With a ovated lease electric vehicle, you can save on the cost of an electric vehicle. The novated lease company covers registration, insurance and maintenance costs.
You also get to buy your EV at the end of the lease for a predetermined book value. If the EV is worth less than this projected book value, you don’t have to pay any extra.
Save Money on Your Taxes
A novated lease is a great way to get an electric vehicle without worrying about the upfront cost. In addition to getting an EV that you can afford, you’ll save money on taxes and running costs when you choose this option.
You’ll also be eligible for government incentives to make your new car even more affordable. The Federal government recently announced that it would abolish the Fringe Benefits Tax (FBT) for eligible EVs to encourage their uptake and boost the industry. It means that if you lease your EV through a novated lease, you can expect to save thousands of dollars per year on your tax bill.
With a novated lease, your car expenses are paid out of pre-tax income instead of post-tax income. It is called salary sacrificing, which can reduce your taxable income by up to a third. The regular payments for your novated lease include all the vehicle’s running costs, such as registration, insurance, maintenance, fuel and energy, and tyres.
The good news is that EVs are becoming more and more affordable, making them a perfect choice for a novated lease. In fact, according to a recent JD Power survey, lease affordability now trumps purchase affordability for EVs. It is partly because EV batteries last longer than traditional vehicles, meaning that your EV can be driven for more miles before it needs replacing.
While we always recommend that you speak to a professional tax advisor before making any decisions regarding your finances, it’s clear that choosing an electric vehicle on a novated lease is a smart move. If you want to learn more about how an EV novatedev.com.au novated lease electric vehicle can help you save on your taxes, don’t hesitate to get in touch with us today.
Enjoy the Benefits of Owning a Car
One of the best things about owning an EV is that you can save on running costs with your novated lease. It includes things like registration, insurance, maintenance and tyres. You can also claim back the cost of electricity you use to charge your vehicle. EV drivers save around $10 per 100km on fuel, while those with solar systems can save even more.
EVs are also easier to maintain than traditional vehicles. They don’t have spark plugs and catalytic converters, so there are fewer components to maintain or replace. Plus, the battery technology is constantly improving, so you can be confident that your EV will continue to work well. You can also expect a better trade-in value when selling your car.
Another significant benefit of novating an EV is that it makes you eligible for government incentives and rebates. Different states and territories have various schemes, but the average motivation is about $4,000 to help you pay for your new vehicle. Depending on where you live, you may also be able to claim additional benefits like free parking or a reduced registration rate.
In addition to saving on running costs, you’ll also be doing your bit for the environment by reducing emissions. Reducing your carbon footprint helps slow global warming and protect the planet for future generations.
As a result, there has been a recent increase in interest in electric vehicles amongst the Australian workforce. According to Kylie Chambers, managing director of novatedev.com.au, lease electric vehicle leasing company Maxxia, “We’ve seen a four-fold increase in orders for EVs over the first half of this year.”
So, if you’re considering switching to an EV, now is the perfect time. With the FBT exemption and government incentives, this opportunity is more affordable than ever.
