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Salary Packaging Examples

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Salary Packaging Calculations in Australia

Salary packaging is a smart way to make the most out of your pre-tax income. To give you a better idea of how salary packaging can save you money, we have created two real life examples comparing salary packaging with personal financing in Australia.

We have estimated 15,000km over a 5-year novated lease – this represents an ‘average’ package. For savings and salary packaging solutions specific to your needs, give us a call on 1300 738 601. As Australia’s most trusted provider of salary packaging and novated leasing solutions, our team can provide you with the best options and competitive rates.

(Note: Recent budget changes mean that there is no longer a minimum number of kilometres that you have to travel in order to make significant savings through salary packaging, which is great news!)

 

 

  • Example 1 - MITSUBISHI PAJERO $80,000 Salary
    Brian

    Brian is a 26 year-old police officer, employed full time, earning $80,000 a year. He has a Mitsubishi Pajero Sport GLX. He is leasing for five years, at 15,000km/yr. Brian saved $12,819 off the purchase price through our national fleet discounts. He is $2,770 per annum better off.

    Novated Benefit
     Not Packaging Salary Packaging
    Annual Salary (Pre-tax)$80,000$80,000
    Less motor vehicle$0$6,847
    Less FBT$0$0
    Less GST on employee contribution$0$697
    Add input tax credits$0$1,320
    Taxable Salary$80,000$73,776
    Tax (inc Medicare)$19,147$17,000
    Net salary pre-employee contribution$60,853$56,776
    Employee contribution (vehicle)$14,515$7,668
    New cash salary (after input tax credits)$46,338$49,108
    Net packaging benefit per year*$2,770
    Novated Advantage$13,849


    *Please note: Calculations are based on recommended retail prices of vehicles and do not include national fleet discounts. Budgeted running costs are estimates only and will vary according to driving conditions, location, price of fuel and distance travelled. Our consultants are happy to provide accurate quotations specific to your vehicle requirements.

  • Example 2 - TOYOTA COROLLA $80,000 Salary
    Hayley

    Hayley is a 32 year-old teacher, employed full time, earning $80,000 a year. She has a Toyota Corolla Ascent Sport Hatchback. She is leasing for five years, at 15,000km/yr. Hayley saved $2,614 off the purchase price through our national fleet discounts. She is $2,217 per annum better off.

    Novated Benefit
     Not Packaging Salary Packaging
    Annual Salary (Pre-tax)$80,000$80,000
    Less motor vehicle$0$5,480
    Less FBT$0$0
    Less GST on employee contribution$0$467
    Add input tax credits$0$966
    Taxable Salary$80,000$75,018
    Tax (inc Medicare)$19,147$17,428
    Net salary pre-employee contribution$60,853$57,590
    Employee contribution (vehicle)$10,620$5,140
    New cash salary (after input tax credits)$50,233$52,450
    Net packaging benefit per year*$2,217
    Novated Advantage$11,085


    *Please note: Calculations are based on recommended retail prices of vehicles and do not include national fleet discounts. Budgeted running costs are estimates only and will vary according to driving conditions, location, price of fuel and distance travelled. Our consultants are happy to provide accurate quotations specific to your vehicle requirements.

What is Salary Packaging?

Salary packaging uses your gross income (your pre-tax earnings) for payments to help you maximise your money. And because you’re using your pre-tax earnings, salary packaging helps lower your taxable income and increases your take-home pay, allowing you to save more.

Salary packaging isn’t just limited to novated car leases, it can be applied to a range of other expenses and services too. However, these salary packaging options and inclusions are dependent on your employer.

In Australia, salary packaging can be applied to:

  • Cars
  • Mortgage repayments
  • Rent
  • Superannuation
  • Computers
  • Utility bills
  • Meals and entertainment

We help everyday Australians novated lease their way to a new car

For more than 20 years, the Fleet Network team have been helping companies and government employees gain access to tax bill reductions and salary maximisation. Our novated lease consultants specialise in securing the best deals on cars. So, no matter which vehicle make or model you choose, you can save thousands by using your pre-tax salary to pay for the finance and all running costs in one regular repayment.

Get in touch with one of our friendly experts for a free quote!

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We are dedicated to getting you the best result on your novated car lease.

Philippa, Royal Australian Navy
Very happy with the service offered, Fleet Network did a great job in working with me to get me quickly back on the road in a new car.
Philippa, Royal Australian Navy
Melissa, WAI Group WA
The team at Fleet Network were fantastic. I have never leased a car before and they made the process easy to understand and got me a great deal. Their customer service was 10/10 and I would highly recommend anyone wanting to lease their next vehicle to get in contact Fleet Network. I'm enjoying my new wheels! Thank you to Emily Dudley, Ryan Murphy & Garrick Ibbotson.
Melissa, WAI Group WA
Antony, Don Dale Youth Detention Centre
Fleet Network is a great option, they work fast and come back with detailed quotes on each vehicle also offer other vehicles in the same range with deals that are on. Very helpful, would highly recommend.
Antony, Don Dale Youth Detention Centre
Wayne, Power & Water NT
I would highly recommend Fleet Network as the preferred provider for Novated Leasing as this is very important to me. This is my 3rd time and they have always gone above and beyond to find the vehicle that I wanted. Even getting me the last one in Australia!
Wayne, Power & Water NT
Tandin, Kalgoorlie Prison
I highly recommend Fleet Network. I asked quotes from other companies and in contrast found that with Fleet Network there are no hidden cost and what they quote on is the price you get till the end. Customer service is quick and friendly.
Tandin, Kalgoorlie Prison
Juanita, Leurssen Australia
The team at Fleet Network made transferring my loan super easy. Fast, efficient and friendly service meant the changeover was stress-free. Thank you to Ryan, Kerry, Emily, Nicole and Taylah who made it such a pleasurable experience. Highly recommend Fleet Network.
Juanita, Leurssen Australia
Gerli, West Kimberley Regional Prison
Michelle and Llane, thank you for everything that you and your workmates have done for us in relation to our new beauty. It was very nice to walk into your office with everyone being so welcoming. We are very happy with our choice and had amazing 2500km drive to Derby WA with no faults. She is amazing and has heaps buttons to get used to it, it's so smooth and has already shown her charm to others as well. Thanks to your amazing and fast service we were very lucky to pick it up last week and get home before road closures, she is now a true Kimberley Girl for sure, haha.
Gerli, West Kimberley Regional Prison
Gail, WA Education
Dear Sir/Madam. Today I have been informed by your senior consultant, Justin Smith, that my application to enter into a novated lease arrangement has been approved. The exceptionally high standard of service that has been provided by both Justin and Vicki compels me to provide you with this feedback. I rang to enquire about your novated lease arrangement shortly before New Year 2011 and was greeted warmly by Vicki. (more…)
Gail, WA Education
Mark, Army
Everything is going very well. The whole process was excellent and I am very happy. Thank you.
Mark, Army
Karen, WA Transport
I would like to say a very big thank you to Sean and Sherren for providing me with really outstanding customer service.
Karen, WA Transport
Sarah, Dept of Education
Jodie and Tim were excellent to work with, they helped me understand exactly what I needed to do and Jodie guided me through the whole experience expertly and patiently.
Sarah, Dept of Education
De, WA Dept of Human Services
Can I just say that I love driving my new car. Thank you and your staff very much for your assistance. Ann is so looking forward to meeting with you. We are all going to be driving new cars in this office at this rate. Thanks again.
De, WA Dept of Human Services
Donna, WA DOCS
Thanks Jodie, I would just like to say that you have been fantastic with your help through this whole car process and I really appreciate everything that you have done.
Donna, WA DOCS
Craig, WA Health
Yes, everything is going great for this vehicle so please thank Frank Agostino, Vicki Scott, Sasha Carruthers and Tammie Maciejak for all their help.
Craig, WA Health
Theresa, NT Dept of Health
Everything great with my new car. Customer service was excellent was a pleasure doing business with your company.
Theresa, NT Dept of Health
Shirley, WA Education
I’d like to thank you and the Fleet Network team for the professional and friendly assistance I received throughout the process and renewing my car. The whole team ensured I knew everything that was happening and a special thanks to the lady who I signed the final paper work with on the hand over day, she was so nice. I have since mentioned you guys and the service you provide to a few of my friends and hope that if they choose to go down this path then they will certainly be looked after. (more…)
Shirley, WA Education
Rudsyn, Defence
I would like to say a big thank you to Sasha who provided me a very valuable service, she has been very patient, friendly and always providing me up dates on my current vehicle on order. I currently work for defence and as you probably do not know our movements can be stressful at times and have requested to have my vehicle delivered to me before the delivery date of December 12. (more…)
Rudsyn, Defence
Jo-Anne, QLD Dept of Communities
Everything is going well with my vehicle, I love it. I am more than happy with the assistance that I received during the process and would happily recommend Fleet Network to others.
Jo-Anne, QLD Dept of Communities
Jason, WA Education
Your customer service during the leasing process was outstanding, as it was last time. We would not hesitate to lease through Fleet Network again when our lease is up.
Jason, WA Education
Brian, NSW Education
I contacted Fleet Network over the weekend Tim contacted me Monday and put me straight onto the right track, no frills, just what a customer wants to hear! We threw the figures around and got quotes on a few vehicles. He explained and helped me understand everything! (Much appreciated!) Tuesday afternoon I agreed to go ahead with the car, contacted by Jodie who walked me through everything, explained everything! (more…)
Brian, NSW Education
Steve, WA Education
I would just like to take the time to say thank you for the outstanding service I have received, and continue to receive from you and your team at Fleet Network. I have enjoyed a decade long relationship with the company and am always impressed, yet never surprised, by the level of professionalism and customer care you show. Your willingness to go that little bit further, and work that little bit harder, to secure the car of choice and to organise the best deal for me and the family was greatly appreciated. (more…)
Steve, WA Education
Phil, Corrective Services
“The vehicle is everything we thought it would be as it’s our third Santa Fe, second diesel. A lot more refined than the earlier model, none the less both Joanna and myself are very happy with it. Right from the start when we spoke with Tim nothing was too much trouble and if there was a query then our contact persons were only too happy to attend to our questions with the utmost professionalism and courtesy. (more…)
Phil, Corrective Services
Kevan, Qld Education
Sasha at Fleet Network was exceeding professional and is really looked after me extremely well!!! My first contact was with Steve Asher and then Frank rang me and worked towards satisfying all my requirements! Would highly recommend them to anyone, which I have already done on three occasions already!
Kevan, Qld Education
Colleen, WA Health, Western Australia
This is the third car that I have bought through Fleet Network. I change my car every three years and this time I wanted a VW Beetle convertible, my dream car, and there was only one left in Australia. Fleet Network managed to find the car for me and get it sent over from the dealer over east. They were fantastic. They then held onto it for me while I got my other car ready for exchange, a process that was delayed due to hail damage from the storms. There were further delays as things got held up with the insurance company but Fleet Network was brilliant. They kept me up-to-date with everything and waited while I got it all sorted out. I would definitely recommend them. They are really friendly and helpful and everyone I have spoken to has been brilliant.
Colleen, WA Health, Western Australia
Garry, Department of Indigenous Affairs, Western Australia
This is the third vehicle we have bought from Fleet Network. We keep going back because we get such great service and good value for money from the vehicles we buy. We’ve currently got a Honda Odyssey Luxury, which is a great family car. We always do our own research first and then just call them up and tell them what we want. They source it, give us the price, do all the paperwork and then we just go and pick it up. It’s so simple. (more…)
Garry, Department of Indigenous Affairs, Western Australia
Troy and Karen, State Government Employee, New South Wales
We have a big family and when we first started dealing with Greg from Fleet Network earlier this year he pushed and pushed to get us into a car big enough for us all and one that would work within our budget. He just wouldn’t give up! We now drive a Hyundai iMax, which is perfect for us. We rang him up so many times with questions but nothing was ever a hassle for him. (more…)
Troy and Karen, State Government Employee, New South Wales
Antonio, Department of Education, Western Australia
I first started dealing with Fleet Network in 2002 when I got in touch and spoke to Matt. I was a bit wary as I had never financed a car this way before but Matt talked me through everything and put me at ease. I told him the things I was looking for in a car and before I knew it he had arrived with a Toyota Corolla for me to test drive. I tested it, he went through the costs, which were almost negligible, and the car has been going beautifully ever since. (more…)
Antonio, Department of Education, Western Australia
Memory, NT Dept Children and Families
Everything is fantastic with my car and the service I have received was great, can’t thank you enough. Thanks Carole, I do appreciate your follow up. Well, so far everything is ok, if I have any queries I will definitely contact you. The customer service was quite good, I was impressed by consistent and up to date communication throughout the process.
Memory, NT Dept Children and Families
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