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12 Novated Lease FBT Advantages for Electric Cars

Novated Lease FBT

Electric vehicles (EVs) are gaining popularity in Australia due to their environmental benefits and cost savings. One significant advantage of procuring an EV through a novated lease is the Fringe Benefits Tax (FBT) exemption. This exemption has accelerated the demand for EVs and made them more financially viable for individuals. In this article, we will explore the various benefits of the novated lease FBT exemption for electric cars.

What Are The Novated Lease FBT Benefits for EVs?

Environmental Impact

One of the key advantages of electric vehicles is their positive impact on the environment. EVs produce zero tailpipe emissions, reducing air pollution and contributing to combating climate change. By driving an electric car, individuals can actively participate in creating a cleaner and greener future.

Lower Running Costs

Electric vehicles offer significant savings in terms of running costs. Compared to petrol-powered cars, EVs are more energy-efficient, resulting in lower fuel expenses. Additionally, electric vehicles typically require less maintenance due to fewer moving parts, resulting in reduced servicing and repair costs. These cost savings make electric cars an attractive option for budget-conscious individuals.

Tax Savings

The novated lease FBT exemption for electric cars presents a unique opportunity for significant tax savings. Under a novated lease, lease payments and running costs are deducted from the employee’s pre-tax salary, reducing their taxable income. This reduction in taxable income can potentially result in substantial tax savings. By financing an electric car through a novated lease, individuals can enjoy the benefits of tax incentives and maximise their take-home pay.

FBT Exemption

The FBT exemption for electric vehicles is a game-changer for novated leasing. Eligible EVs are exempt from Fringe Benefits Tax, which significantly reduces the overall cost of the novated lease. This exemption applies to electric cars that fall below the luxury car tax threshold, currently set at $89,332 for the financial year 2023/24. By eliminating the FBT component, individuals can enjoy greater financial savings and make electric cars more affordable.

Financial Viability

The novated lease FBT exemption has made electric cars a financially viable option for many individuals. While the upfront cost of an EV may be higher than that of a petrol-powered car, the cost savings over time can offset this initial investment. The lower running costs, tax savings, and FBT exemption make novated leasing an attractive financing option for electric cars.

Increased Affordability

The FBT exemption for electric cars makes them more accessible and affordable for employees. By reducing the tax liability associated with novated leasing, individuals can enjoy the benefits of driving an electric car without incurring significant financial burdens. This increased affordability encourages more people to embrace sustainable mobility and contribute to reducing greenhouse gas emissions.

Enhanced Technology

Electric vehicles are equipped with advanced technology that enhances the driving experience. Features such as regenerative braking, smart charging capabilities, and innovative safety features provide superior comfort, convenience, and safety. By opting for an electric car through a novated lease, individuals can enjoy the latest technological advancements in the automotive industry.

Government Incentives

Many governments, including the Australian Federal Government, provide incentives and discounts to promote the adoption of electric vehicles. The FBT exemption for electric cars financed through a novated lease is one such incentive. These government initiatives encourage individuals to choose electric cars and contribute to a sustainable future.

Contribution to Sustainability

By driving an electric car, individuals actively contribute to sustainability efforts. Electric vehicles have a significantly lower carbon footprint compared to traditional petrol-powered cars. Choosing an electric car through a novated lease demonstrates a commitment to reducing greenhouse gas emissions and promoting a cleaner environment.

Positive Public Image

Driving an electric car can enhance an individual’s public image. As society becomes more environmentally conscious, choosing sustainable transportation options like electric cars demonstrates a commitment to sustainable living. This positive public image can have a ripple effect, inspiring others to consider electric vehicles and contribute to a greener future.

Future-Proofing

Electric vehicles are the future of transportation. By opting for an electric car through a novated lease, individuals future-proof their vehicle choice. As governments worldwide continue to prioritise sustainability and implement stricter regulations on emissions, owning an electric car positions individuals ahead of the curve and ensures compliance with future environmental standards.

Employee Benefits

The novated lease FBT exemption for electric cars also benefits employers. By offering novated leasing options for electric vehicles, employers can attract and retain environmentally conscious employees. This employee benefit demonstrates a commitment to sustainability and can enhance the overall employee experience.

In conclusion, the novated lease FBT exemption for electric cars offers numerous advantages for individuals and employers alike. The environmental impact, lower running costs, tax savings, and increased affordability make electric cars an attractive option for those considering a novated lease. By embracing sustainable mobility through electric vehicles, individuals contribute to a cleaner and greener future while enjoying the financial benefits of the novated lease FBT exemption.

Car Lease Melbourne | Novated Leasing Online
Car Lease Melbourne | Novated Leasing Online
Car Lease Brisbane

Unlocking the Benefits of Novated Leasing

Brisbane, the vibrant capital city of Queensland, is known for its lively atmosphere and thriving automotive culture. With a wide range of vehicle options and a growing demand for flexible car leasing solutions, it's no wonder that novated leasing has become increasingly popular in Brisbane. At Novated Leasing Online, we specialise in providing hassle-free car leasing solutions tailored to the needs of Brisbane residents and businesses.

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