You could save stacks with a novated lease from Oly

What’s the difference between a novated lease and a car loan?

With a regular car loan, you’d be making repayments with your post-tax salary. With a novated lease, your payment uses some of your pre-tax salary, which could lower your taxable income.

Then there’s the fact that all your running costs are bundled into one regular, easy, automatic payment.

PLUS Oly helps you find your new car, takes care of most of the admin and makes it easy to switch your car for a new one once your lease is up.

You won’t find a car loan that can do any of that!

Why should I take out a novated lease instead of buying a car?

Not only could a Oly novated lease save you money, it removes a lot of the hassle that comes with owning a car.

Once you’ve decided on your car (yep, Oly can help with that too!), Oly will set up a simple annual budget that bundles up all those pesky running costs – that’s petrol, servicing, rego, insurance and the car itself, obviously – into one regular payment.

Then, once you get your car, that payment gets taken directly out of your pay using a combination of your pre- and post-tax salary. If you’re leasing an eligible electric car, the payment is all taken before tax.

Let’s break all those benefits down:

• Buying power
  Since Oly buys so many cars from dealerships across the country, you could get access to some pretty amazing deals.
• Tax savings
  Some (or all) of your payments are made with pre-tax dollars, so your taxable income is reduced. That means you could pay less tax! Even better: you could skip the upfront GST on your new ride too.
• Less hassle
  Oly sorts out all the administrative stuff, including finding your new car, dealing with the money people, and sorting insurance. That means less stress and more time cruising with the windows down.
• Better budgeting
  That one regular payment includes your car AND all your running costs. That means no more of those terrifying registration or insurance renewal bills.
• Flexibility
  With Oly, you can choose the car you want to drive, whether it’s new, used or the car you’ve already got.

The government’s Electric Car Discount policy. How does that work with a novated lease?

To try to encourage more drivers to pick up an electric car, the government has dished out an exemption to the fringe benefits tax for low-emission cars valued under $91,387 (the luxury car tax threshold as of July 1, 2024).

That means when you use Oly to get into an EV, your novated lease payments can be taken entirely from your pre-tax salary, which could mean having to pay less tax.

Add an exemption to the 5% import tax for most EVs, and the fact that there is no upfront GST cost to you when using a novated lease on an EV, and you could get a shiny new electric Tesla 3 for the same cost per week as a petrol Mazda CX-5.

^ Things you need to know

^ Displayed price is only available through a novated lease administered by Oly. Estimated costs have been determined based on the following assumptions:

1) The example assumes that the EV is an eligible zero or low emissions vehicle, 2) The lease is an Oly fully maintained lease, 3) A 5-year lease term, 4) A residual value of 28.13% of the vehicle purchase price payable at the end of term, 5) Gross annual salary of $90,000, 6) An annual distance travelled of 15,000kms, 7) The value of the EV at the first retail sale was below the luxury car tax threshold of $91,387 for fuel efficient vehicles,
8) The EV is first held and used on or after 1 July 2022, and 9) Both vehicles are purchased in NSW. Additionally, the estimated annual operating costs includes estimates of fuel/electricity, maintenance, four replacement tyres, registration, CTP and comprehensive insurance, roadside assistance, and fleet management fee have been calculated on a GST exclusive basis, on the assumption that your employer will be entitled to GST input tax credits and that they will pass on the benefit to you. GST is payable on your ECM contributions. State Stamp Duty rates apply. PAYG tax rates effective 1 July 2024 have been used. The indicative price quoted for the novated lease is based on vehicle quotations received on 1 June 2024 and does not include any optional extras. Any optional extras that you choose will affect the cost of the novated lease and residual value. The novated lease offer is based on the assumption outlined in the comparison table and is an indicative cost approximation of the selected vehicle and model stated and the amounts may change at the time the novated lease quotation is completed and finalised. Your individual circumstances have not been taken into account as this will affect the overall weekly cost amount and the benefits of a novated lease. Savings shown are indicative and reflect estimated tax savings over the full-term of the lease. The total amount saved is a comparison between the costs of a novated lease with an EV and the costs of a novated lease with a petrol car. Actual savings will depend on your personal circumstances and may vary depending on the vehicle model and price. Oly recommends that you seek independent financial and taxation advice.

From 1 April 2025, a plug-in hybrid electric vehicle will not be considered a zero or low emissions vehicle under the FBT legislation. However, you can continue to apply the exemption if both the following requirements are met:

1. Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue providing private use of the vehicle on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding. To qualify for the EV discount, plug-in hybrid electric vehicles must be delivered by midnight on 31 March 2025. Due to high demand and stock limitations there may be some vehicles that do not meet the delivery deadline for the EV Discount. Customers are advised to confirm delivery timelines before proceeding with their order.