How to save tax in Australia? 3 sweet ways you could save stacks!

These days, the cost of living in Australia is revving up faster than a Formula 1 off the starting grid and every dollar counts. That’s why Oly is all about championing savings, including bringing you these three tips to help save on income tax.

3:30 minute read

Published on August 24, 2024

The benefits of a novated lease for small to medium business

Key takeaways

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With a novated lease, you can pay for a new or used car using a mix of before-tax and after-tax salary. You could save thousands in tax each year!

Thanks to the EV Discount, you can lease an eligible EV and pay from before-tax bucks. This way, your weekly payments could match a petrol car worth $20k less!

You can claim home charging costs in your EV lease! Just prove your energy use and costs via a smart meter or in-home charger with built-in metering.

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Tax saving tip 1: Salary sacrifice your car and reduce your taxable income

Yes, it’s possible to salary sacrifice your car! It’s a nifty form of salary packaging called novated leasing – and thanks to Oly, Aussies employed by small and medium businesses can get on board and snag any possible tax savings.

With a novated lease you pay for a new or used car using a mix of your before-tax and after-tax salary, which could save you thousands of dollars each year.

Plus, we all know what a drag paying all those car-related bills can be. Fuel, rego, servicing, insurance… boring! With a novated lease, all these expenses get rolled into one cruisy, regular payment taken directly from your pay – no more bill overload.

Tax saving tip 2: Ramp up tax savings with the EV Discount

You could tap into even greater tax savings when you lease an eligible electric car thanks to a sweet government incentive called the EV Discount.

Take out a novated lease on an eligible EV and you can pay for your electric car 100% from your before-tax salary thanks to the fringe benefits tax (FBT) exemption.

You also pay no upfront GST (up to $6,334 in FY25) on the driveaway price of an eligible EV, and no GST on its running costs either.
All this adds up to you leasing an electric car for almost the same weekly price as a petrol car worth over $20k less^.

Tax saving tip 3: Claim electricity for charging your EV

You can also claim home charging expenses in your EV lease, so long as you can prove how much energy’s been used to charge your EV, and the cost. All you need is a smart meter installed in your home or an in-home charger with in-built metering – sweet!

Oly is here to help you save stacks

Oly has you covered with a novated lease package: from scoring your wheels to sorting insurance and nailing down the payment plan with your boss.

And because Oly’s backed by one of Australia’s largest and most trusted novated leasing providers, you benefit from serious purchasing punch to get a great deal on your dream car while Oly takes care of all the leasing admin.

Get in touch now and hit the road smiling with an Oly novated lease.

^ Disclaimer

Displayed price is only available through a novated lease administered by Oly. Estimated costs have been determined based on the following assumptions: 1) The example assumes that the car is an eligible zero or low emissions vehicle, 2) The lease is an Oly fully maintained lease, 3) A 5-year lease term, 4) A residual value of 28.13% of the vehicle purchase price payable at the end of term, 5) The interest rate used to calculate the weekly lease payment (in the case of a novated lease) and the weekly repayment (in the case of a car loan) is the same, 6) Gross annual salary of $90,000, 7) An annual distance travelled of 15,000kms, 8) The value of the car at the first retail sale was below the luxury car tax threshold of $91,387 for fuel efficient vehicles, 9) The car is first held and used on or after 1 July 2022, and 10) The vehicle is purchased in NSW. Additionally, the estimated annual operating costs includes estimates of fuel/electricity, maintenance, four replacement tyres, registration, CTP and comprehensive insurance, roadside assistance, and fleet management fee have been calculated on a GST exclusive basis, on the assumption that your employer will be entitled to GST input tax credits and that they will pass on the benefit to you. GST is payable on your ECM contributions. State Stamp Duty rates apply. PAYG tax rates effective 1 July 2024 have been used. The indicative price quoted for the novated lease is based on vehicle quotations received on 1 June 2024 and does not include any optional extras. Any optional extras that you choose will affect the cost of the novated lease and residual value. The novated lease offer is based on the assumption outlined in the comparison table and is an indicative cost approximation of the selected vehicle and model stated and the amounts may change at the time the novated lease quotation is completed and finalised. Your individual circumstances have not been taken into account as this will affect the overall weekly cost amount and the benefits of a novated lease. Savings shown are indicative and reflect estimated tax savings over the full-term of the lease. The total amount saved is a comparison between a novated lease based on the assumption outlined above and the purchase of a vehicle and payment of running and maintenance costs using post-tax earnings. Actual savings will depend on your personal circumstances and may vary depending on the vehicle model and price. Oly recommends that you seek independent financial and taxation advice.

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