TAX INCENTIVE
The Electric Discount
There’s never been a better time to lease an Elecrtic Vehicle - Now 100% Fringe Benefits Tax free.
Thanks to the Australian Government’s Fringe Benefits Tax (FBT) exemption for eligible electric vehicles, leasing an EV is now more affordable than ever. This exemption means you’ll avoid paying FBT on your EV lease, resulting in significant savings. This means that ALL payments on your Electric Vehicle Novated Lease could be paid for with pre-tax income
The discounts will apply to the following EVs:
- New EVs purchased after 1 July 2022
- Second-hand EVs first registered after 1 July 2022
- Exempt vehicles up to the luxury car tax threshold (currently $91,387)
- Plug-in hybrid EVs(only available up to 1 April 2025, with exemptions being applied for existing leases until they expire)
BREAKDOWN
Can novated leasing be cheaper than a car loan or cash?
Yes. By not using your savings or taking out a car loan, you could save thousands over the life of the lease.
View infographic below, to learn more about how novated leasing compares to other forms of finance.
With Novated Car Lease
With cash
With car loan
Car price (Tesla Model Y)
$60,872
$60,872
$60,872
GST savings on purchase
-$5,245
$0
$0
Weekly cost
$201
(incl. running costs)
$78
$395
Weekly income tax and GST savings
$125
$0
$0
Total tax savings over 5 years
$32,413
$0
$0
Total cost of vehicle (including residual)
$68,708
$81,022
$102,700
Cost difference
+$12,314
+$33,992
BREAKDOWN
How much could you save with a novated lease?
The table below shows estimated novated lease savings on some of Australia’s top-selling cars.
These examples are based on a driver in NSW with an annual pre-tax salary of $120,000 travelling 15,000km/year. See your own estimated savings by getting a fast, personalised quote.
Car model
Regular Driveaway price
Upfront novated lease GST saving
Total weekly cost
Running costs incl. in weekly costs (with GST saving)
Total tax saving during lease
Tesla Model Y (RWD)
$68,314
($6,109)
$220
- Electricity: $11.79
- Servicing & tyres: $9.53
- Comprehensive insurance: $30.77
- Registration & CTP: $16.92
$39,198
Tesla Model 3 (RWD)
$68,314
($6,109)
$220
- Electricity: $11.79
- Servicing & tyres: $9.53
- Comprehensive insurance: $30.77
- Registration & CTP: $16.92
$39,198
Ford Ranger (XLT 4X4 Double Cab)
$68,314
($6,109)
$220
- Electricity: $11.79
- Servicing & tyres: $9.53
- Comprehensive insurance: $30.77
- Registration & CTP: $16.92
$39,198
The recent “Electric Car Discount” policy means that Fringe Benefit Tax exemption is applied across Tesla
models up to the Luxury Car Tax threshold ($89,332 for the 2023/24 financial year). The FBT exemption also
applies to most vehicle running costs covered by a novated lease.
Tesla savings with a novated lease
The FBT exemption will make a significant difference to the overall cost of your Tesla and paying for running costs.
Here’s an example cost comparison for a 2023 Tesla Model 3 (including running costs), financed with a novated
lease, a car loan and paid for outright using cash. The calculation is based on a 5-year term and factors in the
fringe benefits tax exemption, plus the GST savings on the vehicle purchase and running costs available with a
novated lease.
PRICING
TESLA MODEL
The table below shows estimated novated lease savings on some of Australia’s top-selling cars.
These examples are based on a driver in NSW with an annual pre-tax salary of $120,000 travelling 15,000km/year. See your own estimated savings by getting a fast, personalised quote.
Variants
Price (excl. On Road Costs)
Tesla Model Y (RWD)
$61,900
Tesla Model 3 (RWD)
$71,900
Ford Ranger (XLT 4X4 Double Cab)
$71,900
PRICING
TESLA MODEL
The table below shows estimated novated lease savings on some of Australia’s top-selling cars.
These examples are based on a driver in NSW with an annual pre-tax salary of $120,000 travelling 15,000km/year. See your own estimated savings by getting a fast, personalised quote.
Variants
ELECTRIC
Body Type
1 SP AUTOMATIC
Transmission
4D SEDAN
Variants
REAR-WHEEL DRIVE, LONG RANGE
Tesla have the most popular electric cars being novated in 2023
The Tesla Model 3 is the one EV that stands as the clear Australian favourite, far outpacing its competitors sales.
- TESLA MODEL 3
- TESLA MODEL Y
- BYD Atto 3
- Mercedes-Benz EQA
- Mercedes-Benz EQC
- Mercedes-Benz EQV
- Hyundai Kona Electric
- Hyundai loniq 5
- Kia EV6
- Volvo XC40 Recharge Pure Electric
- Nissan Leaf
- MG ZS EV
Quick-fire novated lease questions
Learn more about how a novated lease works from start to finish. Our expert consultants can also answer any questions, so you can sign up with confidence.
Understand more about how a novated lease works end to end. Our professional consultants can help you with all your queries.
Understand more about how a novated lease works end to end. Our professional consultants can help you with all your queries.
Understand more about how a novated lease works end to end. Our professional consultants can help you with all your queries.
Understand more about how a novated lease works end to end. Our professional consultants can help you with all your queries.