LeasePLUS Group announces game changing move in acquisition of Salary Options

LeasePLUS Group has solidified its position within the Salary Packaging industry by announcing the acquisition of the Melbourne based Salary Packaging company, Salary Options Pty Ltd.

Salary Options offers market leading products and services to its clients that are complimentary to the LeasePLUS Group businesses. The move will send shock waves into the current Salary Packaging industry which is dominated by two significant listed entities, Smartgroup Corporation Ltd and McMillan Shakespeare Limited.

LeasePLUS Group Managing Director, Mr Aytunc Tezay said “We’re thrilled to welcome all the staff and customers of Salary Options to the LeasePLUS Group family”.

This acquisition now makes one of Australia’s longest established Salary Packaging brands “LeasePLUS / SalaryPackagingPLUS” the third largest salary packager in Australia – the main difference being LeasePLUS Group are proudly 100% Australian owned and operated as opposed to being listed on the stock exchange. “This allows us to still be driven by our original customer service values rather than shareholder returns” said Mr Tezay.

This commitment to exceptional customer service was also recognised by Salary Options’ Managing Director, Mr. David Wenban in his formal announcement to the market, “We decided to sell to [LeasePLUS Group] because of their similar belief in customer service as the cornerstone of the relationship with…employees.”

The LeasePLUS Group’s dedication to offering Salary Packaging services to the Health and Aged Care sectors has long been clear. Their partnership with the Victorian Healthcare Association (VHA) began in 2016 and positioned them as the leading Salary Packaging provider for the Health and Aged Care sectors. This announcement further illustrates that servicing this sector is in the LeasePLUS Group’s DNA.

The LeasePLUS Group will immediately incorporate the Salary Options brand into its recognised SalaryPackagingPLUS business, combining the best of both brands into a single offering. “We will continue to look for other investment opportunities to expand our service offering as our market share grows” said Mr Tezay.

For further information on this announcement please email enquiries@leaseplusgroup.com.au.

 

SafeCode pushes its innovation agenda by acquiring Integrated Joinery Solutions (IJSPLUS).

IJS-press-release

Media Release – Melbourne, Australia:

SafeCode, a division of the Australian owned LeasePLUS Group of Companies has added to its stable of innovative and market leading businesses. Innovation is well and truly in the SafeCode DNA!

Integrated Joinery Solutions newly re-branded to IJSPLUS has introduced a suite of market leading software such as TopSolid Wood and has brought increased productivity to manufacturing in Australia and New Zealand making local manufacturing more competitive in the global market.

“The IJSPLUS team is top class, and is passionate about the same things we are— creating the most innovative joinery solutions in the industry with the customers needs in mind,” said Mr Norman Kurta, CEO of SafeCode.

“By including IJSPLUS into the SafeCode family we have put together the most established manufacturing software systems across this region. We can now bring improved solutions with greater capability to a larger audience and will strengthen our focus on making Australian manufacturing competitive again.”

Mr. Aytunc Tezay, Executive Chairman of the LeasePLUS Group of companies said, “IJSPLUS and TopSolid Software is the perfect partner for us. They have the most widely used solution in the market and are thought leaders in the joinery solutions space. We are united by a common culture based on a passion for innovating and maximizing business value,”

With this acquisition SafeCode, with IJSPLUS, IDACSPLUS, SafeCode Systems Solutions and PalleteCAD Australiasia now holds a prominent space in the manufacturing industry.

Mr Tezay went further to say that, “this move represents a pooling of expertise to greatly contribute toward expanding future product offerings for the customers in our region”.
For more information please contact David Thiessen, Company Secretary LeasePLUS Group of Companies on david.thiessen@leaseplus.com.au.

Salary Packaging Industry Update by the LeasePLUS Group

As you may be aware, there has been significant change in the Salary Packaging and Novated Lease industry in recent months, with larger publicly listed companies acquiring several of the small and medium sized providers whose clients in most cases have now been absorbed into the large groups.

Unfortunately, most acquisitions result in customer service and tailored solutions being sacrificed in favour of high margins and a relentless drive for shareholder profits and this is often seen with large corporate organisations who apply a one size fits all approach to what is in essence an extension of your individual organisation.

By contrast, the LeasePLUS Group remains privately owned and proudly 100% Australian operated with a “Less is More” approach to delivering simple but effective salary packaging and leasing services. We tailor individual solutions for each client to maximise the uptake of the Employee Benefits Program and increase your profile as an employer of choice.

LeasePLUS are pleased to advise that we have further strengthened our team with the addition of Christian Walkerden as our Commercial Director with a focus on salary packaging, novated leasing and improved service delivery. Christian brings over nine years’ experience with the Selectus Group where he performed various roles including National Manager – Sales, National Manager Business Development and General Manager.

Christian supports Leigh Penberthy, longstanding CEO of LeasePLUS and Chairman of the Australian Salary Packaging Association (ASPIA). LeasePLUS has a close involvement in the formation and ongoing importance of ASPIA, ensuring that we are active in the development and continuous improvement of the industry and have immediate access to key Federal Government and ATO officials to discuss and promote the core issues relating to the salary packaging industry.

The LeasePLUS Group has the capacity to deliver effective and consistent services and would welcome the opportunity to discuss our innovative solutions with you. We guarantee that we will be able to improve your uptake and your employee satisfaction by tailoring a solution for you that ticks all the boxes.

Please feel free to contact me directly to discuss what LeasePLUS can do for you or call Christian Walkerden on 0400 977 664, christian.walkerden@leaseplus.com.au.

Aytunc Tezay
Executive Chairman
LeasePLUS Group
p: 1300 13 13 16
e: aytunc.tezay@leaseplus.com.au
w: www.leaseplus.com.au

Download the .PDF document

What is the Fringe Benefit Tax (FBT)?

Fringe benefits tax (FBT) is a tax employers pay on certain benefits they provide to their employees, including their employees’ family or other associates. The benefit may be in addition to, or part of, their salary or wages package.

If you are a director of a company or trust, benefits you receive may be subject to FBT.

Fringe benefits tax is separate to income tax and is calculated on the taxable value of the fringe benefits provided.

The FBT year runs from 1 April to 31 March.

Follow the links below for more information on:

Source: https://www.ato.gov.au/General/Fringe-benefits-tax-(FBT)/ 

A new dawn for Novated Leasing and a brand new website

It’s not just a new website, nor is it the new series of video messages to clarify the facts and figures on Novated Leasing, it’s the notion of ‘Less is More’.

Last week LeasePLUS launched a new website to its customers. When rebuilding the new website the main goal was to make sure that any employees or employers who browse through it can obtain relevant information in the easiest possible way.

The new LeasePLUS website is created around its users’ needs, cutting down the superfluous content and giving importance to what really matters.

With this goal in mind we decided to give our website a complete makeover creating a fresh and modern look.

Less is More

The ‘Less is More’ philosophy is an approach to life that removes the unnecessary stress and worries of today’s world, leaving you with more time to fully live your life.

We use this approach to simplify the leasing process and remove the hassle of running and financing your car, leaving you with more time to do what you want.

Videos and digital media

Our first video is an introduction to the LeasePLUS philosophy ‘Less Is More’. It highlights our people-centric focus of removing the hassle and stress of running a vehicle or managing a fleet so that you have more time for yourself, either as an employee or an employer.

Subscribe to the LeasePLUS TV to view the upcoming digital content.

Does size matter in Salary Packaging?

3406bbd.jpgIn some situations ‘bigger’ is most certainly better.

Let’s start with pay-cheques – not many people want a smaller one of those.

And how about a single bed over a luxurious king? A shy smile from your child, or a beaming grin?

One decision where ‘bigger’ does not equate to ‘better’ is when it comes choosing your Salary Packaging provider.

Why? The success of a salary packaging program has little to do with size and everything to do with the technological infrastructure and the customer service ethos that underpins its delivery.

Most providers are comfortable to offer the same tried and tested approaches to service their clients regardless of quality – are these more likely to be the bigger or the smaller providers?

The real value is gained when salary packaging companies invest in new technologies that consistently improve the customer experience and lead to greater efficiency. Who is more likely to be proactive and embrace changes in technology, the big or the small end of town? I don’t think I have the answer but this is where you will need to do your homework.

The sign of a good salary packaging provider is that they have the capacity to address and respond with solutions to your employees’ queries in a timely manner and this has nothing to do with size but a lot to do with technological capability.

The exponential growth in the popularity of mobile platforms as a customer service tool should be leading many providers to improve their game in this sphere. This is something I’ll cover in further depth another time but for the purposes of this conversation remember that this technology is not out of reach of the small fellas.

It’s also important to remember your role as an employer in the salary packaging relationship.

Advocacy, as the principal advocate for your employees you need to demand information to be delivered in a timely and considerate fashion from your salary package provider. This isn’t something that should be left to the supplier as they tend to get lazy and the bigger they are the lazier they can get.

Communication, the key is to clearly communicate your service-level expectations to your provider – ideally at the outset – but doing this during any stage of the relationship is better than not doing it at all and the smaller they are the more likely they will listen and importantly respond.

If your salary packaging provider regardless of their size does not have the capability, resources or technology to respond to employee communications in what you deem a timely manner, you need to reconsider who you’re working with.

Hostage to your Salary Packaging software provider?

Salary Packaging Alternative Rout

Aytunc Tezay
Founder & Chairman – LeasePLUS Group of Companies

Recently a LinkedIn contact working in the Health industry approached me to ask what other Salary Packaging software options are available in the market.
If you currently use the same tired, inflexible and uninspiring software as many others in the market place, I recommend you read on!
For many years software providers have provided the same old and clunky salary packaging software to its clients and ignored the need to upgrade the look, feel and functionality of its product. My LinkedIn contact was told that their software was being refreshed, however it will come at a cost through significant higher licencing costs. The alternative is….. well… there isn’t an alternative because the current version which they have been using and putting up with for so many years is no longer going to be supported. Or the other alternative given to my LinkedIn contact was to have the same company providing the software, outsource the whole salary packaging administration function – how convenient!
This doesn’t seem very fair does it? Clients who have been patient and loyal over many years supporting software that hasn’t met expectations, are now being forced to pay more or get out!
If the story above relates to you, there is now an alternative – MySalPack.
The MySalPack software is a web based solution to facilitate the processing and reporting of salary packaging in the Corporate, Rebatable, Public Hospital and Not-for-Profit employment sectors. The functional aspects of the MySalPack software is to support the business by automating the processing of data efficiently and accurately while meeting all regulatory and compliance requirements.
One of the significant strengths of MySalPack is the MyKiosk customer portal that delivers live data and information to employees about their salary packaging account on both their desktops and mobile devices.
This is achieved by understanding the specific requirements of the various organisations within each industry sector. MySalPack has the capability of supporting both the outsourced as well as the in-house solutions, integrating robust security, audit and importantly flexible reporting capabilities.
Key features:

  • Ability to calculate Meal Entertainment and show the share of saving and admin as a separate line item.
  • To incorporate direct data feeds through file transfer protocol from Payroll to take into account specified factors for calculating an employee’s package.
  • Uploaded files are produced in the correct format for loading into Payroll and includes an adjustment file for any changes.
  • Automation of banking details can be loaded from Payroll to reduce manual entry, reducing error rates and improving productivity and compliance.
  • Detailed evidence register that updates automatically when a package is entered or copied from a previous year.
  • Efficient reporting tools including payroll reconciliation after each pay.
  • Easier access to updating of tax rates, benefit items, cost centre and facility lists, pay periods and banking.
  • On-line calculators for General, Novated Leasing, GST worksheets plus many more features, that can be emailed, saved and printed.
  • Form letters can be produced based on criteria, including the bulk send out of renewal letters each year.
  • Novated Leasing functionality with the ability to interface to external systems if required.

The team behind MySalPack is a Australian company called SafeCode who can provide you with further information and demonstrate the software.

website safecode.com.au
phone 1300 20 82 77

Federal Budget 2015 – Workers pushed into higher tax brackets

Hundreds of thousands of Australian workers will find themselves in higher tax brackets after [the] federal budget left tax brackets unchanged.

The failure to reset tax brackets will push the average full-time worker, earning $78,000 a year, into the second-highest tax bracket in 2015-16, with any earnings over $80,000 subject to a 37 per cent tax rate, 39 per cent including the Medicare levy. As a result, the average worker will be slugged an extra $1200 in tax a year, and the average income tax rate will rise from 21.7 per cent to 27.4 per cent over the next decade.

It’s not a pretty picture.

The picture is even less pretty for the thousands of individuals who will pushed into the top tax bracket, which kicks in at $180,000… “This makes the top marginal rate 49 per cent, giving a 10 per cent hike in the marginal tax rate, so beyond $180,000 the employee loses almost half of every extra dollar earned…” notes HLB Mann Judd Sydney taxation services partner Peter Bembrick.

For families at the lower end of the pay scale, increased earnings can also mean the unwelcome end of government benefits, such as family tax benefits.

“It is important that people know their effective tax rate and not just their marginal tax rate to determine if how hard they are working is worthwhile, especially those in the lower brackets,” says the managing director of  BFG Financial Services, Suzanne Haddan.

Prescott Securities senior economist and financial adviser Alan Hutchinson says there are a number of options for taxpayers who are in danger of jumping into a higher tax bracket.

Cutting back on the hours worked is one option, although possibly not the best if there are mortgages and school fees to pay, he says. Another strategy is salary sacrificing into superannuation.

“Salary sacrificing is the main strategy available to people wanting to avoid bracket creep, and it is the one that works,” says Hutchinson.

ipacSecurities head of technical services Colin Lewis says salary-packaging motor vehicles and laptops used for work-related purposes may be an option for some employees as a way of reducing assessable income.

Employees of public benevolent institutions such as public hospitals or not-for-profit organisations are still able to salary-package almost anything including living expenses, education costs, loan and mortgage repayments, rent, credit card payments and bills, he says.

AFR Contributor

*Source Bina Brown – Australian Financial Review

See the full report here.

MyMortgagePlus opens its doors

MyMortgagePlus has begun operations this month and is an integral part of the LeasePLUS Groups plans to deliver value adding financial service products to its clients.

MyMortgagePlus offers a fee free service to undergo a health check on your current mortgage or look at lending possibilities for those looking to get into the property market.

We cover areas such as;

  • Pre-approvals for new home buyers/upsize/downsize
  • Investment lending
  • Bridging finance
  • Salary cap benefits – mortgage repayments can be included
  • First home buyers with little deposit

We can also look at debt reduction strategies to maximize the repayments you are making thus reducing the life of the loan and potentially saving thousands.

My Mortgage PLUS have access to 30+ lenders thus allowing competitive rates with fixed rates as low as 4.6%.

Additionally My Mortgage PLUS is able to order property profile report on just about any property – which can be very handy for those looking to gain an understanding of their local area and can even produce sale price history to provide you with an advantage when looking at property purchases.

With such a competitive market it is ideal to review your home loan every 3 years as an absolute minimum.

I would encourage all my contacts who have a home loan or considering the possibility of a new home or investment property to contact our consultants at www.mymortgageplus.com.au or to call 1300 73 77 88.

AUSTRALIAN MOTOR INDUSTRY SUMMARY – JULY 2014

Top ten makes

Toyota retains the top sales position in the July monthly market with 16,486 vehicle sales, ahead of Holden with 8,990 and Hyundai third with 8,048. Toyota, with a market share of 18.1%, holds market leadership in year to date terms. Holden’s July result sees it in second position with a market share of 10.1%, with Mazda’s market share of 9.2% placing it third. Hyundai, with a market share of 8.9%, is in fourth position. Ford is in fifth position with share of 7.5%, ahead of Nissan with 5.9% market share in year to date terms.

Report for the month of
Jul-14
Year to date
Jul-14
Year to date
Jul-13
Month
Jul-14
Standings Marque Volume Share Volume Share Volume Share
1 Toyota 117,591 18.10% 123,543 18.60% 16,486 18.30%
2 Holden 65,763 10.10% 61,684 9.30% 8,990 10.00%
3 Mazda 59,958 9.20% 60,812 9.20% 8,048 9.00%
4 Hyundai 57,948 8.90% 55,988 8.40% 8,351 9.30%
5 Ford 48,452 7.50% 51,237 7.70% 6,210 6.90%
6 Nissan 38,606 5.90% 49,139 7.40% 5,451 6.10%
7 Mitsubishi 37,718 5.80% 42,984 6.50% 5,042 5.60%
8 Volkswagen 32,562 5.00% 31,359 4.70% 3,991 4.40%
9 Subaru 23,161 3.60% 23,815 3.60% 3,121 3.50%
10 Honda 18,151 2.80% 26,175 3.90% 2,708 3.00%

Source: VFACTS Report July 2014