Employers who choose to salary package an electric vehicle can take advantage of the EV Discount policy to save on Fringe Benefits Tax and GST. Running costs such as registration, maintenance and tyre replacements can also be claimed back as expenses.
The new policy exempts fuel-efficient electric vehicles that fall below the Luxury Car Tax threshold ($84,916 for 2022-23) from FBT, as well as import tariffs – meaning novated lease drivers could save thousands annually!
Save Money on Tax
NovatedEV novated lease electric car will cost less to run than traditional petrol or diesel vehicles due to lower electricity costs, but you could save even more by opting for a novated lease arrangement – providing one regular pre-tax payment each week that consolidates finance, operating costs, and insurance costs into one pre-tax payment and helping you budget its running costs and track savings on your tax returns.
Electric vehicles (EVs) allow owners to claim back the cost of electricity used to charge their vehicles at home or commercial charging stations, unlike gasoline cars which utilize fuel cards loaded with money for payment; an EV requires topping up at a station instead. As more commercial charging stations open across the country, charging up your EV is becoming an easy and accessible solution.
Due to the Treasury Laws Amendment (Electric Car Discount) Bill 2022, electric vehicles purchased after 1 July will become FBT exempt when provided under a novated lease arrangement, saving employees thousands each year when salary sacrificing an EV purchase price.
Though the upfront outlay for an electric vehicle (EV) may be higher than for traditional petrol or diesel vehicles, novated leases can help you quickly break even in terms of driving costs within several years. That’s because EVs require far fewer repairs and maintenance services as they don’t use complex mechanical parts like fuel injectors and radiators that may malfunction; instead they rely on electric motors which are much simpler and more reliable than their counterparts in conventional engines.
Maintaining an electric vehicle (EV) still requires ongoing upkeep; servicing and tire changes may need to be performed as with any car, however many of these costs are claimed through your novated lease as you would with any car; saving money in upkeep. Given its lower running costs and maintenance requirements compared with conventional petrol or diesel vehicles, young Australians seem more willing to opt for green novated lease options than previous generations.
Get on the Environmentally-Friendly Road Sooner
Electric vehicles (EVs) are the future of motoring, with manufacturers and governments worldwide setting targets to transition towards zero emissions vehicles. By leasing a NovatedEV novated lease electric car through Maxxia on a novated lease agreement, not only can you save money but contribute positively to the environment as most of its running costs will be covered and your tax bill reduced!
Electric cars feature fewer moving parts and are produced in an eco-friendly fashion than their petrol counterparts, leading to reduced operating costs and maintenance intervals – one can get serviced every 12 months or 15,000kms on average! Furthermore, manufacturing processes used for an EV also have reduced environmental impacts.
The government is doing their part to make electric vehicles even more appealing by exempting them from FBT through its Electric Vehicle Discount policy, making all EVs and PHEVs purchased after July 1st 2022 FBT free when used under novated leasing arrangements.
As a result, more Australians will be able to switch over to an electric vehicle via novated leasing agreements. Younger Australians in particular appear eager to adopt these vehicles with over half likely choosing an EV under such agreements compared with only 32% among those aged 51+.
Novated leasing an electric vehicle (EV) can be an ideal way to find your next vehicle, giving you access to a selection of models that meet both your budget and needs. Our team can assist in finding one suitable.
An EV is especially appealing when the cost of driving and recharging are significantly cheaper than with traditional fuel vehicles; fuel savings could amount to thousands over three years; you can also opt to buyout or trade-in your EV at the end of its term.
Are You Thinking About Novated Contracting an Electric Vehicle (EV)? Maxxia can create a tailored package just for you and take care of all of the paperwork involved! Contact Us Today To Get Started!
No Surprise Maintenance Costs
EVs feature fewer moving parts than petrol or diesel vehicles, meaning they are less likely to break down and require costly repairs. Furthermore, their lack of complex exhaust systems means carbon build-up won’t deteriorate them over time as quickly. While regular service visits and tire replacement costs should still be included in a novated lease contract agreement – eliminating unexpected maintenance bills upon lease termination.
NovatedEV novated lease electric car often come with a full warranty, meaning repairs or replacements will be covered by the vehicle manufacturer if anything should go wrong with your EV lease agreement. This gives you peace of mind knowing that should anything arise, your local dealer team will take great care in looking after it for you.
When considering switching to an electric car, we advise seeking independent tax, legal, and financial advice before making your final decision about how best to finance it. You should carefully consider all available financing solutions – taking into account potential impact on salary sacrifice plans as well as potential reportable fringe benefits tax (FBT).
Novated leasing is an agreement among an employee, their employer and a finance company to allow salary packaging of new cars while deducting all running costs such as registration, maintenance, tyres and fuel from pre-tax income.
Novated leasing can help you transition to a greener lifestyle faster. Our experts can assist in selecting an electric or hybrid vehicle to match your lifestyle and budget, as well as answering any queries.
Electric Vehicles (EVs) offer more environmental benefit than petrol or diesel-powered cars, but can still be expensive to run if you lack an affordable financing solution. A novated lease can make these more cost-effective options; further reducing fuel costs by charging it overnight on an inexpensive electricity tariff.
The Australian Government’s Electric Vehicle Discount policy exempts electric and plug-in hybrid vehicles from Fringe Benefits Tax, making them suitable for novated leasing. If you’re thinking about taking the green route with your next car purchase, contact Fleet Network now and learn how novated leasing could help make life greener for everyone involved!
No Fuel Card Needed
NovatedEV novated lease electric car can be an excellent way to reduce driving costs. Thanks to advances in battery technology and expanding charger networks, EVs are becoming increasingly affordable for all drivers – yet if you’re considering switching over, it is crucial that you understand their various running costs compared to traditional petrol vehicles.
Electric vehicles (EVs) tend to be cheaper to maintain, with electricity and maintenance expenses often being significantly lower than petrol cars. This is likely due to having less mechanical parts prone to breakdown and not needing the gas and oil that petrol cars do – however EVs still incur some expenses such as registration, tyres and maintenance that you can claim back through novated leasing arrangements, making EV ownership an economically sound decision.
Your electric vehicle (EV) also qualifies for tax relief as it does not use fuel; rather it requires charging via home charging stations or public chargers.
Your novated lease payments can help you claim all this through pre-tax income deductions each pay cycle and can provide significant tax savings on the cost of an electric vehicle (EV).
Switch to an electric car now – thanks to the government’s recent introduction of the Treasury Laws Amendment (Electric Vehicle Discount) Bill 2022! Novated leasing an EV or plug-in hybrid will exempt employees from Fringe Benefits Tax – making EV ownership even more cost effective!
RemServ has an affordable and stylish range of electric vehicles to meet every budget and lifestyle – our dedicated team can assist with finding your ideal novated lease option!
