EVs are already the future of motoring and are rapidly becoming more affordable with Government incentives and low running costs. With an FBT exemption on EVs and PHEVs through a novated lease, it makes even more sense to go electric!
By salary packaging an EV, you can save up to 47% Fringe Benefits Tax on purchase and running costs. EVs and PHEVs under the Luxury Car Tax threshold of $84,916 qualify for this.
Benefits
Many people assume that EVs are too expensive. However, an EV-novated lease can be the most affordable way to get into one. An EV novated lease with a fully maintained package can cost around $1,000 per month and save you up to $6,900 yearly compared to purchasing outright. These savings include your finance, petrol, registration, tyres and servicing costs. Government incentives are also available to make your switch even more financially rewarding.
Unlike conventional fuel-powered cars, EVs run entirely on electricity. It allows them to produce fewer emissions and have lower running costs, saving you money in the long term. You can use an online EV novated lease calculator to determine how much you could save on your monthly payments.
The Australian Government has made it even easier for you to choose an EV by making them FBT-exempt. It means you can salary sacrifice them with your novated lease and reduce your taxable income, saving you and your employer money. The exemption applies to all new EVs with a minimum battery size and model standard. It also includes PHEVs, which combine an electric motor with a petrol engine to allow you to drive on petrol and electricity and BEVs, which are fully electric and can be operated entirely off-road.
An EV novated lease also comes with the added benefits of being a greener choice, giving you peace of mind that you’re driving a low-carbon vehicle. If you want to reduce your environmental impact further, there are several other ways to save energy, including switching to solar and installing a home battery system.
As technology advances, EVs are constantly getting better and cheaper. A fully-maintained EV novatedev.com.au EV novated lease allows you to upgrade to the latest model with enhanced performance, quicker charging, and more features, ensuring you’re always at the cutting edge of innovation. You can trade it in when your novated lease ends, so you’re never out of date.
Tax Savings
EVs aren’t just better for the environment and more affordable to run and maintain. They tend to have lower repair and fuel costs, so you’ll save money over the life of your lease. The savings are even more significant if looking at an EV with all the latest features and technologies.
Many EVs are eligible for additional benefits, rebates and incentives. These could be as simple as free parking or a discount on your purchase. You can find all the available EV discounts, tax credits and incentives by searching online or asking your dealer. Some of these are only available in specific regions, so you’ll need to research to see if they apply to you.
The cost of running an EV is much lower than a petrol vehicle as there is no fuel. Additionally, servicing costs are typically cheaper because there are fewer moving parts. It is especially true for EVs as their battery doesn’t wear down as quickly.
Moreover, when it’s time to service your EV, you won’t need to pay for the GST as these costs will be covered by your novated lease payment. It is because these payments are deducted from your salary before they’re taxed.
However, it’s important to remember that the tax benefits of an EV novated lease are only available if you use the vehicle for work purposes. Getting proper legal, financial and tax advice is essential before entering into an arrangement like this. For more information, be sure to get in touch with our team of experts today.
Buying an EV
There’s never been a better time to switch to an electric car. The EV market is booming, with more and more models becoming available from more and more brands. In addition, thanks to the Government’s EV Discount, leasing an EV via a novated lease has never been cheaper.
