With the new EV Discount policy providing FBT exemption and a 5% reduction in import tariffs, it’s easier to take advantage of an affordable EV through a novated lease.
A novated lease allows you to pay for your car and its running costs from pre-tax salary (car salary sacrifice). It’s also tax-deductible. For more EV novated lease info, click here.
Mileage Limits
Most companies have an annual mileage limit of 15,000 km when leasing an EV. Exceeding these limits can be expensive, so it’s essential to consider how far you will travel each year when choosing an EV lease. An unlimited mileage lease may be a better option if you travel long distances.
Novated leases offer employees a great way to buy their dream EV while saving on car finance and running costs. The lease payments and vehicle running expenses are deducted from your pre-tax salary each pay cycle (also known as salary packaging). It reduces your taxable income, potentially saving thousands of dollars each year.
The EV-novated lease market is increasing thanks to new technology and improved driving ranges. With no Fringe Benefits Tax (FBT) payable on eligible EVs and PHEVs, they’re becoming an excellent choice for businesses looking to demonstrate innovation and sustainability.
Excess Mileage Fees
A novated lease is an effective way to switch to an EV. It reduces taxable income, packages all car costs into one regular payment, and includes GST-free lease payments. However, it’s essential to consider all fees associated with a novated lease, including mileage limits and overage charges. You should also note that novated leases are binding contracts for the entire lease term, and it can be difficult or expensive to get out of a lease if your financial situation changes. For more EV novated lease info, click here.
With increasing petrol prices, it makes sense to save money on fuel with an EV. Take advantage of the FBT exemption available on eligible EVs, as this can make the vehicle even more affordable.
Charging Stations
Electric vehicle charging stations are a necessary investment for businesses as the EV revolution accelerates. These facilities provide a valuable perk to attract and retain employees and generate additional revenue through charging fees.
Novated leases can be used to finance EVs and cover the costs of their operation, including fuel, maintenance, and insurance. They also allow drivers to deduct repayments from their pre-tax income, making them a convenient and affordable option for Australian motorists. Furthermore, EVs are more fuel-efficient and have lower emissions than traditional vehicles. As a result, they can save you money by reducing your electricity bills. In addition, they may be eligible for government incentives in your state or territory.
Lease Agreements
You may have noticed more electric vehicles on the roads or at your local servo recently. It has been driven partly by the Federal Government’s incentives and because eligible EVs have lower running costs than traditional petrol/diesel vehicles. For more EV novated lease info, click here.
The best way to get an EV is via a novated lease. Novated leasing allows Australian employees to salary package vehicle running costs (car payment, fuel/electricity, registration, tyres and insurance) from their pre-tax income, saving them up to 60%.
As one of Australia’s leading novated leasing providers, Maxxia has seen increased demand for EV novated leases. They can help you find an eligible EV at a potentially significant price and make switching to an EV easier.
In Australia, the cost of EVs is still higher than petrol and diesel cars – but a novated lease can help make them more affordable. The FBT EV exemption, which removes the Fringe Benefits Tax for all new battery electric and plug-in hybrid electric vehicles first used on or after July 1 2022, makes them cheaper to finance through a novated lease than other car finance options like car loans.