You don’t have to be a big earner to get the benefits of a novated lease.
For example, someone earning $80k could save more than $2,692^ each year thanks to the novated leasing tax benefits. Plus, with a single regular payment covering petrol, insurance, servicing, rego and all other running costs, you could be better off compared to other ways of getting into a car.
Go for an electric vehicle (EV) and the savings could be even bigger. With the tax exemptions from the government’s EV Discount initiative, you could end up getting an EV for the same cost per week as a petrol car. That’s like getting a Tesla 3 for the same cost per week as a Mazda CX-5!
^ The estimated potential tax benefit is exclusive of GST and is based on the assumption that you would have paid for the lease from your post-tax salary (as opposed to salary sacrificing those payments from your pre-tax salary or a combination of your pre and post-tax salary). Payment includes: your car payments, registration, tyres, insurance and scheduled servicing. The estimated annual benefit will vary depending upon salary, employment circumstances, selected benefits and applicable tax treatment. The example assumes that you earn $80,000 a year, a 5 year lease term, an annual distance travelled of 15,000 kms, a vehicle valued at $33,606 and a 28.13% residual value. The estimated annual operating costs includes estimates of fuel/charging costs, maintenance, tyres, registration, comprehensive insurance and fees have been calculated on a GST exclusive basis on the assumption that your employer will be entitled to GST input tax credits and will pass on the benefit to you, reducing the impact of the GST. GST is payable on your ECM contributions. State Stamp Duty rates apply. PAYG tax rates effective 1 July 2023 have been used. Individual circumstances may vary. Contact Oly to discuss what you can package given your individual circumstances.
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Disclaimer: 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 or financial advice. Employers should independently consider whether a benefits program is appropriate for their organisation and seek advice where appropriate. 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 receive commissions in connection with its services.