Advanced battery technology and increasing investments in charging infrastructure have made electric vehicles increasingly affordable for Australians. Novated leasing can make owning an EV even more appealing, providing significant tax benefits when using salary packaging to purchase one. Check the EV novated lease calculator.
Even more so now that government incentives make eligible EVs tax-free when leased through novated leasing. Why not give it a go?
How it works
With the Australian government’s Electric Car Discount, now is an opportune time to switch to an eligible EV through novated leasing – unlike traditional finance arrangements, it is GST-free, and payments are deducted directly from your salary before they’re taxed, significantly lowering taxable income and saving tax!
Novated leases provide flexible terms, access to the latest vehicles and the convenience of one monthly payment that includes budgeted running costs – eliminating unexpected vehicle expenses. Furthermore, should you leave your employer or change vehicles during the lease term, you don’t have to worry about selling or disposing of your current vehicle before leaving behind its monthly payment commitments.
Benefits
Not only can EV ownership unlock significant financial savings, but there can also be multiple other advantages associated with owning one – for instance, taking full advantage of state and federal EV incentives that could save thousands of dollars over time.
Full ownership allows drivers to tailor and modify their cars according to their needs and desires. It is especially valuable in electric vehicles, where models change rapidly and new features become available.
When purchasing an electric vehicle (EV), you can also claim expenses like maintenance, registration, and insurance that may not be applicable when leasing one. To find the option that makes sense, talk with an experienced Salary Packaging expert.
Taxes
Good news – now is an ideal time to switch to an electric vehicle, thanks to the Australian Government’s EV Discount! With a novated lease, you could save more by including both finance and running costs as one monthly pre-tax payment.
Electric vehicles (EVs) are considered low-risk investments for financiers. Their purchase prices and fuel costs are significantly lower than traditional vehicles, meaning you could receive faster approval.
Electric vehicles (EVs) that were first held and used on or after 1 July 2022 are also Fringe Benefits Tax-exempt, meaning they could save you thousands in Fringe Benefits Tax if first purchased after this date – further making EVs more cost-effective. They already enjoy a five per cent import tariff discount to make ownership much more cost-effective.
Incentives
People often assume EVs are out of reach financially; however, this may not always be the case. Salary packaging through a novated lease can bring significant savings compared to purchasing or financing an EV outright or through car loan finance. Check the EV novated lease calculator.
Novated leasing allows you to pay your vehicle and running costs from pre-tax salary, which can help lower taxable income and save on Fringe Benefits Tax (FBT) and GST. Furthermore, Australian Government legislation exempting electric vehicles (EVs) under the luxury car threshold from FBT can further increase savings.
EV technology and driver assistance features continue to advance rapidly, offering those interested in experiencing cutting-edge innovations without making a significant commitment. An EV can cost as much as $10 less per 100km than its ICE equivalent, depending on electricity rates, petrol costs and usage costs.
The EV Novated Lease Calculator is designed to help you get an estimate of how much you could save by switching to an Electric Vehicle. This calculator includes the car and all running costs such as fuel or electricity, registration, tyres, insurance & servicing to give you a complete picture of your savings.
Leasing an EV makes more sense than buying one outright with finance because you are protected against quickly changing technology by leasing and turning the vehicle in at the end of your lease term. It is particularly useful if you are concerned about being stuck with an outdated car before your loan payments are fully completed.