Federal Budget 2026 – what it means for small to medium businesses
1:30 minute read
On Tuesday, 12 May 2026, the Federal Government handed down their budget – big talking points were tax cuts for workers, fuel measures, housing reforms and small business relief.
Some ease for SMEs
The government’s tax refresh helps SMEs ride bumps and keep moving, including:
- Making the $20k instant asset write off permanent from 1 July 2026
- locking in a two year loss carry back from 1 July 2026
- Sharpening tax incentives for venture capital and research and development
- Launching a $250 worker offset from 1 July 2027
- Introducing startup loss refunds from 1 July 2028.
Tax cuts
Good news! – the government announced another tax cut with $250 a year set to kick in from 1 July 2027.
That’s on top of already-announced tax cuts to earnings of between $18,201 and $45,000 – from 16% to 15% from 1 July 2026, and then to 14% from 1 July 2027.
Nice little win, hey?
For most Oly customers though, it’s expected to have little impact on your novated lease setup – so you can keep enjoying the perks you’ve already got rolling.
Electric vehicles
As covered in this article, a few proposed changes to the Electric Vehicle (EV) discount were covered off.
The good news though is that the EV Discount remains switched on; until 31 March 2027, it’s business as usual.
From 1 April 2027, things shift a bit. EVs under $75,000 stay fully FBT discounted while EVs between $75,000 and $91,387 will move to a 25% FBT discount.
Then from 1 April 2029, it all levels out – every eligible EV up to $91,387 gets a 25% FBT discount. Simple, consistent, and here to stay.
Already cruising around in an EV via novated lease? You’re sweet. Existing arrangements will stay in place for the life of their lease. The government is reviewing specific circumstances where a lease may be impacted, but nothing has been announced yet. We’ll update you as soon as we know.
Oly’s here to help
Got questions on the above? Get in touch here.
Ready to drive?
You don’t need to work for a big company to get big benefits, but to be eligible for an Oly novated lease you do need to be:
- Employed full-time, part-time or self-employed
- Earning a set salary (AKA not unemployed, retired, or a ride share driver)
- Looking for a car for personal use
Fill out this form to kick things off, then check your inbox for a link to create your Oly login to apply online (hint: check your spam/junk folder).
Things you need to know
This general information doesn’t take your personal circumstances into account. Please consider whether this information is right for you before making a decision and seek professional independent tax and financial advice. Conditions and fees apply, along with credit assessment criteria for lease products. The availability of benefits is subject to your employer’s approval. Oly may pay and/or receive commissions in connection with its services.
Oly One Mastercard
This material is general information only. It does not take into account your personal objectives, financial situation or needs. You should therefore consider the appropriateness of the information in light of your own objectives, financial situation or needs before deciding whether the card (Oly One) is right for you. We recommend you consider the Product Disclosure Statement (PDS) and the Target Market Determination (TMD) before making any decision regarding the new card (Oly One).
Oly One Card is a prepaid, reloadable Mastercard and is issued by EML Payment Solutions Limited ABN 30 131 436 532 AFSL 404131. Oly Pty Ltd ABN 69 674 252 629 is an Authorised Representative of EML Payment Solutions Limited Australian Financial Services Authorised Representative number 1313775 and participates in the promotion and distribution of the Card. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.
Related articles
Novated leasing
Oly busts the myths about novated leasing for businesses
Think novated leasing is complicated or only for big companies? Here’s a quick rundown busting the common myths and showing how businesses of any size can offer it as an easy, valuable employee perk.
3:15 minute read time
Novated leasing
Why novated leases are an essential perk for small businesses?
Whether you’re a small business or an employee, Oly breaks down the types of vehicle finance available – and why novated leasing comes up trumps.
7:30 minute read time
Novated leasing
Novated lease payments for easy budgeting?
How novated lease payments could make budgeting easier, your bill pile smaller – and maybe even your taxes lighter
4:30 minute read time