McMillan Shakespeare (MMS) has expanded its novated lease portfolio to 90,000 vehicles after another year of growth, with the company reporting continued sales momentum heading into FY27.
Novated leases under management increased 13.5% during FY26, while group novated lease sales rose 8.4% despite what MMS described as a highly competitive market.
For one of Australia’s larger salary packaging and novated leasing providers, the result points to continued demand for novated leasing at a time when cost-of-living pressures, electric vehicle incentives and an expanding choice of vehicles are influencing employee purchasing decisions.
Rob De Luca, CEO and Managing Director at MMS, said the result represented a record year for the company’s novated leasing operations.
“We delivered a record novated performance in FY26, with leases under management up 13.5% to 90,000 and sales growing 8.4% despite a highly competitive market.”
Importantly, MMS says that momentum has continued beyond the end of the financial year, with novated lease sales in July 2026 up 8%. The company has identified the environment for novated leasing and salary packaging as supportive heading into FY27.
New employers provide another avenue for growth
MMS is also expanding the number of employees with access to its salary packaging and novated leasing products.
During FY26, its Group Remuneration Services business secured 14 net new client wins, collectively providing access to approximately 103,000 employees. Salary packages across the business increased 7.1% to 402,000.
The company has also been investing in additional sales resources. MMS reported that 37% of second-half FY26 novated lease orders were underpinned by investment in sales FTE, suggesting it is putting additional capacity behind the growth opportunity.
At the same time, the company is pursuing a broader distribution strategy rather than relying solely on traditional large corporate salary packaging clients.
Its Oly business delivered 77% growth in novated lease sales, while the number of registered Oly employers increased 185% during the year. MMS has positioned Oly as part of its strategy to increase its presence among small and medium businesses.
De Luca said the performance supported the company’s approach to the SME market.
“Oly was a standout performer, delivering 77% growth in novated sales and 185% growth in new employer registrations, validating our strategy to expand into the SME market.”
MMS has also broadened distribution through its NAB partnership and has been working to simplify the process for employers joining the Oly platform. Its FY26 results presentation reported a 23 percentage point increase in employer-to-lease conversion alongside the increase in registered employers.
EVs becoming a bigger part of novated leasing
Electric vehicles have also become an increasingly important contributor to MMS’s novated leasing volumes.
New battery electric vehicle sales through MMS increased 113% during FY26, with BEVs accounting for 57% of all new novated lease sales, compared with 31% in FY25.
MMS attributed part of this growth to greater certainty around the Federal Government’s FBT exemption for eligible electric vehicles, and expects the shift towards EVs in both novated leasing and fleet to continue supporting the business in FY27.
While EV growth is becoming an important part of the novated leasing market, MMS’s overall numbers suggest the underlying demand is broader than one vehicle technology. The company has also pointed to ongoing cost-of-living and inflationary pressures as factors supporting interest in salary packaging.
Growth flowing through to the broader business
The increasing number of novated leases is also contributing to growth in MMS’s Group Remuneration Services division.
GRS revenue increased 11.2% to $351 million, operating income rose 10.3% to $320.8 million and EBITDA increased 24.8% to $137.2 million. The division’s operating margin increased to 42.8%.
Onboard Finance receivables, which support the company’s novated leasing funding model, increased 16.6% to $587 million.
The combination of a larger existing lease portfolio, new corporate clients, expansion into SMEs and continued EV demand gives MMS several potential sources of growth heading into FY27.
For Fleet Managers and employers, the 90,000-vehicle milestone also reflects the continued development of novated leasing as a significant channel for employee vehicle acquisition. The next stage for providers such as MMS will be maintaining that growth while managing an increasingly competitive market and a vehicle mix that is changing rapidly as EV adoption increases.
