Services

Administration for employers

Statewide Novated Leasing The Salary Sacrifice Specialist (Statewide) administers the salary sacrifice program for Employers and manages Employees accounts. The provision of advice to Employees is through Statewide Salary Sacrifice & Financial Planning. Statewide's administration service principally provides bill paying, payroll and salary sacrifice reporting for Employers who wish to provide their Employees with innovative and flexible remuneration.

Salary sacrifice administration is complex and costly to administer. To ensure staff have the opportunity to maximise the benefits from salary sacrifice Employers outsource the administration which is more cost effective for all concerned.

Statewide maintain the substantiation records and provide the FBT details to Employers as well as arrange payment of the packaged items. Employers are required to track and allocate individual fringe benefits under the ATO guidelines, and report their value on Employees' PAYG summaries (previously known as group certificates).

Novated Leases

What is a novated lease?

A three way agreement between the employee, employer and financier.
Obligations under the lease are transferred from the employee to the employer through a Deed of Novation. These employer obligations cease upon termination of employment.
Payroll deductions are made in pre-tax dollars which contribute toward your lease payments and running expenses. As these are pretax payments the employee's taxable income is lowered.
GST incurred in vehicle running expenses may be recouped through the employer.

Benefits?

Reduction in Pay As You Go (PAYG) tax
GST savings on purchase price of car and running expenses
Fuel Card convenience
Budgeted expenses
Lease terms from 12 to 60 months

A novated lease transaction receives concessional treatment under salary sacrifice. Care is needed prior to entering a novated lease arrangement that the FBT implications and lease terms are understood. The benefit of experienced Advisors is that they can explain in detail, all of the issues and potential issues with a novated lease. A novated lease can be a very cost-effective way to own and operate a motor vehicle.

Apart from a reduction in PAYG tax, there are also GST savings that can be made. GST savings are achieved in the purchase price of the motor vehicle and on running expenses.

Subject to an Employee's marginal tax rate and use of FBT exemption cap limit the Employee Contribution Method (ECM) may negate any potential FBT (Fringe Benefits Tax) liability. If an Employee contribution is required it may eliminate the FBT liability with these funds being used toward the total cost of the package.

A Caltex fuel card must be utilised. The card is required to assist in the management of kilometres.

A Caltex fuel card is provided through Statewide.

All operating expenses form part of the novated lease package. Statewide's financiers offer a two month deferred payment arrangement which enables time to build funds in an Employee's trust account. If an alternate financier is proposed, then the Employee will be required to make the first two payments upfront when the lease is funded.

Car Pricing Service - something for free!

Our goal for clients is to ensure that when a client packages a novated lease the car purchase price is as cheap as it can be. Whether the client actual uses our price or merely uses the price to negotiate a better deal themselves is irrelevant. It is simply the best price that can be negotiated regardless. Having said that we have a dealer network that readily and competitively prices vehicles for our clients.

Insurance

Unlike most providers we aim to mitigate a clients risk with appropriate insurance strategies. Through our agency arrangement with Suncorp we are able to provide competitive motor vehicle insurance products.

Financial Planning

We pride ourselves as being independent of major insurance and investment companies. Through our related company, Statewide Salary Sacrifice & Financial Planning we are able to provide comprehensive financial planning advice in managed funds, pre-retirement planning, wealth creation or risk management. Statewide Salary Sacrifice & Financial Planning's license holder, AFG Financial Planning Pty Ltd and its associated finance broking arm AFG is a major participant in the Australian mortgage industry. All initial consultations are without cost.