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!

Can I end my novated lease early?

A novated lease is based around a fixed length of time. So, if you decide to end the lease early, your payout might be higher than the market value of the car (and could include fees and charges from the money people).

When you set up your lease, it’s a great idea to structure it over a period that reflects how long you’ll want to keep the car to avoid any of those early cancellation fees.

What if I need to get new tyres?

For tyre replacements, you can head straight to any of Oly’s favourite suppliers, including:

• Beaurepaires
• Bridgestone
• Bob Jane T-Marts
• Goodyear
• JAX Tyres
• K-Mart Tyre & Auto
• TyrePower

Or, if you prefer, you can go with any other tyre supplier of your choice!

Oly has special pricing agreements with each of the tyre suppliers listed. Get in touch with Oly to make sure you have access to these VIP prices.

How do I get my car serviced?

Servicing costs are all included as part of an Oly novated lease. In most cases, you’ll be able to get two services a year, depending on time or mileage.

It’s easy too. When you drop your car off at your local service centre, let them know Oly looks after your car and ask them to contact Oly on 1300 328 186 before they kick-off any work.

Oly will stay in touch with them to make sure:

• All the work meets the car maker’s standards
• All the work makes sense for your car’s age and condition
• You’re not being ripped off on labour or parts

Oly will organise payment directly from your account and your mechanic will contact you to collect your car.

Note: any additional services you choose to get between your car’s scheduled services aren’t included in your Oly payment. If you’re looking to get some maintenance work done outside of your standard budget, call Oly on 1300 328 186 to talk through your options.

What happens if I go on unpaid leave during my lease term?

Before you go on unpaid leave, get in touch to let Oly know (the earlier the better).

When you take unpaid leave, your boss will stop paying funds into your novated lease account, so there might not be enough cash in your account to cover your regular payments. Oly can discuss some options to help avoid any unexpected bills.

Where can I find all my account details?

You can access all your info through the Oly app.

Once you’re logged in, you can check your transactions, change your details… anything!

If you don't have the app, go to oly.com.au/my-account, and follow the prompts to download.

Can I use my fuel card with other cars?

No, your fuel card is tied to your leased car. If you do accidently use the card with the wrong car, let us know as soon as you can to avoid your card being cancelled.

Does novated leasing affect any other salary sacrifice benefits I might have (or want to get in the future)?

You can take out a novated lease no matter what other existing salary packaging arrangements or opportunities you have.

What's a ‘residual payment’ and how does it work?

All novated leases require you to pay a residual (aka ‘balloon’) amount when the lease ends. The amount you have to pay is calculated using tax rules and gets applied to the amount that you finance. The amount depends on how long your lease term was, and the estimated value of the car when the lease ends. Get in touch and Oly can help calculate the residual amount you’ll need to pay.

I haven’t signed yet - can my estimate be adjusted?

Yep! You can adjust any of the info in your estimate before you sign your final contract.

How quickly will I get approved?

Most of the time, Oly will approve applications within four hours of getting all the required info and documents. That’s about as long as it takes to make a celebratory ‘new car!’ cake

What info should I pull together before I apply with Oly?

Oly will help you out with your application after you get in touch, but it might be helpful to know:

• The make and model of your current car if you have one
• An idea of the car you’d like to get
• A rough idea of your current car’s running costs (again, if you have one)
• A guess at how many kms you think you’ll travel each year
• Your annual income and employer info

What’s not included in my novated lease?

A novated lease doesn’t include tolls, speeding fines (or other traffic infringements), upgrades to existing accessories or accessories fitted to the car after you get it.

How long is the lease term?

An Oly novated lease can be setup for any period from one to five years. Use the novated lease calculator to see how the term of your lease might impact your lease payments.

Can I just package the running costs without leasing a car?

Unfortunately, running costs can only be salary sacrificed through a novated lease arrangement.

I’ve got my estimate! What do I do now?

Have a good read of the numbers and the fine print in the estimate to make sure you’re happy (seek your own financial and tax advice). If you have questions get in touch!

Confirm you’re ready for your Oly novated lease offer to be sent out to you.

Once you’ve read the offer, sign and send it back to Oly.

Read and sign your lease documentation.

Confirm delivery or pickup of your car.

Hop in your new car and pick your first driving playlist!

What if I end up spending more or less on running costs than I estimated when I applied?

If you’re spending MORE than budgeted…

It happens! You might find yourself having to drive a little more and spending more on petrol than you thought. Get in touch to chat about making changes to your contribution amounts so you know you’ve always got enough funds to cover your car’s running costs.

If you’re spending LESS than budgeted…

You might have an excess of funds in your Oly account! Wooo! Get in touch to have this cash returned to you (through your payroll) whenever you like. If you find this happening often, you can also adjust your regular payments

Are there any cars I can’t lease?

Unfortunately, you can’t lease a car that’s designed to carry more than one tonne (that’s the weight of a hippo or a small elephant), or to carry nine passengers or more.

If you’ve got any worries, contact Oly to discuss your dream car.

What happens at the end of my lease?

Oly will get in touch with you before your contract ends to chat about your options. These might include:

• Getting a new car! Take out a new lease, upgrade to the latest hot ride, and keep enjoying the convenience and potential tax savings. All you have to do is trade in your current vehicle and pay any amount owing.
• Refinancing. Extend your lease by refinancing the residual amount (the balloon payment you owe at the end of your lease) and keep making handy regular payments on the car you’ve already got. Conditions might apply if the car is more than seven years old at the end of the lease, or if it’s valued below $5,000.
• Keeping the car. Buy your ride outright by paying the residual amount and keep the good times going (conditions may apply).

Get in touch with Oly for more info or to discuss your specific circumstances.

What happens if I change jobs during the lease term?

There are plenty of reasons you might change your job (expectedly or unexpectedly) before the end of your novated lease. If this happens, you can choose to:

• Pay the remaining lease payments and buy the car outright by paying the residual value.
• Keep making the payments for the lease and running costs yourself with your post-tax dollars.
• Get your new boss to agree to transfer the lease to your new job.

Whichever one you choose, or if you’re having trouble figuring out the best option, get in touch.

Can Oly take over an existing car lease or finance?

Oly might be able to take over the management of the novated lease of the car you’ve got now if it’s under an existing novated lease or transition you to a novated lease if your car is financed through a personal loan or dealer finance. Get in touch to find out, and to learn what conditions might apply depending on your personal situation.

When will the first payment be taken from my salary?

The start of your payments will depend on when your employer can make changes to your pay. In some cases, it can take up to two weeks for your contributions to start, but Oly will email you a guide (called a ‘benefit confirmation schedule’) that outlines all the amounts and your start date, so you’ll know exactly what to expect and when.

Does it matter how much I drive?

Whether you do less than 10,000kms a year or more than 50,000kms, a novated lease from Oly could save you money.

Punch your info into the novated lease calculator to see how the amount of kilometres you drive a year might affect your payments.

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.

When can I start my lease?

You can start at any time of the year! (Some people believe you have to wait until the beginning of the fringe benefits tax year in April to start a lease, but that’s not true.)

What about petrol-based plug-in hybrids (PHEVs)? Since they’re not fully electric, do the same government discounts still apply?

Yep! As long as you sign up before 1 April 2025, your PHEV will still get all the same government discounts (like the fringe benefits tax exemption, the luxury car tax exemption and no upfront GST cost to you) for the length of the lease.

Can I take out a novated lease on an electric vehicle (EV)?

Absolutely! There’s actually no better way to get an EV than with a novated lease. Eligible electric cars under the government’s EV Discount don’t attract fringe benefits tax, so your entire novated lease payment can be taken from your salary before tax (which could mean you pay less tax!).

Not only that, when you use a novated lease to get an EV, there’s no upfront GST cost to you.

Plus, you get all the other benefits from taking out a novated lease, like having all your car-related expenses bundled into one regular payment.

Can I buy a charger and package it into my novated lease?

If it’s included in the cost of the car, then the charger will be bundled neatly into your novated lease payment.

Unfortunately, the current rules don’t allow third-party chargers bought separately to be bundled into a novated lease (but obviously Oly will let you know if that changes…).

Can I package the cost of my electricity with my electric car?

Absolutely! You just need to install a smart meter that can measure exactly how much electricity your EV is using or set up a dedicated in-home charger with a metering function.

Anything I need to know about dates and eligibility for the EV Discount?

The government’s EV Discount applies to all eligible electric cars, provided they were leased after 1 July 2022 and cost less than the luxury car threshold of $91,387 (as of July 1, 2024).

If you’re looking to pick up a petrol-based plug-in hybrid (PHEVs), the discount only applies on leases taken out before 1 April 2025.

I’ve heard about 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.

How do the novated lease savings for an EV compare to standard (petrol) cars?

Ordinarily, taking out a novated lease means you might end up having to pay fringe benefits tax (FBT). When you get a petrol or diesel car, Oly reduces that risk by taking some of your lease payments from your pre-tax salary and the rest after tax.

EVs under $91,387 (as of July 1, 2024) are exempt from the FBT, so Oly can take your whole payment from your pre-tax salary which could reduce your taxable income and put an even bigger smile on your face.

Can I claim the cost of using a public charger on my novated lease?

A lot of public chargers, like those at shopping centres, are free to use. For the ones that require a payment, just keep the receipts and claim them through your Oly account.

Will taking out a novated lease for an electric car impact any of my government payments or my HECS?

Oly can't give out financial or taxation advice. While eligible electric cars obtained through a novated lease are exempt from fringe benefits tax (FBT), your employer is still required to disclose the reportable fringe benefit amount (RFBA) as if the electric car was not FBT-exempt on your employee payment summary. The RFBA could impact your financial situation. Oly recommends you seek independent financial and taxation advice on what impact this could have to your personal circumstances, including how it could affect any means-tested government benefits or HECS.

Do I need a ‘preferred repairer’?

If you don’t have a favourite repairer (who does…?), no problem. Oly has an Aussie-wide network of authorised repairers and can take care of the whole process from when you make the claim to making sure the repairs are up to scratch.

Why do I have to give Oly my driving record?

Oly reckons safe drivers shouldn't have to fork out higher premiums to make up for the dodgier ones.

To make this dream a reality, Oly’s insurer underwrites each policy individually and works out your premium based only on your driving record (not everyone else’s…), so you don't pay extra for bad apples/drivers.

By not disclosing your driving record, past claims or accidents when asked, a claim you make in the future might only be partially paid or not paid at all.

The above information is general in nature and does not take into account your personal objectives, needs and circumstances. You should consider the appropriateness of the information having regard to your personal circumstances and consider the Product Disclosure Statement and Target Market Determination available on the Insurance Disclosures page and obtain independent financial advice before making any decision in relation to an insurance product.

What does ‘agreed value’ and ‘market value’ mean?

Agreed value is a fixed amount you and the insurer agree to insure your car for, and the most that will be paid if you ever make a claim. You can change this amount whenever you renew your policy.

Market value is what your insurer thinks it would cost to replace your car with one of the same make, model, age and condition as your car when it was lost or damaged (not including warranty, stamp duty or transfer costs).

For an idea of what your car is worth, check out redbook.com.au.

The above information is general in nature and does not take into account your personal objectives, needs and circumstances. You should consider the appropriateness of the information having regard to your personal circumstances and consider the Product Disclosure Statement and Target Market Determination available on the Insurance Disclosures page and obtain independent financial advice before making any decision in relation to an insurance product.

Do I have to arrange insurance through Oly?

Nope! If you’re happy with your current car insurance provider or just want to find your own, Oly will simply add their annual premium to your lease budget.

The above information is factual and is not intended to convey any opinion or recommendation about any financial product. You should consider the appropriateness of the information having regard to your personal circumstances and consider the Product Disclosure Statement and Target Market Determination available on the Insurance Disclosures page and obtain independent financial advice before making any decision in relation to an insurance product

What does the ‘employee contribution method' mean?

It’s a little complicated, but the employee contribution method (ECM) is a calculation made by Oly to help reduce your chances of paying fringe benefits tax (FBT) on your novated lease at the end of the FBT year (31 March). By taking your payments from both your pre- and after-tax salary, Oly may be able to help you save money on your car without increasing the chances of a FBT bill.

You can check the ECM portion of your payments in your quote or figure out the amount you may have to pay when you sign up with Oly by using the online calculator.

Want to avoid the ECM and FBT? Taking out a novated lease on an eligible electric car under the luxury car tax threshold means you don’t have to worry about either of them!

What does ‘fringe benefits tax’ mean?

Fringe benefits tax (FBT) is a tax that gets applied to any benefits you might get from your employer that aren’t your salary or wages. An Oly novated lease is one of those benefits, so it might mean you end up having to pay FBT.

Oly uses the employee contribution method (ECM), which takes some of your lease payments from your after-tax salary to help reduce your chances of paying fringe benefits tax (FBT) on your novated lease at the end of the FBT year (31 March).

Thanks to the government’s EV Discount policy, eligible electric cars and petrol-based plug-in hybrids* (PHEVs) are exempt from FBT, so your novated lease payments can all be taken from your pre-tax salary.

*PHEVs are only FBT exempt until 1 April 2025

Does it matter how much I earn?

You don’t have to be a big earner to get the benefits of a novated lease.

For example, someone earning $90k could save more than $2,572^ each year thanks to the novated leasing tax benefits. Plus, with a single regular payment covering petrol, insurance, servicing, rego and all other running costs, you could be better off compared to other ways of getting into a car.

Go for an electric vehicle (EV) and the savings could be even bigger. With the tax exemptions from the government’s EV Discount initiative, you could end up getting an EV for the same cost per week as a petrol car. That’s like getting a Tesla 3 for the same cost per week as a Mazda CX-5!

_{^ The estimated potential tax benefit is exclusive of GST and is based on the assumption that you would have paid for the lease from your post-tax salary (as opposed to salary sacrificing those payments from your pre-tax salary or a combination of your pre and post-tax salary). Payment includes: your car payments, registration, tyres, insurance and scheduled servicing. The estimated annual benefit will vary depending upon salary, employment circumstances, selected benefits and applicable tax treatment. The example assumes that you earn $90,000 a year, a 5 year lease term, an annual distance travelled of 15,000 kms, a vehicle valued at $34,000 and a 28.13% residual value. The estimated annual operating costs includes estimates of fuel/charging costs, maintenance, tyres, registration, comprehensive insurance and fees have been calculated on a GST exclusive basis on the assumption that your employer will be entitled to GST input tax credits and will pass on the benefit to you, reducing the impact of the GST. GST is payable on your ECM contributions. State Stamp Duty rates apply. PAYG tax rates effective 1 July 2024 have been used. Individual circumstances may vary. Contact Oly to discuss what you can package given your individual circumstances.}

I don’t work full-time, is that a problem?

All good! Novated leases can be just as great for casual and part-time workers.

Use the online calculator to see how much a novated lease could end up saving you and speak to your boss about whether they’ll help you get set up.

Note: If you earn less than the tax-free threshold of $18,200, you may not have to pay income tax, and incomes under $26,000 don’t attract the Medicare levy. If you earn less than these amounts, the amount you could save with a novated lease might be affected. Oly suggests you speak to an accountant or financial expert before you sign up for a novated lease.

What does it cost?

In return for taking care of your novated lease, Oly charges a fee that’s outlined in your agreement. The fee is paid from your pre-tax salary, doesn’t contribute towards any capping limits, and doesn’t attract FBT.

Okay, come on, what’s the catch…?

No catch! Using salary sacrifice to set up a novated lease is a very popular way to get a new car, while also helping you get more out of your pay.

Relax knowing Oly is up-to-date with ATO rulings and all developments in fringe benefits tax legislation.