You’ve likely noticed more electric vehicles on the road recently – for good reason. Thanks to EV novated lease electric cars and government incentives, new low-emission vehicles can be cost-effective to own.

When you salary package an eligible EV or PHEV with beCarWise, your regular lease payments are made using pre-tax income (or fully pre-tax for eligible EVs), which means you can save on car registration, insurance and maintenance costs!

Tax Savings

EV Novated Leases are among the most effective ways to drive an electric car. A novated lease deducts the finance and running costs from your pre-tax salary, reducing your taxable income. It allows you to pay less tax, saving you thousands of dollars.

It is excellent news, especially for younger Australians who want to switch to a greener, quieter and cheaper way of transport. A recent nationally representative CR American Experiences Survey found that more than half of respondents in their 30s would consider a novated lease to reduce costs and save money. It is a significant shift from only 32 per cent of over-51s who would do the same. EVs offer many advantages, from reduced operating costs and maintenance to lower fuel and power bills.

Government Incentives

The Labor Government has recently made EVs FBT exempt, which will reduce the price of any EV or PHEV when leased through a novated lease. It will create a $50,000 model up to $4,700 cheaper per year than traditional vehicles. Combined with the low running costs, this makes an EV even more attractive to lease.

Novated leasing also allows you to salary package a fully maintained electric vehicle with all associated running expenses, including comprehensive insurance, servicing, registration renewals and fuel. It will further save on GST, as the lease payments are deducted from your pre-tax income.

Flexibility

You can save on petrol and running costs with a novated lease. Many recent EVs offer impressive battery ranges and can be driven on a single charge.

As a fully maintained novated leasing customer, you’ll enjoy the benefits of all running costs, including fuel, registration, insurance and regular servicing included in your monthly payment. It makes budgeting much more accessible. When you change or retire, you can quickly transfer your novated lease between employers.

Flexibility

As you may know, a novated lease is an arrangement between your employer, ORIX and yourself that bundles all vehicle finance and running costs into one simple payment, which is collected in part or whole from your salary before tax, optimising your take-home pay. It is an excellent way for employees to access vehicles they would typically not afford outright, particularly in the current electric vehicle market.

It is why Maxxia sees a four-fold increase in EV-novated lease orders over the first half of FY23. Electrified novated leasing is also the best option for those worried about range anxiety (the fear of not having enough battery capacity for long trips), as they can turn their vehicle in at the end of the lease term and pick up the latest model with longer battery ranges.

Flexibility

As more Australians switch to electric vehicles, the options available for them to save money are growing. With no FBT on eligible EVs and PHEVs, novated leases with popular models such as the Audi e-tron, Jaguar I-PACE, and Hyundai Kona are more affordable than ever.

EVs are also known for their superior performance and reliability, meaning they last longer than petrol cars. They can even be driven further between service appointments thanks to their improved battery capacity.

With a salary sacrifice novated lease, you can drive an EV of your choice and benefit from tax benefits such as lower running costs. By combining your car expenses into one regular monthly payment and lowering your taxable income through salary sacrificing, you can easily afford the latest in EV technology. At the end of your novated lease, you can either renew it or swap for a different vehicle, making it an easy option for anyone looking to switch to EVs. For more information about EV novated lease electric cars, check this out.