FAQ

These are some of the most common questions we are asked about vehicle salary packaging. The answers are of a general nature and should not be considered as advice, please discuss your questions with one of the Allwest Fleet team.

What is salary packaging?

Vehicle Salary Packaging is an arrangement were your employer enables you to include the purchasing cost (via a novated lease) and running costs (fuel. maintenance, insurance, registration etc) associated with owning a motor vehicle within your salary package.

Why would I salary package?

By salary packaging you could reduce the net cost of owning and running a vehicle by utilising pre tax dollars taking advantage of the potential tax savings.

Who can Salary Package?

Generally most government departments now have salary packaging available to their employees. Large private companies may also offer salary packaging. To find out if your employer offers salary packaging talk to one of the Allwest Fleet team.

What type of vehicle can I buy?

The vehicle must be a "car" as defined by the ATO:

  • motor cars, station wagons, panel vans and utilities - including four wheel drives (excluding panel vans and utilities designed to carry a load of one tonne or more)
  • all other goods carrying vehicles with a designed carrying capacity of less than one tonne
  • all other passenger carrying vehicles with a designed carrying capacity of fewer than nine occupants (no bikes, boats or buses)

How much can I spend on a vehicle?

Total vehicle cost upto $60,316 (above this figure there are luxury tax implications) some employer groups do not permit vehicles to be salary packaged when they exceed $60,316.

How many kilometers do I need to travel each year?

With the change in legislation, there is no minimum kilometre requirement.

Does the vehicle need to be brand new?

No, new or used upto 4 years old (vehicle to be no older than 8 years of age at the end of the lease)

Can I salary package my current car?

Yes, depending on its age and condition. If the vehicle is under finance we will need to review your current arrangements

How long is the contract?

The term of the contract is up to you, standard terms come in 2, 3, 4 or 5 years

Can I pay the car off early?

Yes, it is just a matter of paying out the residual value (balloon payment) amount plus outstanding remaining lease payments.

What happens at the end of the term?

At the end of the lease term you will be required to make a residual payment to complete the lease.

You have 3 options:

  1. Trade in the vehicle and upgrade to another vehicle
  2. Retain your current vehicle by refinancing and continuing with the benefits of salary packaging
  3. Pay out the residual and keep the vehicle

Do I find the car?

Through our network of suppliers we can assist you to source the vehicle at a discounted price.

How do I set it up with my employer?

We prepare all the paperwork for your employer and the salary packaging administration company before you take delivery of your car.

What happens if I change employer?

If your new employer offers salary packaging in most cases we can transfer your current arrangements to the new employer

How much does it cost?

We can show you the benefit and impact on your net take home pay similar to the examples you find on this web page

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What is vehicle salary packaging?
Why Allwest Fleet?
What are the tax savings?
Is Your Current Lease Ending Soon?