How a novated lease could put cash back into your pocket
A new car and big tax savings? Here's how a novated lease can help you achieve both.
Sponsored by Oly
What is a novated lease?
Imagine financing a new car that bundles all your driving expenses whilst having the opportunity to save on tax. With a novated lease there is no need to worry about an upfront deposit. Instead, you can use salary sacrificing to make payments with your pre-tax salary.
Plus you could skip (or save) GST on cars up to $69,674. For cars with a drive-away price of over $69,674, GST applies only to anything over that amount.
That's a novated lease, and it has become a popular choice for many Australians looking to drive their dream car. There are currently around 350,000 novated leases in Australia^.
Between fuel, registration, insurance, servicing, tyres and other bills, keeping your car on the road can be a lot to manage separately. A novated lease makes life easier by bundling the car payment itself with all these expenses into one automatic payment taken directly from your pay.
Unlike car loans, a novated lease takes part of this payment from your pre-tax salary and reduces your taxable income, which could see you having to pay less tax and saving thousands of dollars every year.
And for those considering an electric vehicle, the Government’s Electric Vehicle (EV) Discount initiative allows your entire payment for an eligible EV to be taken from your salary before tax – meaning even bigger potential tax savings.
Who can get a novated lease?
A novated lease was once considered a perk only offered by large organisations, but with Oly on the scene, Oly is changing that landscape by making novated leasing accessible to more Australians.
Now, employees of small-to-medium businesses can also take advantage of novated leases to drive their salaries further. Streamlining the entire process, Oly handles the complex tasks so both you and your employer can enjoy the perks without the hassle.
What happens at the end of the lease?
A typical novated lease is offered for anything from one to five years, at the end of which you can choose to extend your lease, return the car back to the leasing company or make a final ‘balloon’ payment and buy the car outright.
For most people, being able to choose a new car at the end of the lease term is one of the most appealing aspects of a novated lease.
With technology advancing faster than ever before – particularly for electric vehicles – you’ll always be able to stay behind the wheel of the latest model, and the car best suited to your changing needs.
Your key to novated leasing
Oly’s goal is simple – to make novated leasing a finance option that’s easy to understand and accessible to millions more Aussies. Because Aussies deserve car financing that is straightforward and hassle-free.
Plus, your regular lease payment covers not only your car but all your driving expenses too – like rego, insurance, servicing, tyres. And thanks to Oly’s handy app you can access your account anywhere anytime, with total control at your fingertips – nifty!
Oly does the heavy lifting with cutting-edge technology to streamline the whole process. No upfront deposits to employers. A few clicks and you’re set – no paperwork, no fuss.
Backed by one of Australia’s largest and most trusted novated leasing providers McMillan Shakespeare Group (MMS), Oly is your key to novated leasing.
Ready to jump behind the wheel of your dream car AND score big potential tax savings in the process? Use Oly’s quick and easy novated lease calculators to see how much you could save or get in touch with Oly to learn more.
Interested to learn more about novated leasing? Click here to meet Oly.
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