As one of the novated lease providers to Queensland Government, we’re “motorvated” to helping employees minimise their environmental impact.
One way we’re encouraging this is by helping our customers make informed decisions about more sustainable vehicles to drive.
If you’re “motorvated” to switch to an electric vehicle (EV), our large dealership network^ offers a large range of low-emission vehicles to suit most budgets and lifestyles.
But if you’re still not sure about EVs, we’re here to help – starting with some of the basics.
^RemServ's car procurement and insurances are optional. You may choose to use our services or those of another provider
What is an Electric Vehicle?
As the name suggests, an electric vehicle runs on electricity. While several types of EVs exist, the most common are battery electric vehicles (BEVs) – which run solely on batteries charged by electricity and don’t require petrol or have an exhaust pipe.
Another common type of EV is a plug-in hybrid vehicle or PHEV, which have both an electric and petrol motor. These cars utilise the electric motor until the battery is out of power before automatically switching to the petrol-powered engine.
Electric vehicle sales currently account for less than 2% of the overall new car market, but industry trending and forecasting, combined with government policy, suggest a potentially significant change over the next decade.
Novated Leasing and Electric Vehicles
Here are some of the potential benefits of a novated lease on an electric vehicle.
We will work with you to draw up a manageable budget covering all your expenses in one regular pre-tax* payment.
*Up to the Luxury Car Tax threshold of $89,332.
During your lease you have the support of RemServ’s Customer Service team and for a fully-maintained lease you also have access to our maintenance team Stay in control of your account with the RemServ app.
While you’ll pay more for most electric vehicles at the moment, an EV doesn’t have a petrol or diesel engine, and therefore could cost much less to run.
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.
From sourcing your electric vehicle and negotiating a great price^ to helping with paperwork, including finance and any insurances, RemServ will take on the heavy lifting.
^RemServ's car procurement and insurance services are optional. You may choose to use our services or those of another provider
While the potential tax savings you could make on a novated lease on a petrol vehicle are among the main drawcards of a novated leasing, The Federal Government’s ‘Electric Car Discount’ policy could offer more incentives for EV drivers on a novated lease.
The policy exempts the payment of fringe benefits tax (FBT) on some electric vehicles that fall below the luxury car tax threshold for low-emission vehicles ($89,332), as well as an import tariff exemption that removes a 5% tax on many imported EVs.
While this FBT exemption applies to business operated vehicles and those financed under a novated lease, it does not apply to private buyers of EVs.
We understand many people are still learning about EVs, which is why we continue to work with industry groups to provide you with the latest EV updates. We are in regular contact with NALSPA (National Automotive Leasing and Salary Packaging Association) and the Electric Vehicle Council, the national body for the electric vehicle industry.
Go to our FAQs page for answers to our most commonly asked questions.
There are lots of misconceptions when it comes to electric vehicles. We respond to five of the most common.
"They’re too expensive"
Yes, the upfront costs of electric vehicles are currently higher than petrol vehicles. But things swing back in the other direction after that. The Electric Vehicle Council estimates that EVs cost around 70 per cent less per kilometre than petrol cars, as they have less components – such as no engine, transmission, head gasket, filters or spark plugs.
You also don’t need to budget for fuel with a pure EV. The average Australian driving 15,000 kilometres a year will spend more than $2,000 on fuel; an EV covering the same distance could cost around $1,400 less.
"One charge doesn’t get you far"
With electric vehicle technology constantly evolving, so is the range capacity on some models. The Electric Vehicle Council of Australia states that current EVs have an average battery range of nearly 480km, with some new models getting up to 550km on a single charge.
“Charging them is difficult”
Many new electric vehicles include an entry-level charger which simply connects to a typical electricity power outlet at home. Public charging solutions are also available across Australia – see the Electric Vehicle Council of Australia’s handy ‘charger map’, which details locations around Queensland and the rest of Australia, including the types of chargers.
“Charging takes too long”
Entry-level chargers supplied with electric vehicles can take up to 30 hours to fully charge a vehicle, but faster options are available and can be purchased at an optional cost.
Public chargers can also get the job done quicker. Regular charging stations can get you full charge in less than five hours, while super-charge stations potentially add up to 300 kilometres of range in 10 to 15 minutes.
“They don’t have power”
Electric vehicles can deliver full torque instantly and have the capacity to accelerate faster than regular vehicles.
They can also provide better handling and cornering due to the gravity-lowering placement of their batteries at the bottom of the vehicle.
Email us or speak to one of our RemServ Leasing Consultants and let us help you understand leasing better by unlocking the options available to you.
*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. From 1 April 2025, a plug-in hybrid electric vehicle will not be considered a zero or low emissions vehicle under FBT law. However, you can continue to apply the exemption if both the following requirements are met: 1) Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue providing private use of the vehicle on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding.
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.
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