The benefits of a novated lease for small to medium business
Imagine how rapt you’d make your employees if you could help relieve their cost-of-living crunch and put them behind the wheel of a spanking new car?
Thanks to the sweet tax perks of novated leasing, you could do just that. It’s why more and more businesses are tossing novated leasing into their mix of benefits – and why your business might want to get in on the action.
Here's how it works.
2:40 minute read
Key takeaways
What are the benefits of novated leasing for the employer?
Novated leasing is like the bee’s knees of employee benefits - it could help your employees stretch their pay. It’s like giving your employees a bonus with no extra money from your pocket.
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.
Everyone’s a sucker for a new car – especially when it could come with thousands of dollars in tax savings each year..
What are the benefits of a novated lease for the employee?
With novated leasing, you can snag a new or used car through a blend of pre- and post-tax salary (and 100% pre-tax for eligible electric cars under the government’s EV Discount!), which could save thousands in tax.
You also get to roll all the car essentials – fuel, rego, insurance, servicing… you name it – into one tidy payment for easy budgeting.
Can a small to medium sized business offer novated leasing?
Yes! Back in the day, novated leasing was typically only available to the big honcho organisations. Oly is here to bring the neat benefits of novated leasing to all businesses, no matter how small.
And with Oly, getting started is as easy as pie. Simply get in touch with Oly’s amazing team of leasing pros and they’ll be happy to help.
Who pays GST?
There’s no upfront GST cost to your employee on the new car! This could save employees up to $6,191 (FY 2023/24) – a bonus on top of the juicy tax benefits. Your employees could also save GST on the lease payments and running costs as you (the employer) can claim back the input tax credits on these costs and may choose to pass it on to your employees.
Why an Oly novated lease is great for your business.
Oly takes care of everything for you. So, you get to offer the sweet perks without the hassle.
Oly guides your employees through their leasing application, helps them find their dream car, and manages the end-of-lease process.
Not only that, Oly is backed by one of Australia’s largest and most trusted leasing providers - McMillan Shakespeare Group (MMS), bringing bigger buying power and great deals on cars. So, your employees could get a sweet deal on their car and great tax perks. Double win!
Keen to rev up the perks and draw more superstars to your workplace?
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