Electric vehicle prices have decreased considerably in recent years, yet still cannot compete with gasoline-powered cars on price alone. State and Federal governments are providing financial incentives by eliminating fringe benefits tax (FBT) on batteries, hydrogen fuel cells or plug-in hybrid electric vehicles. Learn more about the novated lease electric vehicle advantages.
Including an electric vehicle (EV) in your salary package through a novated lease arrangement could reduce registration, insurance and maintenance costs.
Save Money on Fuel
Emissions from electric cars (EVs) are much lower than their petrol-powered counterparts, helping reduce overall driving costs and operating expenses. Since electricity rates often surpass petrol costs significantly, leasing an EV through a novated lease agreement could save operational and fuel expenses.
With a novated lease, all vehicle expenses such as petrol, servicing and tyre costs, registration fees and CTP (NSW) payments can be claimed from pre-tax income for an electric vehicle lease agreement – offering substantial savings both in terms of purchase costs and running expenses compared with gas fill-ups. Charging infrastructure often proves more affordable to operate. Learn more about the novated lease electric vehicle advantages.
The recent passage of the Electric Vehicle Discount Bill means eligible EVs and PHEVs now qualify for fringe benefits tax (FBT) exemption, potentially saving drivers thousands annually in running costs for their EVs.
Given the rising cost of petrol and increased awareness about carbon emissions, an electric vehicle (EV) may be an ideal way to enhance both take-home pay and environmental sustainability. Contact us now and see how a novated lease could save you money!
Save Money on Tax
Electric vehicles offer significantly lower operating costs than petrol or diesel models, helping you save money on car expenses. Furthermore, as they emit no emissions, they’re better for the environment while likely fetching higher trade-in values when upgrading.
You’ll save on taxes by choosing an electric vehicle under a novated lease agreement. That’s because salary packaging allows you to write off 100% of its running costs, such as insurance, servicing, registration and tyre replacement, as tax-deductible expenses.
Save Money on Maintenance
With recent advances in battery technology and investments in charging infrastructure, electric vehicles are increasingly reliable and cost-effective. Furthermore, their reduced moving parts mean less likelihood of breakdowns that necessitate costly servicing fees compared to petrol/diesel cars.
With the recent FBT exemption, switching to an electric vehicle through a novated lease has never been more affordable. Since payments come from pre-tax salaries instead of income tax savings, income tax savings are significant, as are claims against vehicle running costs (fuel, registration fees, insurance premiums and maintenance) plus part of any electrical bill savings.
Plus, with fully maintained EV warranties, you’re assured your vehicle is covered by its original factory warranty – offering peace of mind! EVs can be game changers for your finances, and a novated lease is the easiest way to take the wheel of one!
Save Money on Insurance
Novated leasing provides an easy and secure way of accessing an electric vehicle, saving on fuel, registration, maintenance costs and insurance premiums while contributing less carbon than petrol-powered cars and even leading insurers offering reduced or no cost policies for these EVs.
With a novated lease, you can deduct the cost of your new car from your pre-tax income, potentially saving significant income tax and GST. Before making any decisions about finances, however, it’s wise to seek professional independent advice first.
Save Money on Registration
EVs have recently experienced significant growth, becoming more accessible at dealerships across Australia and Asia-Pacific regions. Many Aussies still believe EVs are out of their price range – but that’s not true!
Recent changes to tax legislation have exempted eligible EVs priced under $89,332 from Fringe Benefits Tax (FBT), making novated leasing one of the simplest and least expensive ways of getting behind the wheel of an electric vehicle.
Payments are deducted directly from pre-tax wages, helping reduce overall taxable income by as much as 47% and saving even more with FBT exemption – savings translating into reduced running costs, including insurance, registration, servicing and tyre costs.