Considering switching to an electric vehicle? EV novated lease offers could be the ideal way of financing it – not only will you save on Fringe Benefits Tax, but it can also consolidate all your car expenses into one monthly payment plan.
Plus, electric vehicles (EVs) often qualify for discounts such as reduced import tariffs – making them even more desirable given Australia lags behind other nations in EV uptake.
Save Money on Your Taxes
With an EV Discount and reductions in Import Tariffs, now is the perfect time to switch. Novated leasing simplifies switching; all vehicle finance, registration, insurance and servicing expenses are collected as one payment from pre-tax salary, decreasing taxable income while maximising take-home pay.
Get a Brand New EV
Electric vehicles (BEVs and PHEVs), thanks to the Labor Government’s Electric Car Discount policy, have become more cost-effective and accessible. From July 1, 2022, onwards, any EV or PHEV priced up to $89,332 plus on-road costs that are salary packaged through novated lease agreements qualify as FBT-exempt when salary packaged through salary sacrifice arrangements.
Your peace of mind will also increase when choosing an EV as its likely warranty may cover it throughout its lifespan, particularly if opting for a plug-in hybrid EV (PHEV), which uses gasoline when its battery charge drops and offers short distance travel on electric power alone when needed. That can save money in the long-term, reducing air costs while giving you peace of mind knowing your new ride will feature cutting-edge technologies and features.
Enjoy the Benefits of Owning a Car
Leasing an electric vehicle (EV) is an exciting way to experience cutting-edge technology. Since EVs are evolving rapidly, it may already be time for an upgrade by the time your lease term ends, as their battery range and charging speeds continue to expand.
Notoriously tax-efficient, EV novated lease offers also save money in operating costs like fuel, servicing, tyres, registration and insurance – these costs typically are deducted from pre-tax salaries via salary sacrifice. A novated lease also covers maintenance and wear-and-tear charges such as repairs, tyre replacement and accessories replacement – an aspect often forgotten when people purchase electric vehicles outright – something which could cost thousands in the long run!
Get a Great Deal
An effective strategy for securing an affordable electric car purchase is research. Learn the available vehicles, their costs and features, and any possible government incentives. Ultimately, price comparisons between dealerships and government programs should help you secure the best price on an EV car purchase.
The Labor government has introduced legislation exempting FBT for electric and plug-in hybrid vehicles that meet the Luxury Car Tax (LCT) threshold ($89,332 for 2023/24) on purchase or leasing costs and most running costs such as registration, tyres and maintenance for qualifying EVs or PHEVs that meet LCT threshold. You can save thousands when purchasing or leasing one this way! You may even claim running expenses such as registration, tyre replacement, and maintenance.
Leasing an electric vehicle (EV) is an excellent way to experience cutting-edge technology without making a significant financial commitment. Unfortunately, exiting from a lease agreement when your circumstances change can be tricky – you could incur termination charges and penalties of thousands if you attempt to end early.
The benefits of an electric vehicle (EV) are many and varied. In addition to their fuel efficiency, they emit much less CO2 than petrol guzzlers. While the initial purchase price of an EV can be higher than their traditional counterparts, the costs associated with owning an EV are largely covered by government incentives and the fact that running expenses such as insurance, registration, servicing, tyres, and fuel are included in the lease payments. Combined with the ability to salary package these vehicles and reduce taxable income, it’s no wonder why employees are choosing EV novated leasing options.