Fleet News

Salary sacrifice survey 'encouraging' says Tusker

Salary sacrifice for cars provider Tusker says the results of an ACFO survey are encouraging.

The survey showed 17% of respondents are actively researching salary sacrifice schemes and a further 36% are thinking about looking at salary sacrifice car schemes.

The results are not surprising, says Tusker, as the initiative usually comes from the HR department.

Despite growing popularity for salary sacrifice schemes amongst many businesses due to the tax advantages they offer, ACFO’s research found 21.7% of respondents said they had “no interest” in the schemes, with another 24.2% had “never looked” at the option.

However, Tusker managing director David Hosking said the results were in line with its own findings as any enquiries regarding a salary sacrifice car scheme typically came from the HR rather than the fleet department.

“We find that in the overwhelming majority of salary sacrifice schemes that we implement, the impetus comes from the HR or benefits manager within the business," he said.

"This is because salary sacrifice cars are very much seen as an additional flexible benefit that is usually open to all employees.

“This contrasts with the traditional company car scheme which is usually only available for those who qualify for a car because of their job description or they receive one as a perk of their job.

“That’s why we don’t find the ACFO research out of the ordinary in any way – if anything, it’s hugely encouraging that such a high percentage of fleet managers are actively looking at it."

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Comments

  • ashleigh@transauto.co.za - 13/08/2010 15:09

    Car Allowance Schemes are a rolling snowball and will ultimately spell the death of professional fleet management as you know it. Effectively, it makes each employee his own fleet manager - a job that most people are ill-equiped for resulting in increased costs for them as they purchase based on cost and emotion.. The scheme siuts HR as it absolves them from having to manage company vehicles so its implementation is also driven by them

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