Electric vehicles (EVs) have fewer moving parts than petrol-engine cars, making them less likely to break down. They also require less maintenance and fewer tyre replacements. However, they still need to be registered and insured. With a NovatedEV novated lease electric vehicle, you can claim expenses like fully-maintained insurance, servicing and tyres, and electricity usage on your vehicle.
EVs are FBT-exempt
Electric vehicles are much more expensive than their petrol-based counterparts, which is one of the main barriers to EV uptake. To encourage the adoption of EVs, the government has introduced legislation that exempts them from Fringe Benefits Tax (FBT) when their salary is packaged in a novated lease arrangement. The new legislation will reduce the cost of EVs by eliminating the FBT obligation, which can amount to thousands of dollars per year on a $50,000 EV. It will make EVs more attractive for employees and boost the take-up rate of novated leases.
However, the new law does come with a few caveats. For example, the EV exemption is only valid for three years, after which it will be reviewed. The government will examine various factors, including how many people use EVs in Australia and whether they drive them for work or private use.
To be eligible for the FBT exemption, a car must be an electric or hybrid vehicle powered by an electric motor. It includes battery electric vehicles, hydrogen fuel cell electric vehicles, and plug-in hybrid electric vehicles. Petrol-hybrid cars which don’t have an electric motor are not eligible for the FBT exemption. It is also important to note that the cost of a home charging station does not count as an exempt car expense under the FBT rules.
While the FBT exemption for EVs will help to encourage employee demand for this type of vehicle, it will only be effective if employers and their employees can afford it. It will be a challenge for some employers, as the price of an EV can be up to $9,000 more than a comparable petrol vehicle. In addition, the resale value of an EV is often lower than that of a traditional petrol-based car, which could impact employee affordability. Despite these challenges, the EV fee exemption could still be an excellent way for businesses to increase their sustainability and staff morale.
They are more affordable.
While the initial cost of an EV may be higher than that of a gas-powered car, they are significantly cheaper to run. They require fewer moving parts, meaning they can travel further on a full battery charge and don’t need servicing as frequently. It makes them much more affordable to maintain than petrol cars, especially in a novated lease arrangement. Additionally, EVs are typically quieter and more reliable, meaning you’ll likely spend less on repairs.
An EV novated lease can help you afford the latest electric vehicles, including hybrids, plug-ins, and battery-powered cars. You’ll be able to salary sacrifice the vehicle’s purchase price and running costs, resulting in significant tax savings for you and your employer. Plus, you can choose an EV eligible for the EV Discount to reduce your running costs further.
Electric vehicles are becoming increasingly more affordable, thanks to new government incentives. They’re also attracting buyers in droves because they’re safer and cheaper to run than traditional petrol cars. EVs can cost as little as $10 to run per day, and you’ll be able to save significantly on petrol prices, electricity rates, and maintenance costs.
Many organisations are starting to recognise the benefits of a novated lease. For example, Victoria’s Western Health has partnered with Maxxia to offer a Tesla EV novated lease as part of its employee benefits program. It enables employees to choose an EV that suits their budget, lifestyle, and driving needs.
They are more reliable.
Electric vehicles are more reliable than traditional cars, thanks to the lack of moving parts. They also have fewer maintenance costs, such as oil changes, and are usually cheaper to run. They can be charged at home or a public charging station for less, and there are no worries about running out of petrol. These benefits are boosting their popularity and making them more affordable than ever. For more information about the NovatedEV novated lease electric vehicle, click here.
