You have probably noticed a lot more electric vehicles on the streets and at the servos recently. Why have Aussies embraced electric vehicles so much more lately?
The answer probably has a lot to do with the electric vehicle council and the federal government's latest incentives - which make eligible EVs virtually tax-free. However, there are a few reasons why the electric vehicle market has flourished in recent times.
This article will discuss some factors to this spike as well as explain why a novated lease is the best option if you’re looking into getting an electric vehicle of your own.
Novated leasing provides a long term electric car discount
As opposed to purchasing a car outright, novated leasing is a long-term alternative that provides substantial savings on the overall costs of an electric vehicle.
A novated lease is a form of salary package to pay for your car with pre-tax income. It’s a three-way agreement between you, your employer and a novated lease provider, such as Easi. The main benefits of a novated lease are a reduction of taxable income and packaging your car expenses into one simple regular payment.
This form of leasing makes battery electric vehicles a lot more attainable for everyone. Some who may have considered electric cars too expensive for them should reconsider when novated leasing comes into the picture.
Government incentives make electric vehicles cheaper
New incentives implemented by the government mean that - on a novated lease - an electric vehicle and its running costs are paid 100% pre-tax, unlocking massive tax benefits for drivers.
Contact us to find out what EVs and PHEVs are eligible.
This means that not only do you reduce your taxable income and have more money in your pocket, but driving a more environmentally friendly electric vehicle. In addition to the federal government incentive, each state also has rebates available for eligible EVs that you may have access to!
Tesla model y rear wheel drive cost breakdown
To assist further with explaining these benefits, here is an example of a popular SUV to illustrate the benefits and show why more people are taking up novated leases on EVs:
Example Drive Away Price - $76,337
**Excludes state rebates that you may be eligible to!
Novated Lease |
|
Out of Pocket (per week) | $260.34 |
Total Out of Pocket (over 5 years) | $67,688.40 |
Residual at Lease End | $21,859.05 |
Total Cost Over 5 Years | $89,547.45 |
Term | 60 months (5 years) |
Weekly Budgeted Inclusions |
|
Electricity | $15.24 |
Registration/Rego | $16.07 |
Service | $5.08 |
Tyres | $5.92 |
RSA | $1.50 |
Insurance | $39.29 |
Total Weekly Running Costs | $83.09 |
Running Costs Over 5 Years (Included w/ Novated Lease) | $21,604.44 |
**Budgeted running costs are flexible and based on annual travel, for the purpose of this example, we have assumed 15,000km per annum and average insurance profile.
Let’s compare the cash price and paying cash for the identical running cost inclusions:
Cash Price |
|
Car Price | $76,337.00 |
Running Costs | $21,604.44 |
Total Price | $97,941.44 |
The novated lease tax benefits and incentives are so great, that they make the cost of ownership thousands of dollars cheaper than paying cash in this example.
While you won’t pay Fringe Benefits Tax (FBT) on applicable fuel-efficient vehicles, the FBT benefit still needs to be reported. Depending on your income and reportable fringe benefits it can be used to determine your eligibility and entitlement for things such as the private health insurance rebate, parental leave, child care subsidies and child support obligations, among others.
It can also be used to calculate things such as repayments for HECS or student loans and to establish whether you need to pay the Medicare levy.
Get the electric vehicle of your dreams with an easi novated lease
With affordable electric cars now being a much more reasonable possibility, there is no better time than now to get such a vehicle for yourself.
Easi has many years of experience when it comes to car leasing – and our extensive knowledge of electric and plug-in hybrid vehicles means we can assist in getting you in the car you want. Our wide range of EVs comes under flexible contract terms and covers many different body types.
To get started on your novated lease electric vehicle journey, get in touch with us today and learn more.
