Can someone tell me if it is possible to salary sacrifice a car lease in NSW?

I would like hubby to consider a new job, same pay. less hours but NO car :( The less hours is the part we like! I was wondering if it's possible to lease a car for his work and if it effects his tax etc? He works in transport industry, but in an office.

As long as the employer is agreeable, a car lease can certainly be salary sacrificed. A common solution is via novated lease, which is a tripartite agreement between employee, employer and a lessor. While the employee remains with the employer, the employer takes responsibility for the lease payments. Once the employee leaves the employer, the novation lapses and the employee becomes directly responsible for the lease. In simple terms, the car goes with the employee when they leave.

While the novation is in place, all running expenses of the vehicle (including the lease payments) can be salary sacrificed, but on the flip side, the employee will also pay Fringe Benefits Tax on the vehicle.

Care needs to be taken when entering these arrangements as the FBT can significantly reduce or negate any tax benefit achieved from salary sacrifice. Make sure you do your numbers beforehand.

... and just a response to the answer below, once a vehicle is structured into your salary, there is no other tax break or deduction available outside sacrificed costs, regardless of business or personal use.

Yes you can salary sacrifice a car if your employer allows it but you will not be able to claim it for tax as he will only be driving to & from work. Any other trips for work can be claimed.

So if he uses the car one day (all day) a week for work he can claim 1/7th of the car as a business expense.