Salary Sacrifice

We're dedicated to helping small businesses thrive by offering innovative solutions that drive growth and employee satisfaction. One such solution gaining traction is providing salary sacrifice company cars for employees.

While salary sacrifice company cars are often associated with large corporations, there's no reason why small businesses can't leverage this benefit to their advantage. At Smart Business Solutions, we specialise in helping small businesses implement innovative strategies that drive growth and employee satisfaction.

Benefits for Employers

Attract and Retain Talent:
Offering salary sacrifice company cars can make your business stand out in a competitive job market. It's a valuable incentive that can attract top talent to your team and enhance employee retention.

Tax Efficiency:
Salary sacrifice arrangements can provide tax benefits for both employers and employees. By structuring the arrangement effectively, you can reduce your business's tax liability while offering a desirable benefit to your employees.

Enhanced Productivity:
Providing company cars can improve employee satisfaction and morale, leading to higher productivity levels. Employees may feel more valued and motivated knowing they have access to a company vehicle for both work and personal use.

Professional Image:
A fleet of company cars can enhance your business's professional image and credibility. It instills confidence in clients and stakeholders, showcasing your commitment to excellence and reliability.

Benefits for Employees

Financial Savings:
Salary sacrifice arrangements allow employees to pay for their company car using pre-tax income, resulting in significant cost savings compared to purchasing or leasing a vehicle independently. It's a cost-effective way for employees to access a reliable mode of transportation.

Convenience and Flexibility:
Company cars offer employees convenience and flexibility, eliminating the need to rely on public transportation or personal vehicles for work-related travel. It streamlines commuting and business trips, enhancing efficiency and work-life balance.

Access to Premium Vehicles:
Small businesses can leverage salary sacrifice arrangements to provide employees with access to premium vehicles they may not afford otherwise. This perk adds value to the overall compensation package, attracting and retaining top talent.

Reduced Administrative Burden:
By centralising vehicle management and maintenance, employees can enjoy a hassle-free experience with their company car. It eliminates the need for employees to navigate the complexities of vehicle ownership, saving time and stress.

Tax Benefits with Electric Vehicles (EVs)

With the introduction of new tax rules in Australia surrounding Electric Vehicles (EVs), employees who may not typically be eligible for motor vehicle deductions can now achieve a 100% tax deduction for their car. This means significant savings for your employees without costing your business a cent. It's an incredible opportunity to provide an environmentally friendly option while maximising tax benefits for both parties.

What else can be salary sacrificed other than vehicles?

Salary sacrificing is not limited to vehicles; it can also apply to a range of other items such as laptops, iPads, or mobile phones. If these items are otherwise tax-deductible, there is no Fringe Benefits Tax (FBT) liability. While salary sacrifice is commonly associated with vehicles, it's important for employers to recognise the value of offering this benefit for other suitable purchases. This can be a valuable incentive for employees and can help them save on their taxable income, providing a win-win situation for both parties involved.