Electric car novated lease
With our expert guidance and bespoke novated leasing options, we’ll formulate the perfect deal to maximise your savings and tax benefits, so you can drive a state-of-the-art electric vehicle at an unbeatable price.
Now is the best time to buy an electric vehicle (or plug-in hybrid)
On 1st July, 2022 the Australian government introduced the Electric Car Discount, which made electric vehicles and plug-in hybrids more affordable than ever.
To simplify it, if you buy an electric vehicle that’s under the luxury car tax threshold of $91,387 then the Australian government exempts you from paying any fringe benefits tax (FBT). That’s thousands in additional savings each year. It also means you can pay for your electric vehicle’s finance and all running costs before tax, which is a saving of up to 57% compared to other car purchasing options.
Using a real-life example, on a standard Tesla Model 3 this equates to a tax saving of around $13,300 per year on a 4-year lease!
Tesla Model 3 Car and running costs over 4 years
The savings speak for themselves
With an FBT-exempt vehicle, you’re paying 100% of the cost of leasing and running your car pre-tax, leading to some pretty significant savings. You also avoid paying GST on the car and other car-related expenses. Getting an electric through a novated lease can save you tens of thousands of dollars compared to purchasing it outright or using a traditional car loan. As far as no-brainers go, this would be right up there.
What are the most popular novated leases for electric cars in Australia?
Australians are shifting to EVs in record numbers, with the Tesla Model Y and Model 3 taking the lead thanks to their cutting-edge technology and widespread appeal.
But it’s not the only one in the market. New kid on the block BYD offers the budget-friendly BYD Seal which is steadily emerging as a favourite. The brand also delivers popular options like the Atto 3 and Dolphin, appealing to drivers seeking affordability and innovation.
Other standout EVs gaining momentum through novated leasing include the sleek Polestar 2 and the efficient MG4. For those with a taste of luxury, models like the Kia EV6, BMW iX1, and Mercedes-Benz EQA 250 offer sleek design and advanced features, offering an EV to match every lifestyle and budget.
For hybrid enthusiasts, plug-in hybrid electric vehicles (PHEVs) like the Mitsubishi Outlander, its compact sibling the Eclipse Cross, and models such as the Mazda CX-60, Volvo XC60, and BYD Sealion 6 are top choices.
However, it’s worth noting the FBT exemption for PHEVs concludes on April 1, 2025, after which only fully electric vehicles will qualify for the EV Discount. Whether you're after a sleek EV or a versatile PHEV, the novated leasing landscape is full of options tailored to suit your needs and maximise savings.
Breaking it down: How does an EV novated lease work in Australia?
- Find your dream car
Take our simple calculator for a spin and discover how much you could save by salary sacrificing on your next electric car. Choose a term length (1–5 years) and we’ll provide you with a comprehensive quote.
- Pay with your pre-tax salary
With salary sacrifice, your EV payments are deducted from your pre-tax salary. This can effectively lower your taxable income, reducing the amount of tax you pay.
- You lock it in
Score a GST discount on your vehicle’s purchase price and enjoy savings on your EV’s running costs with a novated lease in Australia. Once the details have been finalised, you sign a novated lease for your electric car.
- Start driving green
Feel good about your drive – save the planet and your wallet at the same time. An EV novated lease in Australia is a win-win.
Drive smarter with Leaselab
Leaselab is one of the most experienced novated leasing providers, helping thousands of Aussies unlock savings and make the leap to an electric car. With salary sacrificing, we’ll show you how easy it is to save big and cruise into the future with your next EV – all without breaking the bank.
Keen to find out more? Give us a call at 1300 888 594 or contact us today.
Save thousands in tax by driving your dream car
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