Salary packaging is when an employer agrees to provide benefits to an employee in addition to their cash salary.
When you “novate” an agreement (or part of it) you transfer certain rights and obligations under the contract to another person.
The practice of an employee 'novating' a contract for a product or service to their employer is a method commonly used to enable the employer to pay for those products or services on the employee’s behalf.
The benefit of the employer to paying is that it can then be deducted from the employees salary, pre-tax (i.e. salary packaged).
The range of items that can be salary packaged will depend on your employer’s policy.
Read more on salary packaging an EV subscription.