My employee wants to take out a novated lease with Oly...

How does Oly communicate with my employees?

Your employee has contacted Oly because they’re interested in using a novated lease to get a new car. This means they’ll be able to lease their car – and pay for all their car-related expenses – with one easy payment taken directly from their salary.

Oly will be in regular communication with your employee to help guide them through the application process, to help them source their car, and then to help them manage the ongoing leasing arrangement.

How does Oly support my employees when
they sign up?

Oly helps your employee secure their new car through every step of the novated lease process. Whether it’s guiding them through the application process, finding their dream car, or managing the end-of-lease process, Oly is a partner on the journey.

How does novated leasing support our
employee value proposition?

By bundling all your employee’s car-related costs – including the price of leasing the car itself - into one payment taken directly from their salary, Oly makes having and running a car easy and affordable. And since part of that payment is taken from their pre-tax salary (or entirely pre-tax in the case of eligible electric cars), your employee gets more from their salary and may pay less tax too. An employee would see that as a pretty significant perk of their job.

Is there a cost to our business?

All employers need to do is help Oly set up the novated lease in your payroll processes and include the lease as part of your BAS and FBT reporting. Employers can pass the costs and fees associated with novated leasing to their employees, reducing the costs and inconvenience to your business. Get in touch to talk about the details.

Are there any restrictions on the type of car my employee can get?

A novated lease can be applied to almost any car, be it new, used or even your existing car. The only guidelines set by the government are:

- To be classified a 'car' a vehicle needs to carry fewer than 9 passengers and less than one tonne

- Used cars need to be less than ten years old with no more than 300,000kms clocked when the lease expires

Who is Oly?

Oly is Australian-owned and operated and backed by the McMillan Shakespeare Group (MMS), one of Australia’s largest and most trusted salary sacrifice and novated lease providers.

What happens if my employee leaves their job?

When your employee leaves their job, it’s their responsibility to let Oly know so they can choose whether they’d like to transfer the lease to their new place of work or pay out the remaining lease.

You’ll still need to report on their input tax credits and fringe benefits tax benefits for the portion of the reporting period they were still employed.

What happens if my employee goes on unpaid leave?

Your employee is only able to salary sacrifice while they’re earning a salary, so you won’t need to deduct or transfer any money for their novated lease while they’re not being paid.

It’s up to your employee to let Oly know they’re going on unpaid leave and to discuss what will happen with their novated lease while they’re not working.

What’s a ‘shortfall’ and what do I need to do if it happens?

Oly takes a portion of the payment for your employee’s novated lease from their pre-tax salary to reduce their taxable income. To keep from creating a fringe benefits tax (FBT) liability, the rest of the payment is taken post-tax.

A ‘shortfall’ is created when your employee doesn’t contribute enough post-tax income in a particular period to offset the FBT.

If this happens, it’s your employee’s responsibility to make up these payments directly to Oly. Oly will notify and guide them through the process if this happens but ask them to contact Oly’s customer assistance team if they need more information.