There’s never been a better time to get into an electric vehicle, and there’s never been a better way than through a novated lease with RemServ.
With the Australian Government’s Electric Car (EV) Discount, taking out a novated lease on an EV just got a whole lot cheaper. So, if you were thinking about making the switch to an eligible electric or hybrid vehicle your timing is impeccable.
As Queensland’s largest novated lease provider, we’re ready to help get you into an electric or hybrid car of your choice. We’ve geared up our systems and are working closely with key suppliers to help you make a confident choice – for yourself and the environment.
The New EV Discount: A Recap
Novated leases are required by law to have a certain amount of Fringe Benefits Tax be paid – it’s why pre- and post-tax payments are needed. With the Electric Car Discount however, a novated lease on an eligible EV is FBT exempt, meaning you don’t pay any post-tax contributions – for EVs retailing up to the Luxury Car Tax threshold of $89,332.
How Much Could You Save?
We’ve compared the potential savings you could get under existing novated lease policy with what you could enjoy under the EV Discount.
Let’s say you earn $80,000, and you’ve decided an MG ZS Essence is for you, driving it 20,000 kilometres a year over a five-year lease.
Your estimated net benefit under the EV Discount is $30,416*
Your estimated net benefit under the existing novated lease legislation is $11,288*
That’s a potential saving of $19,129*!
EVs and Novated Leasing
Taking out a novated lease on an electric vehicle comes with many potential benefits, including:
A novated lease on an EV is fully FBT exempt – if its retail prices is below the Luxury Car Tax threshold of $89,332 – meaning all your payments are made from your pre-tax salary. This could reduce your taxable income – resulting in you potentially paying less tax than you would have otherwise.
Enjoy the budget convenience of having the car’s finance repayments and running costs – including electricity, registration, insurance and servicing – bundled into one regular pre-tax* payment across the course of the year.
In addition to the FBT exemption, the cost of running an EV could be less than a traditional petrol or diesel vehicle. The Electric Vehicle Council estimates that a city-based driver of a typical SUV, driving 15,000 kilometres per year, could save more than $135 per month on running costs.
Thinking about taking advantage of the Electric Car Discount? Think it’s time to talk to RemServ.
As Queensland’s largest novated leasing provider with more than 30 years’ experience, we know all there is to know about salary packaging a car. We’ve worked closely with key suppliers in the electric vehicle space and geared up our systems to help get you into an eco-friendly car of your choice.
Complete the form below and we’ll be in touch.
*Novated Lease example: The estimated potential tax benefit is exclusive of GST and is based on the assumption that you would have paid for the lease from your post-tax salary (as opposed to salary packaging those payments from your pre-tax salary or a combination of your pre and post-tax salary). Payment includes: Your car payments, fuel/electricity, registration, tyres, insurance and scheduled servicing. The estimated annual benefit will vary depending upon salary, employment circumstances, selected benefits and applicable tax treatment. The example assumes that the car is an eligible zero or low emissions vehicle, the value of the car at the first retail sale was below the luxury car tax threshold of $89,332 for fuel efficient vehicles, the car is first held and used on or after 1 July 2022, you earn $80,000 a year, a 5-year lease term, an annual distance travelled of 20,000kms and a 28.13% residual value. The estimated annual operating costs includes estimates of fuel, maintenance, tyres, registration, comprehensive insurance and fleet management fee and are exclusive of GST. GST of 1/11th is payable on your ECM contributions. State Stamp Duty rates apply. PAYG tax rates effective 1 July 2021 have been used.
Things you need to know: The implications of salary packaging a motor vehicle through a novated leasing arrangement, including tax savings will depend on your individual circumstances. The information in this publication has been prepared by RemServ for general information purposes only, without taking into consideration any individual circumstances. Before acting on any information or entering into a novated leasing arrangement, you should consider your objectives, financial situation and needs, and, take the appropriate legal, financial or other professional advice based upon your own particular circumstances. The Queensland Government strongly recommends that you obtain independent financial advice prior to entering into, or changing the terms of, a salary packaging arrangement.
Conditions and fees apply, along with credit assessment criteria for lease and loan products. The availability of benefits is subject to your employer’s approval. RemServ may receive commissions in connection with its services.
Remuneration Services (Qld) Pty Ltd | ABN 46 093 173 089.