Novated Leasing EVs
In the age of sustainable transportation, the spotlight shines brightly on Electric Vehicles (EVs) for eco-conscious commuting. Amidst this green revolution, novated leasing emerges as an appealing avenue to gain exposure to the renewable transition.
Novated leasing is a financial arrangement between an employer, employee, and a leasing company, which offers a tax-effective way to fund an EV. In simple terms, a Novated Lease is where the car payments and costs of running your new EV (such as tyres, servicing, insurance, registration, towbars and other accessories) are bundled together and deducted from your before tax pay by your employer. Your employer simply deducts the lease payment from your wage before tax.
EV Stealth Solutions’ mantra is accelerating EV Transition by expanding the EV experience, and Novated Leasing is a great tool allowing a bundled solution through a financial arrangement that is easy to execute and manage.
New tax laws mean that Electric Vehicles (EV's) priced under $84,916 are now 100% exempt from Fringe Benefits Tax (FBT). This means employees can pay for the finance and all running costs (and accessories) before tax is deducted from wages.
Here is a Worked Example:
Let's say your fortnightly gross salary is $3,000. From that $3,000, the ATO deduct $670 in tax (22%) leaving you $2,330 to spend on your living expenses including the vehicle.
If you finance a vehicle with the usual personal financing, you will be paying this and all running costs from the net $2,330 and still paying the full $670 of Tax.
The new legislation allows you to Salary Package the finance (a Novated Lease) and running costs before paying any income tax.
This is where a Novated Lease will package all the purchase, finance, insurance, running costs and accessories (including your EV Stealth towbars) into one simple payment and be deducted prior to the above tax being taken out. This means in this example you save paying 22% tax on any of your vehicle costs (More if you are on a higher tax rate).
AND because these payments are salary packaged you also don't pay GST, this automatically saves you an additional 10% (GST) on all vehicle costs.
The FBT exemptions only apply for cars “first used and registered post July 1st 2022”. That means you need to get a new car or very low mileage used EV to qualify.
EV Stealth has worked with groups like the Good Car Co, together with Novated Leasing companies like LeaseLab, Novated Lease Australia, Macquarie Leasing, becarwise and more.
Novated leasing with electric vehicles not only offers financial benefits but also aligns with a sustainable, eco-friendly lifestyle. It presents an opportunity to embrace cutting-edge technology while contributing to a greener future.
As the world shifts towards renewable energy and environmentally friendly transportation, novated leasing emerges as a viable pathway for individuals to access the benefits of electric vehicles.