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Electric Vehicle Novated Lease

The Electric Vehicle market has just become much more affordable, as
the Electric Car Discount Bill 2022 has passed! The exemption from
paying Fringe Benefits Tax (FBT) on an eligible Electric Vehicle has made
their cost much more attainable to all.

EV Deals

It's here

The ‘Electric Car Discount Bill’ is now here!  The bill makes it cheaper to purchase a Plug-in Battery electric vehicle, Plug-in Hybrid vehicle and Hydrogen fuel cell vehicles.

We asked our CEO John Heinke, what he thinks of the bill and the benefits:

“What is absolutely fantastic about this strategy is that everyday Australians can now benefit by participating. The new legislation means your new Electric vehicle will be tax-free. All costs associated with your purchase will be tax-free!
Buying the vehicle, financing the vehicle and all running costs of the vehicle will be tax-free. The government has used the Australian taxation system to directly influence carbon emissions in a tangible way at a household level”.

Which vehicles are covered?

The exemption covers zero or low emission vehicles, with values below the luxury car tax threshold for fuel efficient cars (currently $89,332), being:

  1. Battery electric vehicles
  2. Hydrogen fuel cell electric vehicles
  3. Plug-in hybrid electric vehicles – if the car has an internal combustion engine, it will only qualify if it can be recharged by an off-vehicle power source- These cars are no longer to be exempt from FBT after 1st of April 2025 but pre existing arrangements can continue as FBT exempt until the end of the arrangement  Eg: If someone get a Plug in hybrid for 5 years from today- they can continue to be exempt till 24/11/2027

Second hand cars can qualify, but only if their first retail sale was on 1 July 2022 or later.

When the rules take effect

The exemption applies retrospectively from 1 July 2022, to cars first held and used by a person (i.e. any person) on 1 July 2022 or later. This is described as the first retail sale being on or after this date. Cars ordered prior to 1 July 2022 will qualify if they were not delivered until 1 July 2022 or later.

Compare your choices and take home more of your money

We’ve compared what you’ll save (and what you’ll pay) on a 4 year lease of a new Kia EV6 Air, $67,615 (exc GST). These calculations are based on an average salary of $95,000. You’ll see that even if you paid cash for the vehicle outright, a novated lease will save you money on such things as servicing, tyres and other running costs.

You can include nearly ALL of your running costs in the arrangement

Novated Leasing not only gives you a brand new car at a fantastic purchase price, but it also allows you to include many of the running costs in your pre-tax income.

  • Finance repayments
  • Servicing
  • Tyres
  • Insurance
  • Registration
  • Roadside assistance
  • Get fleet pricing on your vehicle
  • Save GST on the purchase price
  • Online salary packaging account balances

We’ve got brand new Electric Vehicles - from $163pw

Access to a wide range of brand new vehicles at fleet prices – so you don’t have to hunt around or negotiate with a car dealer (we even do all of the paperwork on your behalf).
Prices below are current Novated Lease prices, taking into account the Electric Car Discount Bill 2022.


Why buy an EV? Aren't they more expensive?

Currently yes, EVs are more expensive than typical I.C.E. vehicles.
With the new ‘Electric Car Discount Bill 2022’, the amount you save with an EV on a Novated Lease increases dramatically, and the prices drop significantly.

Do EV's cost more to run?

Absolutely not. If anything they’re much more economical.
To drive a petrol car 100kms, would cost approximately $20.81 where fuel is $2 a litre.
To drive a diesel car 100kms, would cost approximately $9.37 where fuel is $2 a litre.
To drive an EV 100kms, would cost approximately $4.50 of electricity. (peak vs offpeak costs vary), and if you have solar installed at home you’ll save even more!

EV’s are also much cheaper to service, and require much less frequent servicing as there’s nowhere near as many moving parts susceptible to breaking, and general wear and tear.

What about charging my EV? Can't it prove difficult?

While it’s been a slower start to getting charging stations available all around the country, they’re about to start popping up everywhere. Find your nearest public charging station here.

How far can I go on a single charge?

As battery technology continues to improve, so does the average range a new EV can travel on a single charge. You can easily find new EV’s that can travel up to 500kms. That is more than enough, considering most Australians live in metropolitan areas and travel an average of 30-40 kms in their daily journeys.

How safe are electric vehicles?

All electric vehicles must meet the same Australian car safety standards as other vehicles. Also, as the battery is located near to the ground, the cars centre of gravity is much lower, providing much better handling. You’re also not carrying around a tank full of petrol.

Are EV's REALLY better for the environment?

There are a few points to consider about EV’s and their green status:

  • EV’s don’t create exhaust pipe emissions, so they don’t cause fine particulate pollution or expel carbon dioxide/ monoxide etc. This reduces air pollution and improves the air quality for pedestrians and cyclists.
  • While they use electricity (mostly created by coal burning power stations) to be recharged, greener power sources are become more abundant. Research by the European Energy Agency found that, even with electricity generation, the carbon emissions of an electric car are around 17 – 30% lower than driving a petrol or diesel car.
  • The batteries in an EV are fully recyclable. As technology advances, the lifetime and efficiencies of EV batteries will improve even further.

How does the FBT exemption work for EV cars?

It is pretty much like leasing a car on 100% operating costs without the need to keep a log book. The total running costs of your car is deducted from your salary before tax which reduces your taxable income.

Do I get a rebate back from the government for purchasing an EV?

Rebates differ from state to state.

Queensland’s EV policies include:

  • a $10 million co-fund to support public charging infrastructure, in partnership with local government and industry
  • annual discount on vehicle registration
  • reduced stamp duty for EVs and hybrid vehicles
  • $3,000 rebate for zero-emission vehicles valued up to $58,000 (including GST) purchased from the 16 March 2022 onwards.

The Northern Territory Government has developed an EV strategy and implementation plan, which includes a range of actions over the next 5 years.

From 1 July 2022 to 30 June 2027, the NT Government will waive:

  • stamp duty fees for the sale of plug-in EVs up to $50,000 – providing a saving of up to $1,500
  • the registration fee when you register an EV – providing an annual $91 saving.

From 1 July 2022, the Electric Vehicle Charger (Residential and Business) Grants Scheme will be available to owners of EVs to buy and install EV chargers, with a total of $300,000 being committed. This includes 100 residential grants of $1,000 and 80 business grants of $2,500.

Need help or want to discuss?

Contact our team directly, we are here to help

Need help or want to discuss?

Contact our team, we are here to help