As an HR or Payroll professional, your "To-Do" list is a high-stakes balancing act: attracting top talent, keeping your current team engaged, and doing it all without blowing the budget.
Enter Salary Packaging: the rare employee benefit that feels like a massive win for staff but costs the company exactly $0 to provide. If you haven’t reviewed your program lately, you’re missing out on the most powerful retention tool in the current market.
While a Novated Lease is often the "star" of the show, a comprehensive salary packaging program offers a suite of benefits that address the diverse needs of your workforce.
1. The Strategic Advantage: Financial Wellbeing
With inflation impacting every household, employees are looking for "smarter pay," not just "more pay."
Boost Take-Home Pay: By paying for expenses like novated leases, and work-related tech with pre-tax dollars, employees lower their taxable income. This can save a mid-level earner over $5,000 a year in tax (essentially a pay rise funded by the ATO, not your bottom line.)
EVP Differentiation: A robust packaging program signals that your organization is sophisticated and cares about the "Total Wellbeing" of its staff.
2. The 2025 Game Changer: FBT-Free Electric Vehicles
The single biggest driver of novated leasing right now is the Federal Government’s Electric Car Discount.
Zero FBT Liability: Eligible EVs (under the Luxury Car Tax threshold of $91,387) are entirely exempt from Fringe Benefits Tax.
Sustainability Goals: It’s the fastest way to help your workforce transition to green energy, contributing directly to your company’s ESG targets.
Greener Morning Commute: Whether you're commuting to work, running errands, or just enjoying the ride, novating an e-bike offers a sustainable solution that fits modern lifestyles.
3. Payroll’s New Best Friend: "Set and Forget"
Payroll managers often worry that salary packaging means "more paperwork." In reality, modern programs are designed to be operationally invisible.
Great salary packaging programs don't happen by chance. They are built on understanding your organization to design a tailored solution to your workforces needs. Payroll are the engine room of any salary packaging program. Their precision ensures employees get their benefits seamlessly, every pay cycle.
Cost Neutrality: The program is funded by the employee. In many cases, it even reduces your payroll tax because the gross taxable wage bill is lower.
Zero Liability: If an employee leaves, the lease and packaging arrangements go with them. Your business is never "stuck" with a car or a debt.
Automated Deductions: Remunerator handles the heavy lifting, providing simple deduction files that plug straight into your payroll software (Xero, MYOB, Workday, etc.).
Is Your Benefits Program Stuck in Neutral?
A robust benefits program isn't about the number of perks; it’s about the impact. Salary packaging provides monthly financial relief that employees see immediately on their payslips.
It’s time to move beyond standard health insurance and fruit bowls.