Novated lease payments for easy budgeting

When it comes to your car, the bills can stack up faster than old Holden’s in a wrecker’s yard… fuel, rego, insurance, servicing, tyres – yikes.  But with a novated lease, these costs can be rolled into one neat regular payment that comes out of your pay automatically. This means easier budgeting and (because some of that payment can be pulled from your before-tax salary) maybe even some serious tax savings too.

In this article, Oly steers you through how novated lease payments work, and why they might be a more savvy way to cover your car costs.

Key takeaways

What are novated lease payments?

In simple terms, novated lease payments are regular deductions from your salary that cover your car, and most of its running costs too. That’s things like fuel, rego, insurance, servicing, and tyres (even charging if you have an EV). This all gets bundled into one neat regular payment, which your employer deducts from a mix of your before-tax and after-tax salary (which may help maximise tax incentives). This means less bills to worry about – and maybe less tax too.

What’s a balloon payment?

A balloon payment (AKA residual value) is a lump sum outlined at the start of your lease that’s calculated using tax rules and gets applied to the amount you finance. How much you pay depends on the length of your lease, and the estimated value of the car when the lease wraps up.

Some people choose to pay the balloon payment at the end of their lease and own the car outright. Others prefer to roll it into a new lease and hit refresh.

The great thing about an Oly novated lease, is you’re in full control every step – you’ll know the amount of your balloon payment right from the start, and you’re also given support and guidance by the Oly team well before your lease wraps up, so you can make the right decision at the time.

Novated lease payment calculator

Want to know what your novated lease payments could look like? Oly’s created a handy calculator, perfect for not only figuring out the car you could end up getting into, but how much your regular payments might be – and more importantly, how much you could save with a novated lease.

4 easy steps to Oly’s lease payment calculator:

1. Choose a year, make & model for your car

2. Enter roughly how many kilometres you plan to drive each year

3. Choose your ideal lease length (1 to 5 years)

4. Plop in your annual salary before tax

Oly will then estimate your weekly, monthly or yearly cost (and how much you could save in tax with a novated lease – sweet!).

Oly makes budgeting even easier with One Mastercard

Meet Oly’s One Mastercard – the easy way to pay for eligible costs like fuel, tyres, oil filters, insurance, rego, even the odd car wash. Your One Mastercard is linked to your novated lease account, so you’re never out of pocket paying for expenses, and you never have to waste time submitting claims to be reimbursed.

Just add it to your phone’s Wallet and tap to pay in-store or shop online – it works like a regular pre-paid card.

And because part of these payments come from your before-tax salary, those everyday driving costs? They could turn into sweet tax savings.

How does the Oly app tie in?

With the Oly app, you’ll always know if you have enough in your account to pay that fuel or rego bill. Available to all Oly’s novated lease customers, it’s super simple to track your spending, lodge claims for when you don’t use the One Mastercard, or change-up your running cost budget. You can do it all in seconds with the Oly app – from the servo or the sofa!

✔ Upload receipts and submit claims

✔ Track how you’re tracking with your budget

✔ Make changes to your running cost budget

✔ Search and filter past transactions and claims

✔ Update personal details and bank account info

With desktop and laptop versions too, the Oly app puts you in control of your lease 24/7.

Who’s Oly?

Oly is the key to legendary novated leasing – bringing the big corporate perk to employees of small and medium businesses too.

Oly can help find your new car, sort the finance and insurance – even work out the payment details with your employer.

And if you’re keen to get a great deal on your car, Oly is backed by one of Australia’s largest and most trusted novated leasing providers, MMS, to bring you bigger buying power through a nation-wide network of trusted dealers.

Get a quote with Oly today.

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).

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