in your subscription.
How does it work?
- Novated calculator: employees simply enter basic information, such as vehicle price and salary, to see how their take-home pay and potential savings could be affected.
- Personalised quote: a novated leasing specialist will give your employees a call to go over the details and finalise the quote.
- Application: employees provide necessary documents (e.g. payslips, ID) to Driva for final approval.
- Settlement: Driva handles the novation agreement via DocuSign, then liaises with the lender and dealership for car pick-up.
- Payroll: your team gets salary adjustment advice and instructions, followed by support from our packaging partner Driva for any payroll queries.
But don’t just take our word for it. Craig Belcher, CEO at Centra, recently shared his thoughts on the novated leasing process with Driva and Employment Hero:
“Jake’s had a fantastic experience with the whole process, it’s been really good to hear that he’s got some value out of using the Swag app and Employment Hero. The Driva experience has been super, and Jake even shopped the offer around—Driva had the best quote. As long as Jake’s happy, I’m happy.”
Feedback like this reinforces that offering perks like novated leasing can be a meaningful value-add for your team and a smart move for your business.
The best part? This is available as part of your subscription right now.
Click here to learn more and share this with your team today.
Disclaimer: This perk is available to employees of Australian Employment Hero customers with Benefits enabled. The information provided in this article is current as of 27 August 2024. The views expressed in this article are general information and opinions only, and are provided in good faith without taking into account your personal circumstances, financial situation or needs. Before acting on any information, you should consider whether it is appropriate for you and we recommend that you seek independent financial, legal and taxation advice. Certain information given is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article.
