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Salary Packaging / Leasing

Police Bank

Through salary packaging (or salary sacrifice) you may reduce your income tax, lower your car running costs and increase the total value of your pay-packet.

Don’t think that only high income earners can benefit from salary packaging. You might be surprised how affordable it can be. You can save money on vehicle financing and running costs by using pre-tax income to pay for vehicle expenses. It may even cost you less than what you are currently spending!

Packaged Car Lease

Instead of buying your next car outright, you may be able to lease the car and pay all your running costs through your salary package.

Whilst salary packaging does attract fringe benefits tax (FBT), the further you drive each year the less FBT you have to pay. Also, by paying some costs yourself, you can reduce your FBT liability.

An Example

Let’s consider John and Jill, each on a salary package of $45,000 p.a. They each buy a $30,000 car, John through a personal loan and Jill through a packaged lease. Each drives about 30,000 km p.a.

After paying for all car expenses, Jill’s packaged car lease gives her nearly $3,000 more in after-tax, take-home pay.

The car packaging difference* John Not packaged $ Jill packaged
$
Gross salary package 45,000 45,000
Total lease and running costs – 12,570
Employee contribution + 3,300
FBT Nil Nil
Taxable salary 45,000 35,730
Income tax on salary – 10,347 – 7,427
After-tax salary 34,653 28,303
After-tax car cost – 12,570 – 3,300
Net take-home pay
22,083
25,003
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Independent Salary Packaging Advice

We can also arrange an appointment with a Bridges Financial Planner who can provide independent personal financial advice taking into account issues like superannuation, tax minimisation and income returns.

What you can expect

Bridges Responsibilities:

  • Assist you in understanding your options.
  • Optimise your Package and determine savings you will achieve by Packaging.
  • Provide a Statement of Advice, (a fee is payable for this service) confirming whether it is in your best interests financially.

Consultation Requirements
Should you wish to see the Bridges planner, please bring to the meeting the following:

  • Assets – a list indicating your assets and approximate value
  • Liabilities – statements of mortgage/s, personal loans, credit cards, etc
  • Payslips
  • Drivers licence
  • Details of motor vehicle (if known) eg. make, model, registration number
  • Leasing quote
  • Estimate of kilometres

Steps for Salary Packaging and Motor Leasing

  1. Contact our Leasing Hotline on (02) 9561 2913, or fill out the enquiry form above to discuss leasing options, obtain a quote and lodge an application. We can also provide you with an insurance quote.
  2. Choose the vehicle type that you wish to purchase and obtain a vehicle invoice.
  3. Obtain running costs from Salary Package Administrator.
  4. We will forward documents to you for signing. You will then need to forward these documents to your employer. Settlement can then occur after these documents are returned to Police Bank by your employer.

Who can apply for a loan?

You can apply for a loan individually or jointly with one other person or multiple person/s. To apply you need to:

  • be at least 18 years old.
  • have a regular income.
  • be a permanent Australian resident.
  • be able to make your repayments.
  • want to borrow more than $5,000.

Terms & Conditions

You can apply for a loan individually or jointly with one other person or multiple person/s. To apply you need to:

  • be at least 18 years old.
  • have a regular income.
  • be a permanent Australian resident.
  • be able to make your repayments.
  • want to borrow more than $5,000.

Leasing

Schedule of Fees and Charges (PDF)

Financial Services Guide (PDF)