If you’re considering switching to an electric vehicle, a novated lease electric vehicle could be the way to go. This form of salary packaging allows you to pay for your new car and its running costs from your pre-tax salary, reducing your taxable income and accessing thousands of dollars in savings.
Save Money on Your Taxes
Buying or leasing a new electric vehicle through a novated lease is one of the best ways to save money on your taxes. It is because you’ll be able to claim the cost of electricity, which is typically less expensive than petrol.
You can also use the federal tax credit of up to $7,500 for zero-emission vehicles. This credit is designed to help drive the uptake of EVs and can make them more affordable than ever before.
A novated lease is also a great way to save money on your running costs, much lower than an outright purchase or car loan. For example, if you buy a 2023 Tesla Model 3 through a novated lease because you can expect to pay only 45% more on your car loan than if you paid cash for the vehicle outright.
On top of that, you can save up to 47% on the Fringe Benefits Tax (FBT) that applies to most other cars. It makes a novated lease an even more attractive option for employees and businesses.
Get a Brand New EV
If you want a brand-new EV but are not ready to fully commit to buying, leasing is a great way to get one. Leasing lets you try out an EV without having to put a significant down payment on it, and if you decide you don’t like it, you can return it at the end of the lease.
Electric cars also create fewer greenhouse gas emissions than gas-powered vehicles. And they’re quiet and easy to drive.
But the price of a new EV can be steep, significantly, when it depreciates so quickly. That’s why novated lease electric vehicle and other tax breaks make them so attractive for many people.
Earlier this year, the Albanese government passed a bill that exempts eligible electric vehicles from Fringe Benefits Tax, which makes them much more affordable for Australian families. It’s a great way to save money on your next EV, and it’s now even more accessible than ever to find a great deal.
Enjoy the Benefits of Owning a Car
Owning a car is a great way to reduce transport costs. By holding a vehicle, you can save money on several things, such as fuel, insurance, maintenance, and replacement tyres.
Owning your car also gives you independence. It is particularly important for people who are living with disabilities or who are unable to use public transport, as it can be difficult to travel without a car.
In addition to saving you money, owning a car can help you limit your carbon footprint. According to the United States Environmental Protection Agency, transportation is responsible for 27 per cent of greenhouse gas emissions.
Moreover, owning your vehicle can save you time and energy, as you don’t have to wait for the bus or train. It also ensures that you arrive at work on time.
Get Started Today
If you’re thinking about getting a new EV, there’s one way to do it that could save you thousands in the long run. A novated lease on an electric vehicle offers tax savings and GST relief, making driving an EV a lot more affordable.
With a novated lease, you can spread the cost of your new EV over an extended period and get a great deal on running costs like rego, comp insurance and servicing. You’ll also be able to claim the costs of electricity used.
It is a fantastic opportunity to drive a new, low-emission car and simultaneously help the planet. And now, with the introduction of the Australian Government’s ‘Electric Car Discount’ policy, you can enjoy a tax break on all eligible EVs and PHEVs, saving you thousands on a novated lease.