Novated Lease Electric Car: Novated Lease Electric Vehicle
An Electric vehicle can be a fantastic choice for many drivers. However, the price barrier can deter people from making the switch.
Novated leasing is one way to help overcome this hurdle. This arrangement allows employees to salary sacrifice a car using a mix of pre- and post-tax income. It removes the Fringe Benefits Tax (FBT) cost on eligible electric vehicles that are first held and used after 1 July 2022. For more information about the novated lease electric vehicle benefits, check this out.
Save Money on Your Taxes
If you’ve been thinking about switching to an electric vehicle but worry that it won’t be affordable, a novated lease can help. This type of salary packaging allows you to pay for your car and related expenses using pre-tax income, which can significantly reduce your taxable income.
It makes EVs much more accessible than they are for most buyers who would otherwise purchase them with cash or a traditional car loan. And because EVs typically cost less to run than comparable petrol-powered vehicles, you could be making substantial savings on fuel costs.
Plus, the fact that EVs don’t require the same level of maintenance as gas-powered vehicles can further cut your ongoing costs. Then, there are the potential energy efficiency benefits that come with EVs — including reduced electricity bills and the ability to put energy back into your home or the grid (depending on your specific model).
All these advantages can add up to considerable savings in the long run. And with the federal government currently waiving Fringe Benefits Tax on eligible EVs, now is a great time to consider switching to an electric vehicle.
Enjoy the Benefits of Owning a Car
Having a car allows you to travel where and when you want. It’s also a great way to transport large items, such as furniture or equipment for work. Cars are also easier to use than public transport, as you don’t have to worry about scheduling and wait times.
Novated leasing is a popular option for employees, enabling you to get an electric vehicle without paying the total price outright. It is because your vehicle’s finance, running costs and maintenance are all paid for by your employer as part of a salary package. It saves you money on taxes and allows you to drive a new car sooner.
Get the Vehicle You Want
When you take out a novated lease on an electric vehicle, you can choose from a broader range of vehicles than if you were buying one. It is because EVs typically cost less than traditional petrol cars, which means there are more options to suit your tastes.
In addition, you can also benefit from a reduced price on servicing and tyres for your EV. It is because EVs have fewer moving parts and don’t suffer from the same problems many petrol cars experience as they age. Plus, the battery packs of newer EV models can put electricity back into the grid, which will help reduce Australia’s imported fuel bill and support a clean energy future.
If you want to switch to an environmentally friendly car, an EV on a novated lease is worth considering. We can also help you find a hybrid vehicle if you aren’t ready to commit to a completely electric vehicle.
In addition to the FBT tax exemption, many EVs are eligible for a $7,500 EV purchase credit. It is a significant saving on the price of an EV and is another reason you should consider an EV-novated lease.
While EV prices have a long way to go before they are competitive with petrol vehicles, research commissioned by Novated Lease Australia found that 46% of Australians would consider switching to an EV in a novated leasing arrangement. Younger Australians are particularly keen to take advantage of the benefits of EVs with novated leasing as they tend to be cost-conscious and want to get behind the wheel of the latest technologies. For more information about the novated lease electric vehicle benefits, check this out.
