It’s a little complicated, but the employee contribution method (ECM) is a calculation made by Oly to help reduce your chances of paying fringe benefits tax (FBT) on your novated lease at the end of the FBT year (31 March). By taking your payments from both your pre- and after-tax salary, Oly may be able to help you save money on your car without increasing the chances of a FBT bill.
You can check the ECM portion of your payments in your quote or figure out the amount you may have to pay when you sign up with Oly by using the online calculator.
Want to avoid the ECM and FBT? Taking out a novated lease on an eligible electric car under the luxury car tax threshold means you don’t have to worry about either of them!
Oly has the answer to most common questions: check out the full FAQs list
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.