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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!

What is Salary Packaging?

Salary Packaging allows you to finance your vehicle at a low and competitive rate as well as package your running costs into one easy payment every payday all while reducing your taxable income.

You have the option to source your vehicle in a variety of ways:

  • Your choice of a dealership
  • Privately
  • Auction
  • Lease a car you already own.

Whilst Salary Packaging does attract fringe benefits tax, by paying some costs yourself, you can reduce your FBT liability.

An Example

The Car packaging differences* Novated Lease Straight Lease
Car price $47,504 $47,504
Terms 5 years 5 years
Balloon Payment $12,955 $12,955
Lease Repayment $322.35 / fortnight $322.35 / fortnight
Running cost spent $293.84 / fortnight $293.84 / fortnight
Pre tax Deduction $250.77 NIL
Post Tax deduction $365.42 NIL
Estimated Benefit of leasing per years $2542.80 $0
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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, E/N: 88886 or email: leasing@policebank.com.au to discuss leasing options, obtain a quote and lodge an application. We can also provide you with an insurance quote.
  2. Submit an application with a fast approval.
  3. Choose the vehicle type that you wish to purchase.
  4. We will forward documents to you for you and your employer to sign.
  5. Settlement can occur after these documents are returned to Police Bank.

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.

Only general advice can be provided. Police Bank recommends you seek independent, legal, financial and taxation advice on salary packaging.

Leasing

Schedule of Fees and Charges (PDF)

Financial Services Guide (PDF)

Bridges Financial Planning