All costs relating to the operation of a vehicle, including FBT costs (if applicable), are included in your salary sacrifice provisions. The provisions are deducted each pay period and remitted to Enlist where they are credited to your Salary Package Account.
A budget for fixed salary sacrifice provisions is calculated by Enlist and agreed to by you at the start of a novated lease arrangement. During consultation, you are offered an opportunity to discuss the allocation of uncertain expense provisions such as fuel and maintenance. Unlike some providers, we are not here to tell you what to do, but rather help and guide you. After all it is your money and your car.
Salary sacrifice provisions are based on:
- total number of kilometres the employee expects to travel each year;
- make and model of the vehicle;
- fuel type (i.e. unleaded, premium, LPG or diesel);
- the purchase price of the vehicle;
- the lease period;
- annual expected costs averaged over lease period for fuel, maintenance, tyres, insurance, registration, car washes and auto club membership (if applicable); and
- Fringe Benefits Tax (FBT) or GST for post tax contributions (PTC), depending on the preferred FBT model adopted under the salary package arrangement
Where actual expenses differ significantly from the budgeted salary sacrifice costs on an on-going basis throughout the lease period, the salary sacrifice budget can be adjusted. We will discuss all such required adjustments directly with you and if necessary, change your deductions accordingly.
It is important to note that the following costs do not constitute running expenses, and cannot be salary packaged. It is your responsibility to personally meet the following costs:
- Infringements and fines
- Car parking
- Drivers license fees
- Tolls & E-tag
- Capital improvements to the vehicle after a lease has commenced (e.g. mag wheels, premium sound system, etc)