Blog & Updates

The Future of Employee Benefits: HR Executive Roundtable

Author: Barry Scott / Published Date: 28 April 2014

Categories: Novated Leasing


In late March, Human Resources directors, managers and consultants congregated with Autopia at Kirribilli’s Royal Sydney Yacht Squadron to discuss the future of employee benefits - and the influence of changing demographics upon it.

~~~

novated-leases-autopia-employee-benefits-roundtable-march-2014-mainWorkplaces today are a combination of baby boomers, Generation X, Generation Y and  Generation Z.  In addressing this amalgamation, this roundtable discussion touched on the benefits that all employees seem to value, through to the benefits that resulted in the highest ROI for the organisation.

Some employee benefits were common practice across the range of industries present, while others were genuinely innovative. Interestingly, the highest-ranking benefits from both categories shared a common denominator.

Despite the diversity of the ‘needs and wants’ of different generations, they each valued one thing above all else. Family.

The roundtable united in the belief that benefits that are tailored to extend to the families of employees deliver the greatest amount of engagement, eventually leading to corporate profitability.  

Among those benefits were flexible work hours, and novated leasing or car salary packaging.  
To learn more on the range of benefits and how they compare, download the free white paper here.

As to the rationale behind why this might be, celebrated ‘leadership’ author, Simon Sinek, has some thoughts on the subject; he proposes that we aim to surround ourselves with people who ‘believe what we believe’, and when this happens, trust emerges (and he might just know what he’s talking about; his TED talk "How Great Leaders Inspire Action" is the third-most-viewed on TED.com).

Do you believe what he believes? How do your benefits measure up?

Watch Simon's talk here.

Download ‘Which Employee Benefits Work’ here.

Image Gallery

novated-leases-autopia-employee-benefits-roundtable-march-2014-2   novated-leases-autopia-employee-benefits-roundtable-march-2014-3

Autopia's Executive Roundtable Series
at the Royal Sydney Yacht Squadron March 25th
Autopians Maree Cowie, Jim Chittendon,
David Wakeley and Greg Parkes.
   

novated-leases-autopia-employee-benefits-roundtable-march-2014-4  novated-leases-autopia-employee-benefits-roundtable-march-2014-5

Jairus Ashworth from AON Hewitt
with Autopia's Greg Parkes
The topic, of poignant interest, provoking discussions post formalities
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AND WE HAVE A WINNER!

Author: Barry Scott / Published Date: 15 January 2014

AUTOPIA GIVES DRIVERS THE GREAT AUSTRALIAN ROAD TRIP


We are pleased to announce that the winner of Autopia’s ‘Great Australian Road Trip’ competition is Dennis Maloney.  Congratulations, Dennis!

Dennis, who referred a friend for an Autopia novated lease in our October-December competition – who consequently completed an obligation-free consultation and packaged their new car with Autopia – is the grand draw winner of $2,000 worth of vouchers of his choice from Britz Campervans, 4wd and Car Rentals, Motor One Vehicle Accessories, Coles Myer, Fuel, iTunes, Accor Hotels and Resorts and Adrenalin Experience.

Highway Road TripThe first twenty people, who referred and completed consults with Autopia, also receive a copy of the beautifully-presented Australian Geographic Highway One – The Ultimate Australian Road Trip book.

 

Have a great trip, Dennis – we can’t wait to hear all about it!

Autopia commits to providing Australian businesses and drivers with a service experience that is best in class.  For more information on novated leasing for Australian drivers, please click here.

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Autopia HQ - Published amongst World's Best

Author: Barry Scott / Published Date: 20 December 2013

Categories: Team Updates, Events, Just Love Cars™

When we moved office, we wanted our new environment to reflect the dedication we have to our work, and the love we have for cars.



We think we’ve done a pretty good job, and, as Autopia HQ has just been published in Chois Gallery’s ‘World’s Best Graphics’ - we’re not the only ones!

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Superannuation increase and its effect on Employees, and Salary Packaging Cars

Author: Barry Scott / Published Date: 9 July 2013

Categories: Novated Leasing, Consultancy, The Autopian

Extract from:
The Autopian | Winter 2013 Sign up here
Leading edge commentary on the vehicle benefits industry


The 2013 Federal Budget announced two changes that will indirectly influence salary packaging - the increase of the superannuation guarantee and the Medicare Levy. Here's how:

Impact of super increases on novated leases

The compulsory superannuation guarantee rate used to be 9%. On 1 July 2013, it increased to 9.25%. Should Australia have a Labor Government post September this year, the rate will gradually increase to a compulsory 12% by 1 July 2019. If we have a Liberal Government, the 12% rate will be reached two years later in 2021.

Year
Labour
Liberal

1 July 2012

9.00%

9.00%

1 July 2013

9.25%

9.25%

1 July 2014

9.50%

9.25%

1 July 2015

10.00%

9.25%

1 July 2016

10.50%

9.50%

1 July 2017

11.00%

10.00%

1 July 2018

11.50%

10.50%

1 July 2019

12.00%

11.00%

1 July 2020


11.50%

1 July 2021


12.00%


So what effect will this have on salary packaging?
Firstly, let’s reflect on what this means to employees in general.

Award employees: For employees covered under an Award, employers must bear the cost of the increased superannuation rate. This means that as superannuation contributions increase, so too does their total package. Taxable income, tax payable and disposable income remains unchanged.

‘Fixed remuneration’ employees: For employees paid a fixed remuneration package, superannuation balances will increase, and this will be funded out of their existing total package. The result of this will be a decrease in taxable income, tax payable and disposable income.

‘Base + super’ employees: For employees paid a base salary plus super, employers will need to choose whether the organisation, or the employee, funds the superannuation increase.
- Where the employer funds the increase, there is no impact on the employee’s taxable income, tax payable or disposable income.
- Where the employee funds the increase, again this will be afforded through the employee’s existing total package. The result of this will be a decrease in taxable income, tax payable and disposable income.   

Effect of Super Increase on Remuneration
 
Award employees
Fixed remuneration employees
Base+ Super employees

Who covers
the increase?


Employer


Employee

Employer
or employee


Superannuation balances

 

 

Increases

 


Increases

 


Increases


Taxable income


No change


Lower


Lower (employee bears cost)


No change (employer bears cost)


Tax payable


No change


Lower


Lower (employee bears cost)


No change (employer bears cost)


Disposable income


No change


Lower


Lower (employee bears cost)


No change (employer bears cost)


The new reality

A significant segment of the Australian work force is going to be funding the super increase out of their existing remuneration package. While a lower level of tax payable is always welcome, it's not usually associated with lower disposable income, as is the case now. Depending on the outcomes of your organisation’s annual remuneration review, employees may not immediately realise the negative impact on take home pay.

Inevitably though, they are set to face the challenge of making their diminished disposable income stretch further than it had to in the good old 9% days.

Sign up to The Autopian for more on the Medicare Levy Increase and its influence on novated leasing.

Doing more, with less
Employees will not be the only group faced with this challenge. HR departments will be under increasing pressure to alleviate the pain outlined above – and they’ll have to look for the means to improve their overall employment offering, without having the luxury of splashing the cash around.

The key is that employees’ disposable income is going to decrease, and so the desire to squeeze more value from a smaller pool of money will be paramount.

Novated leasing helps employees, and employers, do more with less.
It increases an employee’s after-tax benefit by increasing their tax savings.
It allows an employer to provide that increase without digging into their own pockets, and of course, it helps reduce your payroll tax at the same time...

Summary
While there is no direct effect on novated leasing (the increase in superannuation will not make it any more, or less, tax effective than before, and the rate of super contribution will be the same for an employee whether they package or not) the fact remains that there will be a decrease in take home pay for many employees.

Combine these new realities, with the recent FBT legislation changes, and vehicle salary packaging will become more attractive than ever before for employees. Employers too, will seek to maximise the opportunity to promote this benefit more aggressively than in previous years, especially now that FBT risk has significantly diminished.

Sign up to The Autopian for more on:
- FBT Risk is Dead
- Driver Savings
Continue to Increase
- Low KM Drivers Continue to Increase
- Medicare Levy Increase: Effect on Novated Leasing

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The Autopian | FBT Risk is Dead

Author: Barry Scott / Published Date: 26 June 2013

Categories: Novated Leasing, Consultancy, The Autopian

The Autopian

Leading edge commentary on the vehicle benefits industry l Winter 2013 
Sign up here

  • FBT Risk is Dead
    A landmark development that has the potential to benefit every employer, whether it’s currently offering novated leases or has resisted until now.
  • Low KM Drivers continue to increase
    Now that the incentive for higher kms (as well as penalties for not achieving them) have been largely eliminated, employees are happy to spend less discretionary time on the road and save on their running costs.
  • Tax savings continue to increase
    One might have predicted a reduction in savings this past year, as the tax rate for those driving >25,000kms pa moved from 14% to 17%. But that's not what happened...
  • Superannuation increases – effect on salary packaging cars
    Depending on your remuneration approach, the increase in the superannuation guarantee will affect your employees, and the relevance of novated leasing, in different ways…
  • Medicare Levy increase – effect on salary packaging cars
    As the Medicare Levy moves from 1.5% to 2%, how will this affect novated leasing?
  • Autopia appoint new CEO
    After 9 years in the driving seat, founder & Managing Director of Autopia, Jeffrey Morton, has appointed David Wakeley as Chief Executive Officer. [More here]
  •  Inside Autopia with: Geoff Payne
    Sales Manager Geoff Payne has been with Autopia for over five years, you could say he knows a thing or two about cars, and novated leasing…
  • Autopia driver survey results
    "The customer service was excellent. At all times George was clear and concise, explaining the technical aspects of the product I was purchasing. I also believe having the one point of contact throughout my lease period will be extremely beneficial." James Spurway, Challenger Financial Service Group

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