Salary packaging, also known as salary sacrifice, is an Australian Taxation Office accepted way for you to pay for a range of items with pre-tax dollars. This means that you could pay less income tax and enjoy more savings!
The University provides in house salary sacrifice for benefits such as laptop/PDAs, childcare, and on-campus parking, with external providers available for salary packaging of novated car leasing, additional superannuation to your chosen superannuation fund, self-education and membership fees and subscriptions.
Salary packaging is available to all continuing staff members and may be available to fixed term staff members on a case-by-case basis. Limit services are available to casual staff members, academic visitors or students, and do not include novated car leasing.
Please read the University's Salary Packaging Procedure prior to considering a novated lease.
What is a Novated Lease?
A novated lease is a three party agreement between a staff member, the employer and a finance company. The staff member enters into a finance lease with the finance company and then a second document, called a novation document is used to transfer some of the lease obligations to the employer, noting all financial responsibility is with the staff member.
Once the novation agreement is in place, the employer is considered to be leasing the car. This allows the car to be treated like a 'company car' for tax purposes, which provides significant income tax and GST savings to the staff member.
To maintain the novated lease, the employer deducts a regular payment from the staff member's salary, and then remits this amount to the novated lease provider to pay for the cars running costs.
A novated lease includes all of a car's major running costs, including:
- Lease finance
- Comprehensive insurance
- Maintenance including tyres, servicing and repairs
- Roadside Assistance
Salary packaging and novated lease providers
There are three external companies that facilitate novated leases for ANU staff - Smart Salary and nlc.
For more information visit www.smartsalary.com.au or call on 1300 4 SMART (1300 4 76278).
For more information visit nlc.com.au or call on 1800 652 652. You can also register for one of their short webinars at nlc.com.au/webinars
How to enter into a novated lease?
Contact Smart Salary and/or nlc directly to receive a quote for your chosen vehicle.
They will assist you with the administrative steps, to the point of the novation agreement.Once you have received the novation agreement, please contact HRD.Remuneration@anu.edu.au or call +61 2 6125 3346 to arrange an approved signatory of your paperwork.
Please ensure you have read the ANU Salary Sacrificing Procedure prior to making an appointment for the signing of your lease. It is important that staff members seek financial advice from an independent financial adviser, tax consultant or accountant BEFORE considering any salary sacrificing options and entering into any salary sacrificing arrangement.