EVs are incredibly reliable and have fewer moving parts than petrol cars, requiring less maintenance. It is also reflected in their lower running costs and the cost of replacing tyres.
With a novated lease company for electric car, your vehicle and its running costs are deducted from your pre-tax salary (or utterly tax-free in the case of eligible electric vehicles). It allows you to save on income tax as well as GST savings.
Save Money on Your Taxes
Electric cars are trendy, and it’s easy to see why. They’re better for the environment, and their running costs are much lower than traditional petrol or diesel vehicles, making them an excellent choice for people on a budget.
A novated lease is an excellent option for anyone looking to get behind the wheel of an EV. Novated leases offer several benefits, including FBT exemptions and the removal of LCT on eligible electric vehicles. It can save you up to 45% on car and running costs, saving you thousands before you even step inside your new EV.
In addition, you can sacrifice salary to fund your novated lease payments, reducing your taxable income further. It is often referred to as ‘salary packaging’ and can help you save up to 60% on the cost of your new EV.
Additionally, EVs have few moving parts, so they are generally less expensive to maintain than their petrol or diesel counterparts. It can further reduce your running costs, helping you save more on electricity bills. Finally, some newer EVs can return electricity to the grid, lowering your energy bill and helping Australia reduce its dependence on imported fuels. It makes novated leasing an excellent option for anyone looking to do their bit for the environment and save money simultaneously.
Enjoy All the Conveniences of Owning a Car
Having your vehicle has numerous benefits, including freedom and independence. You can choose where to go when you want and not have to rely on other people or public transport schedules. Also, a car is more versatile than a bicycle or bus if you need to transport something more significant.
The policy aims to encourage EV adoption and reduce carbon emissions. Currently, Australia lags behind many comparable nations in terms of EV and plug-in hybrid adoption. The FBT exemption will help EVs compete with petrol vehicles on price and performance, hopefully driving up sales and adoption.
This FBT exemption is available to all novated leases, including an eligible electric vehicle first held and used on or after July 1, 2022. It includes both battery electric vehicles and plug-in hybrid electric vehicles. The exemption will apply until April 1, 2025, when all novated leases must be renegotiated to exclude or include the car.
As a leading novated lease company for electric car providers, Maxxia understands every aspect of the FBT EV exemption and the current market for electric cars. We can help you decide if a novated lease is right for you and explain how it works.
Get a New EV Today
If you’re considering switching to an electric car, it’s time to take advantage of the government incentives and tax benefits offered through a novated lease. This option saves you on fuel, registration, insurance and maintenance costs while reducing your taxable income.
These savings can make EVs more affordable to purchase and run and also help reduce the overall cost of ownership over the long term. It is particularly true if you buy your EV with a fully maintained novated lease, including all associated running costs like comprehensive car insurance, servicing and registration renewals. The novated lease will also remove payable GST from the total cost of your vehicle, further reducing your overall EV price.
It’s not hard to see why more and more people are switching to EVs. They offer a quieter, smoother and more convenient drive than traditional petrol vehicles. Plus, newer EV models can potentially put electricity back into the grid, helping to reduce Australia’s dependence on imported energy and cut our carbon emissions.