Fringe benefits tax (FBT) is a tax that gets applied to any benefits you might get from your employer that aren’t your salary or wages. An Oly novated lease is one of those benefits, so it might mean you end up having to pay FBT.
Oly uses the employee contribution method (ECM), which takes some of your lease payments from your after-tax salary to help reduce your chances of paying fringe benefits tax (FBT) on your novated lease at the end of the FBT year (31 March).
Thanks to the government’s EV Discount policy, eligible electric cars and petrol-based plug-in hybrids* (PHEVs) are exempt from FBT, so your novated lease payments can all be taken from your pre-tax salary.
*PHEVs are only FBT exempt until 1 April 2025
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.