Can any SA State Government Employee qualify for a Novated Lease on a Vehicle?
The following is a simple guideline for all employees wanting to establish a SA State Government Novated Lease.
The South Australian Government allows public sector employees to access salary sacrifice through the South Australian Government Salary Sacrifice Arrangements (“SAGSSA”). SAGSSA offers all public sector employee access to salary sacrifice. The decision to salary sacrifice is solely for each employee and each employees is responsible for seeking financial advice when considering salary sacrifice.
SA Government describes Salary Packaging as “an arrangement between an employer and employee where the employee agrees to forgo part of their future salary or wages in return for the employer providing them with benefits of similar value. Effectively, part of an employee’s taxable income is redirected from Pay As You Go (“PAYG”) income tax provisions to Fringe Benefits Tax (“FBT”) provisions. These funds are expended on approved salary sacrifice items. In individual circumstances and subject to specific taxation provisions these arrangements can increase an employee’s after tax remuneration at no additional cost to an employer. Salary sacrifice arrangements must be prospective, and cannot be put in place retrospectively.”
SAGSSA is available to all SA public sector employees.
For an employee to enter into a Salary Packaging arrangement there are several documents required to be completed in the process;
- SAGSSA Agreement – This agreement is executed by the employer and the employee. The employer is approving the employees right to enter into the agreement and the employee is agreeing to all of the SAGSSA terms and conditions.
- Salary Packaging Agreement – The employee agrees to all of the Terms and Conditions of the agreement.
- Deed of Novation – Is part of the leasing documents that bind the employee, employer and leasing company together and allows for all of the taxation benefits to occur.
Within the SA Government’s SAGSSA guidelines document some of the following guidelines are set specifically for Novated Leases;
- Employees may enter into arrangements for a novated lease for motor vehicles.
- SAGSSA novated lease arrangements provide a range of choices for employees including:
- Source and selection of vehicle
- Leasing arrangements.
- Management of the lease/vehicle support Maxxia do not provide vehicles or leasing services directly and source these for the employee as part of the SAGSSA service. Maxxia can assist in obtaining a vehicle if required.
- Employees may source their own vehicle.
- There are a range of options regarding second hand vehicles, including vehicles currently owned by the employee. Novated leases require the employee to enter into a lease arrangement compliant under Federal tax law.
- Employees may source their own lease finance. There are a range of other considerations which may be beneficial to, or provide flexibility, for the employee on which Maxxia provides comprehensive information.
- An employee can have an arrangement under which:
- Maxxia fully services the lease and all aspects of the operation of the vehicle such maintenance, servicing, fuel and so on.
- The employee may self-manage the arrangement, under which Maxxia provides only the minimum administrative services to comply with federal tax law. Employees must enter into a Deed of Novation.
Vehicle Solutions Australia have provided a competitive SA State Government Novated Lease option for over 7 years. We understand and comply with every requirement under SA Governments SAGSSA guidelines. Vehicle Solutions Australia offer some key benefits;
- Local staff available on or offsite for small group or one on one presentations.
- A competitive, transparent and plain English novated lease quote.
- Assistance with vehicle pricing and sourcing through our online website Motorbuys.
- All SA government and Maxxia paperwork completed, explained and co-signing with the relevant SA Government delegate authorities.
- Fast vehicle delivery within days not weeks. (Pending vehicle availability).
Permanent full time? Part time? Casual? Contract? Income level, HEC’s debt, time in service? Probation periods? We cover all criteria’s in one guide.
If you would like to compare your a novated lease quote go to our Novated lease calculator or call our local Adelaide office on 8338 4427 or 1300 990 880.
If you haven’t found your new car yet but know what you want try our online new car buying site www.motorbuys.com.au. Motorbuys is designed so that you can choose the exact car in a few simple clicks. Motorbuys is the only site that allows you to choose the exact colour and accessories so that dealers can provide an accurate quote, so you can make a more informed decision.
To obtain a pre-approval on your lease click HERE