You may have noticed many more electric vehicles on the road and at the servo recently. This is partly due to changes in tax laws that make eligible EVs under $84,916 100% FBT exempt when salary is packaged with a novated lease. For a quality EV novated lease calculator, check this out.
This makes an EV cheaper than ever before! So, why not go electric?
Calculate Your Take-Home Pay
EVs attract less luxury car tax than petrol cars and may be eligible for government incentives to reduce their purchase price further. When you salary package an EV through Maxxia, your lease payments and running costs are deducted from your pre-tax income each pay cycle, helping you to maximise your tax savings.
With advanced battery technology and growing investment in charging networks, range anxiety is becoming a thing of the past. EVs also cost less to run than petrol vehicles and are much quieter to drive.
With the federal Government recently announcing that EVs will be exempt from Fringe Benefits Tax (FBT) – further encouraging their take-up with novated leasing – there’s never been a better time to consider an electric vehicle.
Calculate Your Running Costs
Initially, novated leases can be complex to get your head around – they’re a car-purchasing arrangement with your employer as the middleman. However, considering that a novated lease can save you thousands on the price of your new vehicle, it’s worth looking into. or a quality EV novated lease calculator, check this out.
EVs are also more energy efficient than traditional cars, making for an even more cost-effective option. Some EVs can put electricity back into the grid (depending on the model), saving you money on your power bills.
Another bonus is that new EVs and plug-in hybrid electric vehicles are eligible for an FBT exemption introduced by the Australian Government in late 2022. This means you can salary package an EV without paying the 47 per cent fringe benefits tax that would usually apply. This makes EVs an extremely compelling option via a novated lease.
Calculate Your Tax Savings
There are significant tax benefits to leasing an EV through a novated lease or company operating lease. Renting an EV through a limited company (or operating lease) allows you to set the car’s monthly cost against the company’s profits, reducing your corporation tax.
This translates to significantly higher savings than you can achieve when leasing a vehicle personally. A P11D form must be lodged yearly with the tax office to report this benefit-in-kind.
Alternatively, a fully maintained novated lease can remove the hassle of reporting this benefit-in-kind by deducting the monthly lease rental and operating costs directly from your pre-tax salary. You will also avoid the five per cent import duty on petrol and electricity vehicles imposed by the Australian Customs and Border Protection Service (ACBSL).
Calculate Your Lease Term
A novated lease is the smart way to buy an eligible electric or plug-in hybrid vehicle. It allows employees to sacrifice salary for a vehicle purchase and running costs such as fuel, servicing, tyres, registration, and car insurance from their pre-tax income, effectively paying for the vehicle in instalments. or a quality EV novated lease calculator, check this out.
Our novated lease calculator clearly shows all the fees involved, so you know exactly what you’re saving. We include the lease payments and running costs to see your total savings.
EVs are much cheaper to run than traditional cars, and they can save you even more with government incentives and reduced import tariffs. Plus, they’re quieter and have the potential to put electricity back into the grid, making it greener for everyone.
Compared with a regular car loan, the easily novated lease calculator makes it easier to work out the benefits of an EV. It also helps you find the right vehicle for you and your lifestyle.
EV Novated Lease Calculator
We’re seeing many more EVs on our roads and at our servos lately. Why is that?
A novated lease (salary packaging) lets you put your running costs into your pre-tax income, including loan/interest payments and insurance.