A managing director reviewing next year’s remuneration budget has more options than ever. Salary remains important, but employers are increasingly looking at the overall package they offer. In several markets, the vehicle an employee drives has become a genuine part of that conversation.
Electric vehicles sit at the centre of it. For forward-looking leaders, this presents a real opportunity: a way to support their people while reflecting the values their organisation wants to be known for.
Why Benefits Have Become a Leadership Opportunity
Remuneration was once treated largely as a matter for payroll and human resources. Today, it is increasingly recognised as a strategic tool. In competitive labour markets, a thoughtful package can help an organisation stand out to candidates and show experienced employees that they are valued. Benefits give leaders a way to strengthen their offer that goes beyond base salary alone.
Benefits also tell a story. A well-designed programme communicates what an organisation cares about, often more powerfully than any policy statement. Practical support for lower-emission transport shows that a business’s commitment to sustainability extends to the everyday lives of its people.
Setting a Programme Up for Success
The most effective vehicle programmes begin with a clear understanding of the workforce they are designed to serve.
Leaders can start by considering cost and administration, so that the programme fits comfortably within the organisation’s broader remuneration approach. It is also worth thinking about how employees travel. Understanding who drives, and who has access to charging at home, helps shape a benefit that feels relevant and inclusive, and it can sit alongside other options for staff with different needs.
Charging access is steadily improving in many areas, and knowing what is available at home, at work or nearby helps employees make confident choices. Flexibility completes the picture. A programme that accommodates changes in role or employer gives staff greater confidence in taking it up.
How Leading Markets Are Approaching Vehicle Benefits
The treatment of vehicle benefits varies from country to country, which gives leaders of international organisations the chance to tailor their approach to each market with the help of local advice.
United States. Support for electric vehicles in the United States has evolved in recent years at both federal and state level. Leaders exploring an electric vehicle benefit can set their programme up well by confirming the current position before communicating it to staff.
Asia-Pacific. The region offers a dynamic picture. A number of governments have introduced measures to encourage electric vehicle adoption, and charging infrastructure continues to expand across many major cities. Organisations operating across the region can design benefits that reflect the progress in each market.
Australia. Australia has a well-established framework for vehicle benefits, including salary packaging and novated leasing. Eligible electric cars can receive preferential fringe benefits tax treatment under the Electric Car Discount, subject to eligibility requirements. The Australian Government has announced a transition from the current exemption to a permanent partial FBT discount for eligible electric cars, to be introduced in stages. Leaders should check current ATO and Treasury guidance when designing or communicating a programme.
How Electric Novated Leasing Works
For Australian employers, a common mechanism is a novated lease. This is a three-way arrangement between an employee, their employer and a finance provider. The employee chooses the vehicle that suits them, and the employer’s salary package establishes an agreement setting out terms such as the length of the lease. Lease payments and running costs, including registration, insurance and maintenance, can then be bundled into one regular payment made through the employee’s salary.
For leaders, making electric novated leasing available to employees can be a way to offer a valued benefit while also supporting lower-emission transport, since battery electric vehicles produce zero tailpipe emissions. The employer agrees to participate, and much of the arrangement is typically managed through the salary packager and finance provider.
The arrangement can also offer flexibility as careers progress. If a staff member moves to a new employer, the lease may be able to be transferred or re-novated to that employer, provided it is willing to participate. Because tax treatment can change when the employer changes, employees are well served by checking the implications beforehand. As outcomes depend on individual circumstances, encouraging employees to seek independent advice helps them make the choice that is right for them.
Leading the Conversation
The most successful programmes are built on clear communication. Employees appreciate accurate information about how a benefit works, what it involves for them and where to find independent guidance. A leader who explains why a benefit has been introduced, rather than simply announcing it, can give employees a clearer understanding of its purpose.
Benefits decisions reflect what an organisation values, and employees notice. By starting with a clear view of the workforce, the local rules and the practical opportunities available, leaders can create a programme that their people genuinely value, and one that reflects the kind of organisation they are building.
