Unlocking the Electric Vehicle Revolution: Novated Leasing for Millions More Australians
The dream of driving a brand-new electric vehicle (EV) just became a lot more accessible for millions of Australians, thanks to a groundbreaking collaboration between Hyundai and Oly. This partnership has revolutionized the novated leasing process, opening doors to significant savings and tax benefits for employees of small-to-medium businesses (SMBs). With the Australian Government’s generous electric car Fringe Benefits Tax (FBT) exemption, upgrading to an EV is no longer a luxury limited to employees of large corporations.
What is Novated Leasing, and Who is Eligible?
A novated lease is a salary-sacrificing arrangement that allows employees to bundle car-related costs—such as lease payments, insurance, registration, and servicing—into one package, paid partly with pre-tax income. This setup can significantly lower taxable income, resulting in notable savings.
The Australian Government’s EV Discount further amplifies these benefits, exempting eligible electric cars valued up to $91,387 from FBT. This means that for qualifying vehicles, payments can be made entirely from pre-tax earnings, translating to thousands of dollars in savings over the life of the lease.
Historically, only employees of large corporations or government entities could access this benefit due to the complexities of administration. Now, Oly’s innovative technology platform streamlines the process, making it accessible to employees of SMBs, which represent 67% of the Australian workforce.
How Hyundai and Oly are Driving Change
By partnering directly with Hyundai dealerships, Oly simplifies the process for SMB employees. Prospective EV owners can walk into a Hyundai dealership, select an EV, and Oly takes care of the rest—right down to working with the employer to manage payroll deductions.
“Oly opens the doors to novated leasing and the possible tax savings to a huge new group of Australians,” says Sean Tyniec, Head of Oly. This streamlined process means SMB employees can now drive a $60,000 electric car for roughly the same weekly cost as a $39,000 petrol vehicle, based on a five-year novated lease.
Why Electric Vehicles?
The appeal of EVs isn’t just about saving on fuel. They also benefit from lower running costs, reduced environmental impact, and access to government incentives like the FBT exemption. Hyundai’s EV lineup, in particular, stands out as some of the best on the market.
Hyundai’s Award-Winning EVs
- Ioniq 5: The futuristic hatchback with its bold pixel design was named 2022 World Car of the Year.
- Ioniq 6: A sleek, aerodynamic sedan that clinched the 2023 World Car of the Year title.
- Kona Electric: A compact SUV with concept-car styling and advanced tech features.
With a novated lease, a $69,493 Hyundai Ioniq 6 could cost the same weekly as a $38,990 petrol-powered Mazda CX-5, based on a salary of $90,000 and 15,000km annual travel.
Exclusive Perks for Hyundai EV Leaseholders
To sweeten the deal, Hyundai is offering novated leaseholders who opt for an electric vehicle before December 31, 2024:
- Free Servicing: A four-year, 60,000km service plan valued at $1190 for the Ioniq 6.
- Free Wallbox Charger: An Autel Maxicharger worth $1480 (installation excluded), which supports rapid home charging.
- Alternative Charging Voucher: A $1500 Evie network charging voucher, providing access to 240 charging sites powered by renewable energy.
Making the Transition to EVs Easier
This initiative is part of a broader push to put more EVs on Australian roads. In 2023, nearly 90,000 new EVs were sold—a record-breaking figure. With programs like Oly’s streamlined novated leasing and government incentives, EV ownership is becoming attainable for a wider audience.
If you’re employed by a small-to-medium business and considering an EV, visit your local Hyundai dealer and inquire about an Oly novated lease. As always, consult a trusted financial professional to discuss how a novated lease might work for your individual circumstances.
A Future-Forward Way to Drive
With the combination of Oly’s user-friendly platform, Hyundai’s leading EVs, and the government’s EV Discount, the path to sustainable, cost-effective driving has never been clearer. Whether you’re upgrading to an award-winning Ioniq or a cutting-edge Kona, this partnership is paving the way for millions of Australians to embrace the electric revolution.
Make the switch today and enjoy the benefits of lower costs, reduced emissions, and state-of-the-art automotive innovation.