Novated lease agreements for electric or plug-in hybrid cars allow employees to finance both the cost of the car itself and its running expenses through pre-tax salary, eliminating FBT and saving GST costs.
Electric vehicle (EV) prices are becoming more cost-effective, and many Australians want to do their part for the environment. However, making the switch can be challenging due to price barriers. Learn more about the benefits of a fully maintained novated lease electric vehicle.
Easy to manage monthly repayments
By salary packaging an electric vehicle under a fully maintained novated lease agreement, you can reduce your taxable income and take advantage of various government incentives. Plus, fuel, servicing costs and tyre savings could add up – not to mention lower residual values at the lease term’s end!
If you’re considering an EV, compare all your options before selecting. When considering costs associated with running the car, including maintenance and insurance costs, consider these when considering its true cost. Depending on your needs and personal preferences, fully managed or self-managed novated lease arrangements could be more suitable options.
Under a fully maintained novated lease arrangement, your financier will handle the sourcing and purchase of your vehicle before deducting finance and running costs from both pre-tax salary (and, if eligible, post-tax income). Payments of novated leases are fixed amounts each month, making budgeting simpler compared to loan repayments. Plus, you’ll save GST/FBT when compared with buying/owning traditional cars, which could save thousands over its lifespan! Learn more about the benefits of a fully maintained novated lease electric vehicle.
A fully maintained novated lease covers your vehicle’s running costs in one convenient monthly payment, including comprehensive insurance, servicing costs, registration renewal fees and fuel. Tyres and breakdown assistance coverage is also provided – with payments taken directly from pretax salary, saving money on GST that otherwise would have been payable.
Battery electric vehicles (EVs) feature fewer moving parts and thus require less maintenance than petrol cars; however, regular servicing for their brakes (pads and discs), suspension, wheel alignment/balancing/alignment, plus an annual road checkup is still recommended; servicing fees in an EV are around 40 per cent less expensive compared to their counterpart ICE models.
No unexpected out-of-pocket costs
Experience peace of mind with a fully maintained lease agreement, wherein your monthly payments cover everything from car costs, all electricity and registration expenses and roadside assistance and tyre costs to roadside assistance and roadside assistance costs. EVs feature fewer moving parts than petrol/diesel vehicles, so they may require less maintenance over time and have longer battery lifespans to save money in the long run.
Electric vehicles (EVs) often boast lower running costs than their petrol or diesel counterparts, thanks to lower fuel and electricity rates and potential rebates of up to $10 per 100km cheaper operation than a petrol or diesel car.
Novated leasing can be an ideal way to finance an electric vehicle. Not only can you take advantage of before-tax savings on lease repayments, but GST savings on purchase price and associated running costs, such as electricity mileage servicing tyres, may also apply.
Electric vehicles (EVs) can help the environment and save you money over time on running costs, but making the switch may be expensive if you don’t have a salary package or buy your car outright. Novated leasing provides an economical and effective solution that enables users to enjoy the environmental advantages sooner.
No matter if it’s a battery electric vehicle (BEV), plug-in hybrid electric vehicle (PHEV), or hybrid electric vehicle (HEV), novated leasing can help reduce upfront expenses and GST costs by salary sacrificing some of your pre-tax income – meaning all finance and running costs are deducted directly from wages before tax is calculated.
That means you will save on the purchase cost of an EV and fuel, registration, insurance and servicing expenses. Furthermore, given their reduced moving parts compared to petrol/diesel vehicles and potential longer lifespan. Adding to this is the new Fringe Benefits Tax (FBT) exemption available for eligible EVs/PHEVs under novated leasing, further encouraging low-emission car adoption through this route.