Electric vehicles (EVs) are quickly becoming the future of motoring. Thanks to advances in battery technology and decreased fuel costs, EVs are more affordable than ever with a novated lease agreement.
Salary packaging your EV has never been more cost effective thanks to the Australian Government’s new EV Discount Policy amendments. FBT on EVs priced below the luxury car tax threshold ($84,916) will no longer apply and import tariffs have also been decreased significantly.
Save Money on Your Taxes
Electric cars can not only help save the environment – they can also save on taxes! Many EVs qualify for government incentives that lower prices and make ownership more affordable, which often pass on savings directly to leasing companies who incorporate the incentive value into your monthly lease payments and reap immediate savings!
Electric vehicles (EVs) are becoming more widely used, and the new Labor government aims to make them even more appealing by proposing legislation to remove Fringe Benefits Tax from low emission vehicles leased through novated leasing arrangements. This will significantly lower ownership costs of electric cars making them even more enticing options.
EV novated lease benefits (EVs) make financing and running costs like registration, insurance and maintenance easier to manage by consolidating payments into one monthly pre-tax installment throughout the year. By doing this you could save 45% compared with traditional financing of an EV.
Your petrol costs won’t change, but any electricity used to charge your EV through a novated lease can be claimed back as reimbursement. Of course, using commercial charging stations will likely be more cost-effective than paying at the pump for fuel refueling.
Novated leasing provides another benefit in that GST won’t need to be paid up front on either the cost of purchasing or operating expenses for your vehicle, since repayments come directly out of your pre-tax salary each month.
When signing a novated lease for an electric vehicle (EV), you could take advantage of 5% reductions in import tariffs. This could further lower EV prices – perhaps making your Tesla Model 3 even more affordable! Especially true if your fuel-efficient model falls within Australia’s luxury car tax threshold thresholds (this threshold currently stands at $84,916).
Get on the Environmentally-Friendly Road Sooner
If you’ve been considering switching to an electric vehicle (EV), now is the time. These future-forward vehicles offer environmental-friendly transportation that’s more eco-friendly than ever and novated lease agreements make this easier than ever before.
Electric vehicles (EVs) are often cheaper to run than petrol vehicles, usually around $10 cheaper per 100km with lower maintenance costs thanks to having fewer moving parts and being powered by electricity that is produced more sustainably than fossil fuels. Additionally, charging an EV costs less and uses electricity produced more sustainably.
Many EVs also qualify for government subsidies and rebates, such as Australia’s Luxury Car Tax threshold of $84,916 in 2022/2023 being FBT exempt – meaning you could save on your novated lease payments and running costs by choosing an EV that qualifies. The EV novated lease benefits are clearly undeniable in this situations.
The Australian Government is taking steps to make switching to electric vehicles through novated lease more straightforward for Australians, with the aim of reducing emissions, encouraging sustainable transportation practices, and supporting businesses and employees in making an effort for environmental sustainability.
As such, the Federal Government has taken steps to make electric and plug-in hybrid electric vehicles (PHEVs) more cost-effective to purchase and run by making them eligible for an FBT exemption under novated lease arrangements. This should make EV leasing significantly more accessible and affordable for anyone leasing them through their employer.
Novated leasing can help you obtain an eco-friendly vehicle by giving you access to purchasing a home charging kit for your electric vehicle (EV). By charging from the power grid instead of at public charging stations, this home charging kit can further cut fuel and electricity costs while offering greater savings overall.
While full-electric cars have become more and more popular, we can also assist you in finding hybrid vehicles if the switch to all electric is still too radical for you. Plus, we can tailor a finance package specifically to meet your individual needs. So if you’re thinking about upgrading to an EV car today, reach out!
Get a Vehicle That’s Right for You
Choose an electric vehicle on a novated lease to find one that meets your lifestyle and save on associated expenses such as rego, insurance, maintenance, roadside assistance and tyres.
An electric vehicle’s full battery charge takes around 300 kilometers, meaning less frequent stops at service stations and commercial charging stations will allow faster recharge times before long distance travel. And your EV novated lease benefits provider may reimburse the costs associated with electricity use through their contract lease agreements!
Electric vehicles (EVs) typically contain far fewer mechanical parts than petrol cars, meaning there are fewer potential issues with them. But even an EV still requires routine maintenance such as new tyres, oil changes and routine inspections to keep running smoothly; leasing can help give you peace of mind that these expenses are covered and prevent unexpected expenses down the road.
FBT exemption can make an EV leased on a novated lease up to $4,700 less annually than its petrol equivalent; that can make a big difference over time in your budget.
Novated leases make securing financing much simpler as lenders will gain a clearer picture of whether your monthly repayments can be managed. Because your repayments come directly out of pre-tax salary, their commitment is clearer for them.
Get a Better Deal
Electric cars can help reduce your carbon footprint. Unfortunately, however, they’re often not affordable – but novated leasing may provide a viable solution at a more reasonable cost. With salary packaging you can salary package the cost of your ev, saving both income tax and GST; plus since payments are deducted directly from pre-tax salary they help manage cash flow better than other forms of vehicle finance.
EV novated lease benefits give you access to a selection of electric vehicles perfect for every need and lifestyle, including SUVs for families as well as longer range models that can go further on a single charge. Furthermore, since each lease can be tailored specifically for you and your specific requirements, you’re sure to make the most of your new purchase!
An electric vehicle (EV) is more economical to maintain than either petrol or diesel vehicles due to fewer moving parts and no complicated exhaust systems that can become ineffective due to carbon build-up. Furthermore, their battery is guaranteed for 8 years or 240,000km!
If you’re not yet ready to commit fully to purchasing an electric vehicle (EV), now more affordable alternatives exist thanks to the FBT exemption legislation governing any purchase after 1 July 2022 that will qualify as fringe benefits tax-free – saving employees and employers thousands each year in fringe benefits tax (FBT).
So if you’re curious about driving an electric vehicle (EV), now is the time to act. Speak to beCarWise today about how an EV would fit with your budget, receive a no-commitment quote and learn about how novated leasing works, plus receive indicative costs associated with typical lease packages such as registration, insurance, servicing, tyres and vehicle charging – plus find an EV that meets all your lifestyle, driving needs and budget needs!
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