With the opportunity to save on tax, a novated lease is a popular alternative to taking out a car loan or forking out a wad of cash upfront. Instead, a novated lease involves 'salary sacrificing', where your employer takes a regular payment straight out of your pay packet which could reduce your taxable income.
And, if you’re considering an electric car you could benefit from additional savings, thanks to government incentives such as the EV Discount.
When you take out a novated lease for an eligible electric car (i.e. EVs valued under $91,387 as of July 1, 2024, first held and used after July 1, 2022), you can pay for your electric car lease entirely with your pre-tax salary.
Oly is backed by one of Australia's trusted novated leasing providers McMillan Shakespeare Group (MMS), meaning you can benefit from their bigger buying power and more than 35 years of experience to get a great deal on your next car.
Oly unlocks the benefits of salary sacrificing for Australians who work for small and medium businesses (SMBs), not just employees of the corporate giants. Because Australians deserve to get behind the wheel of their dream car.
People often have a few questions when it comes to how they make the most of novated leasing, says Oly's Tyniec.
Q: Why is novated leasing becoming more popular in Australia?
When you consider the cost-of-living pressures we are all facing, Australians are looking for more financially savvy ways to get into the vehicles they aspire to drive. That's where novated leasing is a game changer.
One of the key advantages of novated leasing is that it’s a form of salary sacrificing, which offers the convenience of one simple payment each pay cycle to cover both your car and your driving expenses. It automatically comes straight out of your pay packet, so there's no monthly paperwork to contend with.
It's not just about streamlining paperwork and simplifying your budgeting. Novated leasing also helps you skip the upfront GST on expenses like petrol or charging, registration, insurance, tyres and servicing. That's on top of the upfront GST savings on the purchase price of a car.
And with government incentives such as the EV Discount, we have seen novated leasing surge in popularity. It makes the move to an electric car even more cost-effective and appealing for both employees and employers.
All of these combined makes novated leasing the smart way for Australians to drive away in a brand-new (or used) car.
Q: How has novated leasing become more accessible in Australia?
Historically, novated leasing was typically available to employees of large corporations and government, due to complex administration. Today, technology-driven platforms like Oly have unlocked access for employees of small and medium businesses (SMBs), which represent most of the Australian workforce.
Our innovations at Oly are paving the way in offering access to the financial and lifestyle benefits of novated leasing to more Australians.
Innovations like Oly’s Business Hub give employers online access to everything related to novated leasing – from reporting to managing direct debits through Oly Autopay. It’s a simple solution that helps small businesses focus on what matters most – growing their business.
With a simple three-step online sign-up process and support from day one, Oly makes it easy for small business owners to offer their employees big-company perks.
Everyone deserves access to the benefits of novated leasing. Whether you are a part of a team of thousands or a team of one, Oly is making these opportunities available to businesses of all sizes.
2025 Tesla Model 3
Long Range Sedan
Price (MRLP*)
$64,900
Weekly Payments
Est tax saving
2025 BYD Seal
Premium Sedan 4dr
Price (MRLP*)
$52,990
Weekly Payments
Est tax saving
2025 Polestar 2
534 Long range
Price (MRLP*)
$71,400
Weekly Payments
Est tax saving
2025 GWM Ora
ES11 Extended Range
Price (MRLP*)
$40,990
Weekly Payments
Est tax saving
2024 MG ZS EV
AZS1 Long Range
Price (MRLP*)
$46,990
Weekly Payments
Est tax saving
2025 Volvo EX30
Twin Motor Performance
Price (MRLP*)
$71,290
Weekly Payments
Est tax saving
2025 Hyundai IONIQ 6
CE.V3 DYNAMIQ Sedan
Price (MRLP*)
$78,500
Weekly Payments
Est tax saving
2024 CUPRA Born
K1 Hatchback 5dr
Price (MRLP*)
$59,990
Weekly Payments
Est tax saving
2025 Kia Sorento
MQ4 PE PHEV
Price (MRLP*)
$84,660
Weekly Payments
Est tax saving
Q: How do customers benefit from Oly's close partnerships with car manufacturers?
Oly has joined forces with some of the most loved car manufacturers in Australia to further our mission to make novated leasing accessible to more Australians than ever.
For example, we've partnered with MG Motor Australia to offer a streamlined MG novated leasing process nationwide, making it easy to access a great deal on MG's innovative range of vehicles, including its popular EVs, with an Oly novated lease.
Oly proudly partners with a wide network of trusted car dealers including popular brands such as BYD and Hyundai. So, whether you're searching for cutting-edge electric vehicles or reliable everyday drivers, Oly’s partnerships help ensure you’re always in the loop and one step closer to getting behind the wheel of your dream car.
Q: How popular are EVs for novated leasing?
You've likely seen more and more EVs on the road, and likely financed through a novated lease arrangement.
EVs are leading the charge in the rise of novated leasing, driven by substantial cost savings like the government's FBT exemption and significantly lower running costs. With an increasing focus on sustainability across Australia, it's no surprise that more people are turning to novated leases as a smart, cost-effective solution for their electric vehicle needs.
An Oly novated lease makes EVs more accessible for everyday Australians by skipping the upfront costs and allowing eligible payments to come from 100% before tax salary.
This could mean scoring a BYD Sealion 7 for almost the same cost per week as a Mazda CX-5 if you take advantage of the EV Discount with a novated lease.
For example, if you earn $90,000 a year and plan to drive 15,000km a year over a five-year lease term, a novated lease could get you into an electric BYD Sealion 7 worth $58,503 for as low as $211 per week^. Meanwhile, a petrol Mazda CX-5 worth $39,750 would require similar payments, as low as $228 per week*.
Q: Do you have customer testimonials sharing their positive experiences with novated leases?
"Fantastic experience with the team at Oly. I had a strict time schedule that they had to operate within and they came together to make it happen. Great service, highly recommend." - Jarryd
"I recently completed a novated lease with Amanda at Oly, and I couldn't be happier with the experience. Amanda was incredibly helpful and professional throughout the entire process, guiding me every step of the way and making everything straightforward and stress-free. Her expertise and friendly approach made choosing and securing my car a breeze. I highly recommend Amanda and the Oly team to anyone considering a novated lease – they truly make the process simple." - David
"I’ve had an excellent experience organising my Novated Lease through Oly. Huge thank you to Nitesh, from Oly, who was there every step of the way. Nitesh has been friendly, very responsive and prompt if I had a question, always explained things very clearly (even when I needed to ask twice). Big thank you Nitesh! I’ve dealt with other Novated Lease companies before and this has been by far my best experience. Definitely worth the 5-star rating and then some.” - Zoe
Oly loves novated leases and believes they should be available to everyone, whether you work for a tiny business or a medium one.
Get started today and discover how an Oly novated lease can work for you.
Disclaimer
This general information doesn’t take your personal circumstances into account. 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 and loan products. The availability of benefits is subject to your organisation’s approval. Oly may pay and/or receive commissions in connection with its services.
*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 car 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) The interest rate used to calculate the weekly lease payment (in the case of a novated lease) and the weekly repayment (in the case of a car loan) is the same, 6) Gross annual salary of $90,000, 7) An annual distance travelled of 15,000kms, 8) The value of the car at the first retail sale was below the luxury car tax threshold of $91,387 for fuel efficient vehicles, 9) The car is first held and used on or after 1 July 2022, and 10) The vehicle is purchased in NSW.
^Savings shown are indicative and reflect estimated tax savings over the full-term of the lease. The total amount saved is a comparison between a novated lease with a petrol vehicle and a novated lease with an eligible EV based on the assumptions outlined Actual savings will depend on your personal circumstances.
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. Actual vehicle prices are based on specific vehicle and accessories, prices and savings may vary based on additional options selected with vehicle. Oly does not act as your agent or representative in respect of the purchase of any vehicle. Oly does not provide any advice or recommendations in relation to the purchase of any vehicle.
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