Electric vehicles (EVs) are more affordable than ever with novated leasing. The new Treasury Laws Amendment (Electric Car Discount) Act 2022 removes FBT liability and reduces the five per cent import tariff for EVs under a novated lease.
A novated lease packages your vehicle running costs into one payment, reducing your taxable income and saving on GST. It also makes fuel-efficient EVs more affordable by exempting them from the luxury car tax threshold and the five per cent import tariff. For more information about the novated lease electric vehicle advantages, click here.
Save Money on Fuel
If you’re looking for a way to save money on fuel, an EV might be the perfect solution. EVs use much less petrol than a traditional vehicle and can even be powered by home electricity. As a result, you can often save around $10 on a full fuel tank per 100km.
Additionally, EVs typically cost less to run, as they don’t need costly engine and transmission components. Some EV drivers claim to save up to $30 per week on their energy costs compared to a petrol car.
Combined with tax savings, the affordability of an EV can make it a very cost-effective choice to own. Novated leasing makes it easier to manage your finances, with your vehicle payments taken out of your pre-tax salary each pay cycle.
Moreover, EVs are more affordable than other cars because they sit below the Luxury Car Tax threshold (currently $89,332) and receive a five per cent import tariff discount under a novated lease. It can make a $50,000 EV up to $4,700 cheaper than a comparable petrol model, making an EV the most attractive option in terms of cost. For more information about the novated lease electric vehicle advantages, click here.
Save Money on Tax
With the government offering a range of EV incentives, buying one can be easier than you think. And, as Australia’s leading novated lease provider, we know how to help you save even more money on your EV purchase.
Novated leasing reduces your taxable income by deducting payments from your pre-tax salary before tax is applied each pay cycle. It can reduce the total cost of your EV and save you money on running costs as well.
And, as EVs are often cheaper to run than petrol or diesel cars, you’ll see the savings on your petrol and maintenance bills quickly add up. Plus, because they’re more environmentally friendly, EVs generally have higher trade-in value when replacing them.
Getting an EV with a novated finance lease can also open up eligibility for a range of state and territory rebates, saving you money. The maximum refund for an EV is $10,000, making the EV more affordable and enabling you to access a wider variety of features and technology that may not be available elsewhere. It includes advanced safety features and autonomous driving capabilities.
Save Money on Maintenance
There are many ways to save money on car costs, including taking out a novated lease. With this solution, you can bundle all the costs of your vehicle – including fuel, insurance, tyres and servicing – into one easy-to-budget monthly or fortnightly payment. It can help you reach your short and long-term financial goals while reducing your carbon footprint.
In addition, EVs have fewer moving parts than traditional vehicles, which means they require less maintenance and can save you money on routine services. Moreover, EV batteries last longer and are more resilient to damage caused by heat and cold. As a result, you will have more cash in your pocket each month to spend on other lifestyle items.
Another way to maximise your savings is by selecting an electric car under a novated lease. With a novated lease, all running expenses (fuel, insurance and servicing) are paid from pre-tax dollars. It helps reduce your income tax liability and FBT, which can be a significant cost for those driving petrol or diesel cars.
With an increased interest in EVs, novated leasing has become even more attractive thanks to changes to the Fringe Benefits Tax (FBT) for EVs and other fuel-efficient cars. The new act exempts the cost of EVs from FBT for those entering into a packaged novated lease, which can save you thousands each year. For more information about the novated lease electric vehicle advantages, click here.