Salary sacrifice a car in Queensland
Pay for the car from your salary, explained first
The arrangement most people know as a novated lease: what it may include, how the deductions are set out, and whether your employer supports it.
Looking to pay for a car through your salary? In practice that usually means a novated lease — a new, used or eligible existing car packaged through your employer's payroll, with finance and running costs budgeted into one regular deduction. Whether it suits you depends on your employer, the vehicle and your circumstances, so the estimate has to be yours. Use the FAA Sal Pac quote portal to see how a package could look, or book a call with the team on 1300 322 777.
"Salary sacrifice a car", "salary package a car" and "novated lease" describe the same arrangement from three angles, and the terminology is worth settling before anything else. A novated lease is an agreement between four parties — you, your employer, a finance company and an administrator such as FAA Sal Pac. You lease a new, used or existing car, and for the duration of the lease your employer takes responsibility for the car's expenses, meeting them from deductions taken through payroll. That is the whole mechanism. It applies to cars specifically — it is not the same as packaging meals, rent or other living expenses, and this page stays with the vehicle.
Because the deductions can be drawn from pre-tax income, and because GST on eligible expenses may be handled differently, the arrangement may produce a tax or GST benefit for some people. Whether it does, and how much, depends on your salary, your employer's arrangements, the vehicle and the way the package is set up. None of that is knowable from a web page; it is exactly what a personalised estimate is for.
Why it matters here
A package is built from categories, and a personalised quote lists them separately rather than as one number. Depending on your arrangement, a novated lease may cover the finance (the lease repayments themselves) and a set of running-cost budgets — FAA's own published list includes fuel, servicing and maintenance, replacement tyres, registration, comprehensive insurance and roadside assistance, among others. Budgets are estimates: FAA states plainly that quoted running expenses are an estimate only, and that you can adjust the amount being diverted as your actual costs become clear. Inclusions vary by employer and arrangement, so treat any claim that a package covers everything with suspicion — the honest version is "the categories your arrangement supports, at the budgets you agree". Some items are never packaged, such as parking, tolls, fines and licences.
The payroll side is best understood as a labelled layout rather than a figure. A personalised quote from FAA Sal Pac separates the finance component, each running-cost budget, the administration fees, the portion drawn from pre-tax salary, any portion drawn from post-tax salary where the arrangement requires it, and the residual amount that falls due at the end of the term — an ATO-specified amount that depends on the length of the lease. From those lines you can see the estimated effect on take-home pay. Any numerical example belongs in that approved quote, dated and tied to a specific vehicle, term and salary; this page deliberately shows the structure and not a sample figure.
Your employer shapes every one of those lines. Salary packaging runs through your workplace's payroll and arrangements, so both your eligibility and the assumptions behind an estimate follow from it — and some arrangements carry extra setup steps, such as establishing a salary packaging account, before a lease can be established. FAA Sal Pac can confirm how your workplace fits before you build a quote around it. Whatever the answer, the same advice applies to everyone: get independent financial advice before entering into or amending an arrangement of this kind.
Common local challenges
Getting lost in the jargon before even starting
"Salary packaging", "salary sacrifice" and "novated lease" are used interchangeably in ads and payroll paperwork, and nobody defines them.
People assume these are three different products and give up comparing before they learn one arrangement usually underlies all three phrases.
This page defines the arrangement once, in plain English — four parties, one packaged deduction — and the team is there for every question the page does not answer.
Assuming the whole package comes out before tax
The phrase "salary sacrifice" suggests every dollar is pre-tax, and marketing rarely corrects it.
Depending on the vehicle, the arrangement and its fringe benefits tax treatment, a package may be drawn as a combination of pre-tax and post-tax deductions — budgeting as if it were all pre-tax overstates the effect on take-home pay.
FAA Sal Pac's personalised quote shows the actual split for your circumstances, in FAA's approved wording, so you see what is pre-tax and what is not before you decide.
Not knowing what actually gets included
Inclusions vary by employer and arrangement — registration, insurance, servicing, tyres, fuel or charging may be in or out.
Comparing a fully-bundled package against a finance-only quote is comparing different products; assumptions about inclusions drive the budget.
FAA Sal Pac spells out what a given arrangement may include before you proceed, and the personalised quote shows the composition rather than a single opaque number.
Believing salary packaging always saves money
Marketing across the industry leads with best-case outcomes.
Any potential benefit depends on your personal circumstances, employer arrangements and vehicle — a package that suits one colleague may do little for another, and the total cost over the term, including the residual, is the real measure.
FAA Sal Pac's estimates are personalised and framed as estimates, and FAA Sal Pac recommends independent financial advice before you commit.
Not knowing what your own employer has in place
Most salary packaging content online is written generically, but the arrangements that decide your eligibility sit between your employer and an administrator — and some carry extra setup steps.
A quote built on the wrong employer assumptions rests on the wrong basis from the first line.
FAA Sal Pac can confirm how your workplace fits, and what setup it may involve, before you build a quote around it — if you are not sure, that is a reason to ask, not a reason to stop.
Choose your pathway
Buying a new car
Estimate how a new vehicle may work under a novated lease.
Run the numbers before the dealership visit — the estimate shows how finance and running costs may bundle into one regular deduction.
Estimate a New CarBuying used, or packaging the car you own
Check whether a used or existing vehicle may be suitable.
Used and eligible existing vehicles may be considered depending on eligibility, finance and arrangement requirements — the used-car page explains what FAA checks first.
Used & Existing CarsConsidering an electric car
Explore electric vehicle salary packaging options where eligible.
Eligible electric cars may attract specific FBT treatment, and the rules are changing on announced dates — see the EV page before you decide.
Explore EV OptionsRequest a personalised quote
Tell FAA Sal Pac about your employer and the car you have in mind.
A quote enquiry produces an eligibility review and a line-by-line cost explanation — the quote page sets out what to expect.
Request a QuoteUnsure where to start
Book a call and ask FAA Sal Pac to guide you.
A short booked call before any quote suits first-timers — plain-English answers, and you leave knowing which pathway fits.
Book a CallWho you are dealing with
FAA Sal Pac is a registered business name of Financial Advisers Australia Pty Ltd (ABN 69 006 908 176). The FAA Novated Lease Quote Portal lets you estimate potential savings, compare vehicle options, download a personalised quote based on your circumstances and sign up online if you decide to proceed. The team works from its Maroochydore head office — Suite 3-7, Level 5, Tower 2, 55 Plaza Parade — Monday to Friday 8:30am–5:00pm, on 1300 322 777 and salpac@faa.net.au.
Talk to the team
FAA Sal Pac
Frequently asked questions
Is salary sacrificing a car the same as a novated lease?
Car salary packaging is commonly arranged through a novated lease. The structure may vary depending on your employer and administrator, but the four-party novated lease — employee, employer, finance company, administrator — is the usual mechanism behind "salary sacrificing a car".
Is everything paid before tax?
Not necessarily. Depending on the vehicle, the arrangement and its fringe benefits tax treatment, a package may be drawn as a combination of pre-tax and post-tax deductions. Your personalised quote sets out the actual treatment for your circumstances in FAA's approved wording.
Can I package a used car?
A used vehicle may be considered, depending on eligibility, finance and arrangement requirements, and the finance company may apply vehicle age limits. A car you already own may also be considered through a sale and leaseback arrangement, subject to assessment. Ask for an eligibility check before you commit to the car.
Will I save money?
That depends on your individual quote and the total costs over the term, including fees and the residual amount at the end. FAA Sal Pac does not promise a saving; the personalised estimate is there so you can judge it for your own circumstances, and independent financial advice is recommended before you proceed.
Does my employer change how this works?
Yes. Salary packaging runs through your employer's payroll and arrangements, so both your eligibility and the numbers behind an estimate depend on your workplace. Run a quote to see the estimate, and FAA Sal Pac can confirm how your employer's arrangements affect it.
What is included in the regular deduction?
The categories your arrangement supports, at the budgets you agree — typically the finance component plus running-cost budgets such as registration, insurance, servicing, tyres and fuel or charging, together with administration fees. Budgets are estimates you can adjust as actual costs become clear; items such as parking, tolls and fines are not packaged.
Ready to see how car salary packaging may work for you? Use the FAA Sal Pac Quote Portal to estimate potential outcomes and compare vehicle options — and if you are not sure what the estimate means, book a call and the team on 1300 322 777 can walk through the deductions and the next steps. Submitting an enquiry is not a finance application and does not commit you to anything.
Important information: Information on this page is general in nature and does not take into account your personal objectives, financial situation or needs. Potential tax, GST or cost outcomes depend on your individual circumstances, your employer arrangements and vehicle eligibility. You should consider obtaining independent financial, legal or tax advice before entering into a novated lease arrangement.