Time to go electric?
Novated leasing makes it affordable
Drive your electric car the smart way, with a novated lease. With EVs growing in popularity in Australia, you can save big by combining your dream electric car and the benefits of a novated lease. It’s easier (and cheaper) than ever to go environmentally friendly with your new vehicle.
With Novated Choice, you can explore your EV options with novated leasing as your finance plan. Our team will guide you through your options, so you know exactly how good a deal you’re getting.
For more information, contact us on 1300 050 550.
ELECTRIC VS PETROL
How much could you save on a novated lease electric vehicle?
The comparison is both based on an annual distance travelled of 15,000kms and a 5 year lease term.
NOVATED LEASE VS A CAR LOAN
Thousands of dollars off the cost of an EV
As part of the 2022 government tax exemption, there’s now no fringe benefits tax for eligible novated lease electric cars costing less than $89,332. This can make electric vehicles as cheap to lease as a regular petrol or diesel car. Not only does this save you money upfront, but you recoup the ongoing benefit of not having to buy petrol once your electric vehicle is on the road.
What’s more, if you’re one of the many clever people now choosing the novated lease vehicle option you get the added benefit of reducing your taxable income which can mean you make big savings at tax time.
If the rising cost of fuel is beginning to pinch and you want to take advantage of the awesome electric vehicle tax exemptions, it’s never been a better time to switch to a novated lease electric car.
Electric Cars X Novated Leasing
In simple terms, a novated lease is an agreement made between an employee, an employer and the financier. All managed by Novated Choice. It’s a financing option for your new vehicle where the payments you make on your car are bundled into one regular payment. This payment is made up of:
Fuel/ Charging costs
- Insurance
- Registration
- Maintenance Costs
- Tyres
- Lease payments
This payment is deducted from your pre-tax salary. This lowers your taxable income for the year, so you pay less tax.
Novated leasing is becoming the go-to choice for many Australians. New government policy states that some electric vehicles are exempt from Fringe Benefits Tax (FBT) when financed with a novated lease. So, not only are you saving money on your taxable income, but you’re receiving a major tax incentive when you finance your electric car with a novated lease.
It might sound complicated, but the truth is, Novated Choice will help you navigate the entire process so you can maximise your savings and make the right choice for your lifestyle.
How The FBT Exemption Works
The exemption makes driving an EV significantly cheaper than petrol cars. It allows for all the payments you make towards your electric car to come from your pre-tax salary and eliminates the FBT cost, which is applied to most novated leases.
For your electric car to be eligible for the FBT exemption, it needs to be classed as:
For your electric car to be eligible for the FBT exemption, it needs to be classed as:
- A zero- or low-emission vehicle.
- Having been purchased on or after 1 July 2022.
- Below the luxury car tax threshold for fuel-efficient vehicles.
E-VEHICLE + NOVATED LEASE
Benefits of Driving an Electric Car
Aside from the tax savings, driving an electric car has many everyday benefits, such as:
Cheaper Running Costs
With electric cars, you no longer need to worry about making those costly pit stops at petrol stations. With electric charging stations both at home and on the road for convenience, you’ll save money on fuel costs. With a novated lease, your at-home charging costs can also be bundled onto your pre-tax deductions.
Reduced Maintenance
As EVs are entirely electric and have fewer moving parts, this means less maintenance needs to be done on car parts. You no longer need to worry about oil changes and mechanical complications.
Improved Driving Experience
It’s no secret that electric cars are far smoother and quieter than petrol cars. With instant torque, its operation is silent and uses the latest technology to ensure an optimal driving experience for drivers. No more sudden breaks and jolts when you’re driving.
Environmentally Friendly
With zero or low tailpipe emissions, electric cars produce fewer harmful pollutants to the environment. They are also more energy efficient, so the impact on the environment is more positive.
How to Get Your EV Leased with Novated Choice
At Novated Choice, we’re committed to being a concierge service. So, we’ll handle everything from start to finish. All you need to focus on is driving your new car! But how do you get started with us?
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1
Choose Your Dream Car
Choose from an EV from our range that suits your vision and lifestyle.
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2
Paperwork You Don’t Need To Do
We’ll calculate your savings and the details of your finance agreement, which we’ll complete with your employer.
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3
Get On The Road
With all your costs bundled to be deducted from your pre-tax salary and the agreement in place, you can start driving your dream car.
GET IN TOUCH
Drive smarter, save more. Get started today!
Drive smarter, save more. Get started today!
Frequently asked questions
Yes you can, not only do you get all the other benefits of a novated lease such as saving the GST on the purchase price of the car, under the government’s EV discount, your electric car will not attract fringe benefits tax which means there is not post tax payment required. This means the whole novated lease payment is made from your pre-tax salary, which means you could be paying less tax.
Not only do you get all the other benefits of a novated lease such as saving the GST on the purchase price of the car and packaging the running costs, under the government’s EV discount, your electric car will not attract fringe benefits tax, meaning there is not post tax payment required. This means the whole novated lease is made from your pre-tax salary, which means you could be paying less tax.
All full electric and plug in hybrid cars are eligible for the discount, as long as the value of the car is below the Luxury Car Tax (LCT) threshold for fuel efficient vehicles at the time it is first sold (brand new).
You can only include the charger if it is included in the cost of the car. The tax rules at the moment will not allow you to package third party charges that are bought separately.
Yes you can, for full electric cars only. You can choose to either claim 4.20 per kilometre or if charging at a charging station you keep the receipt and log the claim in your customer portal.
Note: you can only choose to use one or the other method during an FBT year the rules do not allow for a combination.
All full electric and plug in hybrid cars are eligible for the discount, as long as the value of the car is below the Luxury Car Tax (LCT) threshold for fuel efficient vehicles at the time it is first sold (brand new).
