An affordable and sustainable form of transport just became more appealing with a recent policy change removing the Fringe Benefits Tax (FBT) on electric vehicles with purchase prices under $84,916. It can make salary packaging an EV through their employer much simpler.

Affordability

Now is an opportune time to consider switching to an electric vehicle (EV), though you might need assistance financing it. Novated lease electric vehicle free quotation could provide the ideal solution.

An EV novated lease uses your pre-tax income and eliminates GST payments to make repayments more affordable than car loans with interest. Plus, considering EVs tend to require lower maintenance costs than petrol cars, owning one may be cheaper overall.

An electric vehicle novated lease can also offer access to cutting-edge technologies, giving you greater trade-in value should you decide to sell or upgrade later.

Flexibility

If you’re considering the switch to electric vehicle ownership, novated leasing could be the way forward. It can save you money and lower taxes, but additional advantages exist. With so many EV options now available in Australia, including Wagonex, DriveElectric and EV Chargers available on the market like, Wagonex provides flexible subscriptions whereby users can rent an EV as long as necessary, while DriveElectric provides access to numerous Nissan Leaf, Tesla Model 3 and VW E-Transporters vehicles available for rental with DriveElectric.

Electric cars (EVs) feature fewer moving parts than petrol or diesel cars, meaning less maintenance needs to be performed over time and money saved on servicing fees. Furthermore, public charging stations provide quick recharge services during longer trips; any charges you incur can be paid through salary packaging services to save even more.

Tax benefits

Leasing an electric car is significantly less costly than buying, with significant savings possible when it comes to Fringe Benefits Tax (FBT). Thanks to a new law introduced in 2023 that eliminates FBT for eligible electric, plug-in hybrid and hydrogen fuel cell vehicles leased under novated lease agreements – providing employees with an incentive to opt for such cars under an employee benefits package and helping drive demand in Australia’s market.

FBT EV exemption makes owning and driving an electric vehicle even more affordable for employees by bundling all finance and running costs (such as electricity, registration, insurance and servicing) into one monthly pre-tax payment. Furthermore, GST on EVs is exempted, further extending your savings potential.

EV FBT exemption applies to new battery electric and plug-in hybrid cars first used after 1 July 2022 that fall below the Luxury Car Tax threshold of $84,916. While manufacturers typically price these cars below this value threshold, any resale profits beyond this value will attract LCT when sold on.

Though electric vehicles (EVs) are considerably cheaper than their gasoline-fuelled counterparts, they still need charging regularly if you plan to go on long road trips. In helping with this task, there are now free public charging stations across the nat, making a cake this easier than ever before.

Sustainability

Novated lease electric vehicle free quotation produces no exhaust emissions, and their batteries can be recycled after they wear out – meaning that their environmental impact is much reduced compared to petrol or diesel vehicles that release harmful carbon monoxide and nitrogen oxide emissions.

Government legislation recently unveiled by the government has made it simpler for employees to obtain electric vehicles via novated lease. Employees can save thousands annually on fringe benefits tax (FBT) and import tariffs when leasing an EV below the luxury car tax threshold of $84,916 or below.

Novated leases can also help ease the initial expenses of purchasing an electric vehicle (EV), including home charging station installation if required. Furthermore, you’ll be able to claim electricity usage expenses as an expense, thus cutting operating costs and emissions significantly.

SG Fleet can offer you a novated lease for any fully electric or hybrid vehicle available to help get your journey toward a greener future underway sooner. Our team can even find hybrid options if that is more appropriate to your situation. If you’re curious, speak with one of our staff today, who will walk you through the process and give more details on how an EV novated lease might work for you!