What to ask your employer about salary packaging

Before applying for a novated lease, you need written confirmation that your employer offers salary packaging for vehicles. Not all do — and some have restrictions on vehicle type, value, or number of packaged cars per employee.

Ask HR these specific questions: Do you offer novated leasing? Is there a preferred provider or can I choose any? Is it fully maintained or finance-only packaging? Are there caps on vehicle value or number of leases? How long does employer sign-off typically take?

Government employers (federal, state, local) almost universally support novated leasing. Large corporates (ASX 200, multinationals) typically do as well. Small businesses with under 20 employees may not — but some novated lease providers will contact your employer and set up the arrangement at no cost to the business.

Your employer's payroll team needs to process two deduction types each pay cycle: pre-tax (salary sacrifice) and post-tax (ECM for non-EV vehicles). Most providers integrate directly with payroll systems, minimising admin burden. The employer also reports Reportable Fringe Benefits Amount (RFBA) on your payment summary.

If your employer is hesitant, share that novated leasing costs the business nothing — the employee pays all costs from their salary. The employer's only obligation is deducting and remitting payments, plus FBT reporting. Many providers offer employer toolkits explaining this.