In February, Monash Health, Victoria’s largest public health service, awarded Smartgroup subsidiary Smartsalary a significant contract for salary packaging and novated leasing services. The contract follows a competitive tender process and will run for an initial three years, with the option to extend to five years.
The contract will see Smartsalary administer services to approximately 25,000 Monash Health employees from 1 April 2025. The agreement highlights Smartgroup’s strong position in the healthcare sector, delivering tailored salary packaging and novated leasing solutions to large, complex organisations.
“This was a highly competitive process and we are privileged to have been selected as the provider of these important services to Monash Health. This appointment reflects our compelling proposition for healthcare employers and their employees, and our longstanding commitment to Victoria.”
Scott Wharton, Smartgroup Chief Executive Officer
For fleet buyers and procurement managers in the public health sector, this appointment reinforces the trend of large employers outsourcing salary packaging and novated leasing administration to specialist providers with proven systems and scale. With around 25,000 employees eligible for these services, the partnership is expected to help Monash Health attract and retain talent by offering financial and lifestyle benefits through novated leasing.
Smartgroup has advised investors that while the contract is strategically important, it does not expect a meaningful earnings uplift in the first half of 2025. However, the longer-term value of working with Victoria’s largest health employer will likely strengthen Smartgroup’s position in future tenders.
For fleet managers, this announcement is another example of how novated leasing remains a key offering in salary packaging arrangements, particularly in sectors with large, diverse workforces.
