Home topics finance finance-cash-flow Cashflow Managing Cashflow Salary packaging options to save you money Nigel Malcolm September 17, 2009 As the credit crunch really starts to bite, increases in salary are few and far between and bo uses seem to be a thing of the past, so employees need to make the best use of the dollars they get in their pay packets. Salary packaging with a novated lease is one option that delivers considerable benefits to both employees and employers . Employers face a predicament in the current economic climate. No matter how much they might want to give their valued employees a pay rise, often the money just isn’t there. Therefore, employees are looking for a way to stretch their salaries further and employers are looking towards more efficient work practices to compensate their employees without any additional outlay. There is a solution that works for both – a novated lease. Salary packaging with a novated lease continues to be one of the most powerful remuneration benefits an employer can offer in these difficult times and the beauty of it is that it rewards employees without any financial outlay from the business. A novated lease allows the employee the opportunity to purchase a car using their pre-tax salary to pay for vehicle repayments and ongoing running and maintenance costs. With a novated lease arrangement the employer makes the monthly instalments directly to the financier out of the employee’s pre-tax salary. This means that not only is the employee’s