Package an electric car and save with novated leasing
The Australian Government’s Electric Car Discount policy provides an exemption from the Fringe Benefits Tax for some electric and plug-in hybrid vehicles (PHEV). Which means with EV salary packaging, you can now get a non-luxury electric vehicle and enjoy the benefits of novated leasing.
As one of Australia’s leading novated lease providers, we know everything there is to know about the ev car discount policy, the electric vehicle market, and what potential savings are in store for you when you choose an EV novated lease. Enquire about getting an EV novated lease with Fleet Network today.
Electric car leasing made easy with Fleet Network
The Electric Car Discount policy combined with the performance, efficiency, and environmental benefits of electric cars is fast tracking the availability and affordability of EVs for the Australian market.
Securing a novated lease on an electric car in Australia gives you the stress-free convenience of bundling your finance repayments with your running costs – including power usage, registration, servicing, insurance, and more – into regular pre-tax payments.
Our expert team will give you the full picture on pricing, tax savings, discounts available, and benefits you can unlock by opting for an electric or plug-in hybrid vehicle under a novated lease.
What you need to know about EV novated leasing in Australia
Electric vehicles covered
From 1st July 2022, getting an EV novated lease means you may be exempt from FBT on eligible electric cars. The Fringe Benefits Tax exemption covers zero or low emissions vehicles including battery electric vehicles, hydrogen fuel cell electric vehicles, and plug-in hybrid vehicles under the Luxury Car Tax threshold.
New and second-hand EV cars qualify
You can salary package a new or used EV model of your choice. The second-hand model must have a first retail sale of 1 July 2022 or later.
All your running costs, covered
You’ll enjoy the benefit of bundling all your running costs with EV novated leasing. This includes registration, insurance, servicing, new tyres, charging, and more, included in your repayments.
Flexible options, always
You’ll be provided with different options throughout your EV lease and prior to its expiry. Whether you want to purchase, sell, or refinance, or upgrade to a new car, the choice is yours!
Choose from a growing market of electric vehicles
When it comes to your electric car lease, we can source the low or zero emission vehicle of your dreams. Whether you know what you want or need options to understand the market, we provide all you need to know on electric vehicle brands, makes, models and current EV lease specials available.
Vehicles currently available for an EV novated lease with FBT exemption include:
Find out how much you can save with an electric car novated lease
Samuel Made the Switch to an EV Novated Lease with Fleet Network
In his role as Business Development Manager at the Civil Contractors Federation SA, Samuel understands the challenges of regional travel across Adelaide, relying on a company car for years. When presented with a car allowance, he recalled a conversation with Fleet Network’s Adrian about Novated Leasing.
Samuel’s research into Novated Leasing and the benefits of electric vehicles, aligned with his personal commitment to sustainability. Opting for a Tesla allowed him to embrace these values while demonstrating the advantages of EVs within his industry. Fleet Network’s seamless transition, guided by Adrian and supported by Kellie, made the process efficient and hassle-free.
Samuel highly recommends Fleet Network for those considering switching to an EV novated lease.
Electric Vehicle
FAQs
What is an electric vehicle?
An electric vehicle (EV) runs partially or fully on electricity rather than liquid fuels, as per the Electric Vehicle Council’s definition.
There are many different types of EVs, and the most common type being battery electric vehicles (BEV) which operate solely from electricity charged through batteries and not petrol. BEVs are the easiest to differentiate among EV models as they don’t have an exhaust pipe.
Another type of common EV is a plug-in hybrid vehicle (PHEV). Plug-in hybrid cars primarily use an electric motor but can switch to a petrol-fuelled engine if and when the electric battery runs out of power. They have a stronger electric capacity than hybrid electric vehicles (HEV). Like PHEVs, HEVs have a dual electric-petrol engine capability but their smaller electric battery gives them a much more limited capacity to run on electricity before needing to switch to petrol.
What is the Electric Car Discount policy?
Introduced by the Australian Government in response to the growing push for cleaner, greener transportation, the The Electric Car Discount policy, which was passed by Parliament in December 2022. exempts certain zero to low emissions cars made available by employers to their employees from the Fringe Benefits Tax (FBT).
The removal of the FBT effectively makes EVs available to salary sacrifice with a novated lease, which was not an option prior to the policy coming into effect.
The policy aims to boost the adoption of electric vehicles (EVs) in Australia while encouraging car manufacturers to offer more affordable electric car models.
The policy also included an investment by the Government to boost electric vehicle charging infrastructure right across Australia.
Are electric vehicles exempt from the Fringe Benefits Tax?
In short: yes, they are! There are certain criteria EVs must meet for them to be exempt from the FBT.
The policy applies to battery electric vehicles and plug-in hybrid electric vehicles. PHEVs will not be eligible from April 1, 2025 as they will no longer be considered a zero or low emission vehicle under the FBT law.
Which EVs are eligible for Fringe Benefits Tax exemption?
Non-luxury battery electric and plug-in hybrid models are eligible, up to a maximum purchase cost of $84,916. The vehicle must first be registered after July 1, 2022.
Is it worth novated leasing an electric car?
Absolutely. Thanks to the Electric Car Discount, current or aspiring electric vehicle drivers can now enjoy the benefits of novated leasing previously unavailable to them. If you have been interested in getting an electric vehicle but held off due to the cost, you now have an affordable option to own an EV with a novated lease.
By novated leasing an electric car, you don’t have to pay GST on the upfront price of your vehicle and bundle all your running costs such as charging, insurance, registration, tyres and servicing, in your repayment. Your repayment is taken from your pre-tax earnings, so you end up with more of your own income and save on tax.
Interested but unsure how to start the novated leasing process? The Fleet Network team will guide you by setting up and managing your lease for a stress-free, easy process. Contact our team to get started with a quote that is tailored to you and your circumstances.
How much does it cost to lease an electric vehicle?
Purchasing an electric vehicle through a novated lease is a cost-effective way, compared to any other leasing or financial arrangement. This is due to the Electric Car Discount policy, the upfront tax savings on the purchase price of your vehicle, and the ongoing benefits of running your vehicle throughout the lease. The costs of leasing an electric vehicle with Fleet Network will depend on your own personal employment and financial situation, as well as the EV you wish to lease. To find out the costs of leasing an electric vehicle with Fleet Network, get a quote today.
Can I get a Tesla on a novated lease?
Yes, you can! Any Tesla can be packaged as a novated lease. Variants of the Tesla Model 3 and Model Y are also eligible for FBT exemption. Contact us for a quote tailored to you.
Get started with a Fleet Network EV novated lease today.
Fleet Network is proudly one of Australia’s leading electric vehicle leasing companies.
We help employees across a wide range of industries to secure their dream car through salary sacrificing via an EV novated lease program. Afterall, it’s the simplest and easiest way to purchase your dream car.
