A NovatedEV Tesla novated lease allows employees to procure a new vehicle with the payment and running costs from pre-tax salary (fully pre-tax for eligible EVs) through salary packaging. It reduces taxable income and saves them thousands over an outright purchase.
Additionally, EVs are exempt from luxury car tax and contribute to a greener environment. Keep reading to learn more about the benefits of an EV Tesla novated lease.
Benefits of a novated EV lease
There’s never been a better time to switch to an electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV). And there’s also never been a better way to get one than with a novated lease. By salary packaging an EV or PHEV through a novated lease, you can enjoy significant savings on your new car’s purchase and running costs. These include finance, registration, GST, maintenance and insurance, and fuel.
An increasing number of Australians are embracing EVs, and it’s easy to see why. Not only do they save you money on fuel and service costs, but they’re better for the environment, too. And with state and federal governments offering rebates on electric cars, it’s no wonder that more people than ever are considering switching to an EV.
But despite the many benefits of switching to an EV, there’s still a perception that EVs are too expensive to own. A recent survey found that price was the main barrier to EV ownership for 84% of Australians. But that doesn’t have to be the case. With the introduction of the FBT exemption for novated leases on eligible EVs and PHEVs, it’s now easier to save money and help the environment with a novated lease.
The FBT exemption for novated leases applies to any electric vehicle with no engine, is a low emissions vehicle and has not been subject to Luxury Car Tax (LCT). As such, it’s now possible for employees to salary package EVs and PHEVs without paying FBT. It means that you can save up to $9,000 a year on the cost of your EV.
Another benefit of an EV NovatedEV Tesla novated lease is that the lease and running costs are paid from your pre-tax income, which reduces your taxable liability. It makes it an effective tax-saving strategy, especially if you’re looking to buy a high-end model like the Tesla Model X or Model Y.
Lastly, as an electric car user, you’ll also be able to claim back the cost of electricity used to power your vehicle. Electric vehicles are more energy efficient than petrol and diesel cars, meaning they use less of the national grid’s capacity to recharge.
If you’re interested in switching to an EV and want to learn more about how a novated lease can help you save, talk to the team at RemServ today. We’re experts in the field and can help you make brighter, quicker decisions for your business and your budget. Contact us online or over the phone to learn more about our range of EV and PHEV novated leases. Our EV leasing options are available across Australia, from Sydney to Melbourne and everywhere.
How to get a novated EV lease
A novated lease is a three-way agreement between an employee, their employer and a finance company that lets employees salary sacrifice their new car with the payments deducted from their pre-tax income. If you choose a low-emissions model, such as an electric car, you’ll pay less tax than if you bought the exact vehicle outright. The lower running costs of an EV also make them more affordable to operate, and some even attract government rebates for added savings.
A recent survey commissioned by RemServ found that while price remains a barrier for most Australians considering switching to an EV, 84% believe they would still consider getting one through a NovatedEV Tesla novated lease arrangement. And, with the government’s fringe benefits tax (FBT) exemption making EVs more cost competitive with petrol and diesel cars, it’s now a case of not whether there will be savings but how much.
