While the initial price tag of an electric car is still a concern for some Australians, novated leases can help.
EVs can be purchased under salary packaging without paying Fringe Benefits Tax (FBT). It includes a new battery-electric and plug-in hybrid vehicle first used on or after 1 July 2022.
Save Money
If you want an electric car but can’t afford to pay for it outright, an EV-novated lease is the answer. Rather than paying for your vehicle outright with a loan that’s taxed at the highest rate, a novated lease uses a combination of pre-tax salary and post-tax deductions to finance your EV and pay for running costs such as electricity mileage, servicing and maintenance, rego (NSW) and insurance. It reduces your taxable income and can save you thousands of dollars annually.
With more Australians choosing to go green, there’s a growing demand for EVs that will help cut fuel costs and reduce emissions. While the initial investment may be higher than for a petrol or diesel car, many running costs are lower for an EV and can add significant savings. For quality novated lease electric car, check this out.
Additionally, electric cars typically depreciate less than petrol or diesel vehicles, meaning the cost of owning one will also decrease. It means a more affordable way to get around and contribute to environmental sustainability, especially with FBT being exempt from eligible electric and plug-in hybrid vehicles.
As a result, more Aussies are switching to an electric car through a novated lease to save money on their everyday commute. With more and more EV options, the choice has never been more accessible or affordable.
Get on the Road Sooner
As a result of the new FBT exemption on eligible electric vehicles, there has never been a better time to consider taking up an EV. While the benefits of switching to an EV are clear, it’s worth noting that purchasing one can be costly and may limit your options in the future. It is where a novated lease becomes an attractive option.
When you choose a novated lease on an EV, the first year’s comprehensive car insurance will be financed as part of your regular monthly repayments, which are paid from a carefully calculated combination of pre and post-tax salary (or fully pre-tax in the case of eligible EVs). As a result, your novated lease payments will be GST-free, and because they are considered reimbursable expenses under FBT rules, they will reduce your income tax payable. For quality novated lease electric car, check this out.
Additionally, as the EV industry evolves each year, you’ll get access to the latest available technology – including improved range and charging times. It starkly contrasts traditional vehicle owners stuck with whatever model they purchase.
The fact that fewer components are involved in an electric car also means there is less chance for mechanical complications – especially as many petrol car problems, like the starter motor or fuel injection system, don’t exist. However, it’s worth noting that EVs still have tyres that occasionally need replacing.
Getting an EV on a novated lease also makes it more affordable to switch to a more environmentally friendly way of getting around. The team at Maxxia are experts in novated leasing and can work with you to find an EV that suits your budget. Contact us today to learn more and start saving.
Less Chance of Complications
Electric vehicles have fewer moving parts than petrol or diesel cars and therefore don’t break down as quickly. They also need servicing less often and have a more straightforward exhaust system that won’t deteriorate over time. Your novated lease provider will be able to get you wholesale (fleet) pricing on parts and labour, which could save you even more.
With the government’s new Electric Vehicle Fringe Benefits Tax exemption, it’s never been a better time to switch to an electric car on a novated lease. According to the novated leasing company Inside Edge, employees can save up to $6,800 annually on their EVs. It is because all the payments you make on your EV via your novated lease are deducted from your pre-tax salary, effectively reducing your taxable income.