If you’re considering leasing an electric car, novated leasing could be ideal. It can save on fuel and tax costs, but additional benefits exist.
The Australian Government has shown its support for more environmentally friendly vehicles through incentives and rebates, with incentives such as an FBT exemption for eligible low-emission EVs that will remove Fringe Benefits Tax payments on such cars.
Save Money on Fuel
Battery electric vehicles (BEVS) offer an effective way of cutting fuel costs. As they contain fewer moving parts than petrol or diesel cars, their maintenance needs are lower, and they also produce less carbon dioxide emissions.
According to the Electric Vehicle Council, city drivers who drive 15,000 km annually in an SUV could save as much as $135 monthly by switching to an EV. In addition, newer models allow up to 550km single charge driving, saving drivers an average of an additional $1400 yearly on fuel costs.
Novated leases provide the perfect solution. They make owning an electric vehicle affordable while meeting some Australians’ affordability needs.
Novated leases are a form of salary packaging, enabling employees to deduct part of their pre-tax salary for car purchases through salary packaging arrangements, thus lowering taxable income and saving tax. Under Australian Taxation Office rules, Fringe Benefits Tax (FBT) would apply to these payments; however, due to the Electric Car Discount Act exemption of vehicles priced under the $84,916 luxury car threshold from FBT application, novated leasing payments made against these types of lease agreements could now avoid FBT altogether.
Australians interested in driving an eco-friendly, low-emission vehicle will find this news encouraging; remember a few key points before moving. Consulting an accountant about your options before committing can also be invaluable when considering a novated lease. Finally, ensure the chosen vehicle fits your lifestyle, needs and budget.
Save Money on Maintenance
Novated lease electric car leases provide many advantages over petrol or diesel cars, including being cleaner and more eco-friendly and saving on maintenance and repair costs.
Compared to petrol vehicles, electric vehicles (EVs) typically feature fewer moving parts and require less servicing, making them more cost-effective for maintaining and repairing over their lifespan. It may explain why so many people are opting for these cars.
Novated leases can help save you money on fuel, registration and insurance expenses by deducting them directly from your pre-tax salary, which significantly decreases taxes – making novated leasing the most economical method for purchasing an electric vehicle.
Save Money on Commercial Charging Stations
If your commercial property or business is located in an area with many electric vehicles (EV) owners, installing charging stations could be an excellent way to attract customers and make them more likely to visit.
EV charging stations can be an effective marketing strategy, making your business more sustainable and adaptive to changing energy policies. For instance, if your company runs on electricity and you install an EV charger within its building, renewable energy sources can also charge the vehicle – giving your business greater resilience against changes to energy policies.
Installing electric vehicle charging stations can provide employees who drive eco-friendly vehicles and lead a healthy lifestyle with an incentive that can attract and retain the best talent – which in turn leads to positive shareholder returns for your company.
Though some remain unsure whether an electric vehicle (EV) is right for them, these vehicles have become increasingly popular nationwide and more affordable as more EVs come onto the market.
Electric Vehicles can save your company both environmentally and financially in the long run. Due to being more fuel-efficient, EVs help lower fuel costs and emissions.
Electric vehicles (EVs) offer many advantages over gasoline-powered cars in ease and convenience, including reduced breakdown potential. Furthermore, EVs tend to be much more reliable.
Novated electric car leases provide your employees reliable transport while saving your business money. Your savings could go towards paying for the installation of charging stations or offsetting other lease benefits such as maintenance and insurance costs.
Save Money on Tyres
Novated lease electric car leases provide a cost-effective way to drive an eco-friendly vehicle. These vehicles are incredibly economical to run and could save thousands in fuel, registration, and maintenance fees alone.
As with any car, electric vehicles (EVs) occasionally require service. However, unlike petrol