Novated leases just became even more financially advantageous with legislative changes that eliminate FBT from electric vehicle purchases made on novated lease agreements, opening up access to more cost-effective cars for leasing.
Electric vehicles (EVs) offer many advantages over petrol vehicles, and novated leasing can help employees access them more easily. Here are five reasons for making the switch to a novated lease electric car.
Save Money on Your Taxes
With the government promoting zero and low-emission vehicles, now is an excellent time to purchase or lease one. Novated leasing provides employees with great savings both on purchase price and operating costs; payments can even be deducted directly from pre-tax salary (known as salary sacrifice), helping lower the tax burden by up to 60%!
Fully maintained novated lease electric car come equipped with comprehensive coverage that includes comprehensive insurance, servicing, registration renewals and fuel payments – plus they’re GST-free!
Electric vehicles (EVs) often fall below the luxury car tax threshold and may qualify for state/territory incentives that make them even more economical, making novated leasing one an even wiser financial choice than purchasing it outright.
Get on the Environmentally-Friendly Road Sooner
Are you seeking to have a positive environmental impact and make savings at the same time? An electric vehicle could be just what is needed – however, its upfront purchase cost might be prohibitive for some Australians – however novated lease can help alleviate that barrier.
Electric vehicles (EVs) have become more widely adopted due to the combined efforts of Federal and State governments, including an FBT exemption for battery, hydrogen fuel cell or plug-in hybrid electric vehicles valued under $84,916 as a way of encouraging workplaces and individuals alike to adopt these vehicles.
FBT exemptions make electric vehicles more affordable when salary is packaged with a novated lease, potentially saving thousands over time. A novated lease can help you find an EV that fits both your budget and lifestyle needs, including maintenance costs for tyres and batteries; furthermore, it enables customisation as well as moving it between employers should your employment change; plus national fleet discounts as well as the flexibility to transfer at any point during its term.
Get a Better Deal on a New EV
The Labour Government recently unveiled an FBT exemption on new EVs and PHEVs to make them more cost-effective for novated lease clients and encourage individuals and businesses to switch over to cleaner forms of transport in order to reduce emissions. This policy encourages individuals as well as companies alike to switch over from fossil-powered cars towards electric or hydrogen-powered ones for emissions reduction purposes.
Save on Fuel
An electric car is far more fuel-efficient than its petrol equivalent, eliminating the need to stop for petrol and making one trip over 300 kilometres on one full charge! You can even use charging stations at work and home to recharge; costs associated with this may even be claimed back through your novated lease agreement!
Electric vehicles (EVs) become even more cost-effective when you opt for a novated lease agreement. Registration, insurance and maintenance expenses decrease significantly when driving an EV; additionally, its regenerative braking system helps lower electricity bills by returning energy to the grid.
Lower Taxes
With a novated lease, your employer takes some or all of the payments from your pre-tax salary, which can reduce your taxable income and leave you with more disposable income. Additionally, the lease costs and running expenses like tyres, fuel, registration and insurance are bundled together into one payment, which can make it easier to budget for them.
Furthermore, novated leasing makes it easy to qualify for a federal tax credit that may otherwise be difficult to claim on an individual purchase. And because EV innovation is happening so fast, you won’t be stuck with outdated technology when you want to trade your lease for a newer model. It is a complex arrangement, so we recommend seeking professional advice to ensure you maximise your savings.