Novated leasing is one of the most cost-effective ways to finance a personal vehicle, and it’s getting even better thanks to the government’s decision to remove the Fringe Benefits Tax (FBT) on electric vehicles valued under $84,916 from 1 July 2022.

An electric vehicle (EV) is a great choice for anyone wanting to reduce their carbon footprint or save money on running expenses. Unfortunately, many Australians still struggle to get their hands on one, making it difficult to know where to begin.

Save Money

Novated lease electric car Australia offers a convenient way to drive an eco-friendly vehicle without the financial strain. Usually, carmakers offer leasing specials as an incentive to make the cost of an EV more manageable, plus you may be eligible for cash rebates from government agencies and other sources.

Additionally, the technology behind electric vehicles is constantly developing, and new models come out regularly. That means you may want to delay investing in an EV today only to discover it’s no longer a suitable choice a few years later.

Autonomy, a startup founded by Richard Hein, is trying to solve this problem by offering electric vehicles as monthly leases. For six months, customers can rent an EV for only the cost of gas and then upgrade or return it at the end of their contract.

This approach is ideal for testing an EV before determining if it suits you. Automakers constantly release new EV models, so you’re never stuck with outdated stock when upgrading your fleet.

Furthermore, novated lease electric car Australia can save you on taxes since all the finance repayments and running costs are deducted from pre-tax salary through salary packaging. It means less taxation and GST, leaving more funds in your pocket when paying for fuel or servicing.

Employers can provide their employees with a fully maintained electric vehicle through a novated lease. Not only will this save the environment, but it will also save them money in the long run – saving both their wallets and the environment!

Recently, the Australian government introduced the Electric Car Discount policy, which waives Fringe Benefits Tax for eligible electric, plug-in hybrid and hydrogen-powered vehicles with an RRP of $84,916 or below. It means EVs on a novated lease can be tax-free – saving employers and employees thousands each year in savings.

Save the Environment

Electric vehicles (EVs), unlike petrol cars that rely on fossil fuels to run, are zero-emission vehicles that can help save the environment in several ways. From reducing emissions during recharge to how they’re sourced, EVs represent a step in the right direction towards creating a cleaner and more sustainable future.

It’s essential to remember that electric vehicles (EVs) may be more environmentally friendly but still need to be driven. That is why novated leases offer great value for those seeking to save money and help the environment simultaneously.

Get on the Road Sooner

One of the quickest and most convenient ways to drive a new electric vehicle is by leasing it. Leasing offers lower monthly payments and allows you to trade in your car once the lease ends.

Novated leasing allows your employer to cover the repayments and other associated costs of running an electric vehicle on your behalf, saving you time and stress so that you can focus on enjoying driving your brand-new electric vehicle!

A novated lease can be an attractive option for those who want to switch their car from gas-powered to electric but lack the money for a full purchase. It also serves as an effective solution for people transitioning from one gas-powered vehicle to an electric one or vice versa.

Another advantage of a novated lease electric car Australia is that it can reduce income taxes. It is because the leasing company uses pre-tax and take-home pay to fund repayments, plus any GST payable is removed from the vehicle cost.

The government has also introduced tax incentives to make owning an electric car more appealing. Thanks to Labour’s electric car discount policy, many of today’s electric vehicles are exempt from the 47% Fringe Benefits Tax (FBT).

It is great news for EV owners, as they can afford a more cost-effective electric car. Furthermore, this marks the first time the Federal government has offered a cash rebate on purchasing an all-electric vehicle.