An EV novated lease allows you to salary package an electric vehicle’s finance and running costs into your pre-tax salary each pay cycle. It also makes you eligible for a range of government incentives.
EVs below the Luxury Car Tax threshold (currently $89,332) are exempt from import tariffs, making them even more affordable for employees with salary packages through a novated lease. For more information about the EV novated lease, click here.
Savings on fuel
Electric vehicles are better for the environment and cost less than fuel cars. They’re also much fun to drive and can save you money on repairs. EVs are more reliable than gas-powered models, especially after their first year of use. In addition, most EVs are under warranty for their entire service life.
With the recent Fringe Benefits Tax (FBT) exemption on eligible electric vehicles, getting an EV through a novated lease could save you thousands of dollars a year. It makes it easier and more affordable than ever to switch to an EV and enjoy its benefits.
With a novated lease, your employer deducts your lease payments and running costs directly from your pre-tax salary each pay cycle (known as salary packaging). It means you’ll save income tax and GST on your car. It’s the most tax-efficient way to get an EV or hybrid electric vehicle, which is why it’s growing in popularity.
Savings on tax
Novated leases are an excellent way to save on taxes and running costs. Your EV leasing company can claim the car’s registration and insurance costs. It can also include the cost of a home charging station (if applicable).
However, it’s important to note that while EVs are cheaper to run than traditional vehicles, you still need to factor in servicing costs. These are typically around $350 a year but again vary based on vehicle type and age.
Convenience
Novated leasing is an easier way to get into your next car, and with our wide range of EVs, it can be the wiser option, too. With a novated lease, all vehicle finance and running costs (like registration, insurance and servicing) are bundled into one simple monthly payment, which is collected in part or whole from your salary before tax.
EVs have grown in popularity recently, and you’ve probably noticed more on the roads or at service stations. While there are several reasons for this, one big reason is the FBT exemption on eligible low-emission vehicles.
According to FleetPartners, EVs and plug-in hybrids comprised almost half of their novated leases in June 2023. Because they sit below the Luxury Car Tax threshold, they are an extremely competitive option for those looking to buy a new car with a Novated Lease. However, the benefits don’t stop there. EVs also attract government incentives that make them even more affordable.
Flexibility
An EV novated lease offers employees significant flexibility, particularly in car selection and running costs. With a novated lease, the vehicle is paid out of pre-tax salary (also known as ‘car salary sacrifice’). It also includes most operating expenses like fuel, registration and insurance, making it easier to manage a household budget.
Leasing an EV also provides lasting factory warranty protection, which is great for peace of mind. And because EVs don’t have the same mechanical components found in petrol cars, they tend to need less maintenance and will be cheaper to service.
Plus, with a novated lease, you can change jobs without the hassle of selling your old car. You can even pause the subscription, allowing you to return your EV or trade it in for another at any time. And if you need help getting started, ORIX’s customer support team can guide you. ORIX OneView and the ORIX Companion App provide 24/7 reporting and lease management. For more information about the EV novated lease, click here.