Make the Switch to an Electric Vehicle (EV) With Novated Leasing

Now that the government offers a fringe benefits tax (FBT) exemption on eligible EVs leased under novated leasing arrangements, drivers can switch and save.

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EVs are more environmentally friendly than their petrol counterparts, and when used effectively, novated leasing can make them even more affordable to drive. By consolidating all your financing repayments and running costs into one regular pre-tax* payment every week across the year. Furthermore, your first year’s comprehensive car insurance can also be covered via this arrangement, making the renewal notice easier to find the money for renewal than having to find cash upfront!

As an added benefit, most electric cars fall below the Luxury Car Tax threshold of $84,916, meaning novated lease purchases could save thousands when made under this scheme. Repayments and operating costs are all combined into one monthly payment that lowers taxable income and could result in less tax overall being due.

To maximise savings when buying an electric vehicle, investigate whether any used models that qualify for the $7,500 federal credit are available at your dealer. It could save even more than its MSRP price; models like Polestar 2 or Tesla Model Y would likely be significantly cheaper than their conventional equivalents. For details, check for a novated lease electric vehicle free quotation.

Get on the Environmentally-Friendly Road Sooner

With governments globally encouraging lower emissions, demand for electric vehicles (EVs) has steadily increased. Though their costs still exceed comparable petrol cars, leasing an EV with a novated lease contract provides an efficient means of accessing these vehicles sooner. For details, check for a novated lease electric vehicle free quotation.

The Federal Government is also helping make electric vehicles more affordable with their Electrification Car Discount Bill, making all new EVs FBT Exempt until 1 July 2023 and saving employees thousands each year when using an EV on a novated lease agreement.

Electric and plug-in hybrid vehicles (PHEVs) boast lower carbon dioxide emissions than internal combustion engine cars (ICE), making EVs and PHEVs better for our environment. Furthermore, driving an EV is much more affordable; some drivers report spending approximately $10 less on full tanks than petrol cars when accounting for electricity and petrol prices.

Less Expensive Repairs

EVs require less maintenance than petrol cars, except for replacing their battery once every eight years or 240,000km. There are three types of EVs – Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs) and Hybrid Electric Vehicles (HEVs). They can even use renewable energy sources like solar or wind power for charging – further increasing their environmental friendliness.

EVs typically cost less per 100km when run on electricity. Furthermore, servicing costs are reduced as fewer moving parts and components need replacing less frequently in an EV.

With the Australian Government’s Electric Vehicle Discount and FBT Exemption scheme, going electric has never been more cost-effective. All EVs purchased after 1 July 2022 qualify as fringe benefits tax (FBT) exempt, saving employees thousands annually through novated leasing arrangements.

As an added perk, manufacturer-specific lease offers may be available for those looking to buy an electric vehicle but unsure about committing to long-term leasing contracts. Under purchase contracts, once their term has concluded, you would need to return it. At the same time, with a novated lease, there is often flexibility with extending or even trading in for another model – perfect for anyone considering taking on their first EV purchase! For details, check for a novated lease electric vehicle free quotation.

No Surprise Maintenance Costs

Electric vehicles (EVs) contain fewer moving parts than petrol cars, making them less likely to break down and cost less to repair. Furthermore, their exhaust systems do not wear out over time from carbon build-up.

But electric vehicles still require regular servicing and tyre maintenance like any other car, making novated leasing an EV the smart option to cover these costs through your monthly car repayments and avoid surprise out-of-pocket maintenance expenses when they arise.

Most novated lease contracts contain annual mileage limits to ensure drivers do not surpass a predetermined number of kilometres annually, exceeding which could incur substantial penalties. With Australia’s growing network of public charging stations available across Australia, topping up your EV is now easier than ever while out and about.