TAX INCENTIVE
The Electric Discount
There’s never been a better time to lease an Electric 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.
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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
Best Value
+$12,314
+$33,992
Tesla & BYD are the most popular electric cars right now
EVs are the fastest growing vehicle segment, especially in Novated Leases. Check out some of the following:
- Tesla Model 3 (sedan)
- Tesla Model Y (full size SUV)
- Mercedes-Benz EQA (mid-size SUV)
- BMW iX1 (small-size SUV)
- BMW iX3 (mid-size SUV)
- BMW i4 (sedan)
- Polestar 2 (sedan)
- Polestar 4 (SUV sedan cross)
- Cupra Born (Hatch)
- Cupra Leon (hatch)
- Cupra Formentor (Small-size SUV)
- BYD Sea Lion (full-size SUV)
- BYD Atto 3 (mid-size SUV)
- BYD Seal (Sedan)
- BYD Dolphin (Hatch)
- Hyundai Kona Electric (small SUV)
- Hyundai Ioniq 5 (mid-size SUV)
- Hyundai Ioniq 6 (sedan)
- Kia Niro (small SUV)
- Kia EV5 (mid-size SUV)
- Kia EV6 (mid-size SUV)
- Kia EV9 (full-size SUV)
Common novated lease questions
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