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I know that in Australia you have to be reimbursed for all of that kind of stuff.

Another issue which needs to be taken into account, in Aus anyway, is the safety of the vehicles your employees drive, as they are covered by your business' insurance and liability from the time they get in the car to come to work, until when they get out at home.

If their cars are junk (likely) then you are much better off to supply it as part of their package.