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avtek(Newbie)Newbie
9 Mar 2023

I am a little confused with salary packaging options from the ATO site. All the examples for a car refer to a novated lease arrangement.


From what I understand, if I buy a laptop computer through work, I can pay it back with my pre-tax dollars for a regular amount off my payslip. The laptop then becomes my property.


I am looking at buying an EV which will be used mostly for work travel to clients etc. A novated lease isn't really feasible as there are no running or maintenance costs, and the finance interest rates cancel out any tax savings.


Can an employer buy me a motor vehicle with cash, I pay them back with pre-tax dollars, and then I become owner of the car once I've paid them back what they are out of pocket?



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Most helpful reply

AriATO(Community Support)Community Support
12 Mar 2023

Hi @avtek


Your employer can do this for you if it's something they offer. This type of arrangement is a fringe benefit. Your employer will need to pay fringe benefit tax depending on the benefit. If its an EV then it can be exempt from FBT. You'll need to talk further with your employer to see if they'd be willing to do this for you.

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Most helpful reply

AriATO(Community Support)Community Support
12 Mar 2023

Hi @avtek


Your employer can do this for you if it's something they offer. This type of arrangement is a fringe benefit. Your employer will need to pay fringe benefit tax depending on the benefit. If its an EV then it can be exempt from FBT. You'll need to talk further with your employer to see if they'd be willing to do this for you.

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Salary Sacrifice for newbie | ATO Community