At the end of 2022, the Australian government introduced a Fringe Benefits Tax (FBT) exemption on eligible Electric Vehicles and Plug-in Hybrids. It will make EVs more affordable when purchased through salary packaging and novated lease arrangements.
Depending on the car, this could save employees thousands of dollars annually. It also encourages workplaces to shift to EVs and help reduce emissions. For more information about the novated lease electric car no FBT, click here.
No FBT
Since July 2022, FBT will no longer be payable on eligible electric vehicles (EVs) or plug-in hybrid electric vehicles (PHEVs). It means an employee sponsored by their employer for a fully novated lease for an EV or PHEV will save thousands of dollars annually. The gross-up value of an EV or PHEV is calculated using a statutory formula that includes the vehicle’s purchase price with a 20 per cent loading plus an estimate of how much it is used for work and private use – recorded via logbooks.
With no need for petrol, an EV can also help to reduce running costs significantly. And with commercial-grade charging stations throughout Australia, you’ll likely never need to stop for a fill-up again. We can also assist you in setting up a home charging station as part of your novated lease so you can charge in minutes when needed. Our team will walk you through your options and provide a free quote.
No tax
The EV FBT exemption allows employers to sacrifice salary for an electric or plug-in hybrid vehicle without being charged 47% fringe benefits tax (FBT). According to industry figures from significant fleet management company SG Fleet, this could equate to saving up to $9000 per year on calculated FBT payments.
EVs currently eligible for the EV FBT exemption include Tesla Model 3 & Model Y, BYD Atto 3, Kia EV6, Hyundai Kona Electric, and Volvo’s Polestar 2 Dual Motor Long Range EV versions.
No insurance
With the introduction of no Fringe Benefits Tax (FBT) for eligible Electric Vehicles (EVs) and Plug-in Hybrid Electric Vehicles (PHEVs) through a novated lease, these cars are gaining popularity. These vehicles are not only environmentally friendly but also offer a range of other benefits, such as lower running costs and faster charging times.
The new FBT rule allows employees to salary package an EV and cover the cost of running it through their novated lease without paying income tax. It can save them thousands of dollars compared to other car ownership options like traditional finance or purchasing the car outright.
The new FBT rules will make EVs attractive for employees seeking a new lease or company car. However, you should consult your independent legal and financial advisor before making decisions.
No maintenance
With a novated lease, the finance, registration, insurance, fuel and maintenance are all bundled into one monthly payment. It makes budgeting a breeze and keeps your expenses under control. It also allows employees to save on tax compared to traditional car financing, driving an EV novated lease the deal of a lifetime. For more information about the novated lease electric car no FBT, click here.
Novated leases are an alternative to car ownership and include a vehicle in your salary package. They involve entering into a finance lease and novation agreement with your employer to transfer the lease payments and operating costs (fuel, servicing, insurance, registration, roadside assistance) to them for an agreed term. You pay the lease through a salary sacrifice arrangement, deducting it from your pre-tax salary.
ORIX’s national purchasing power means we can offer fleet discounts and additional savings on running costs like fuel, maintenance and tyres at authorised service providers. It means you can enjoy the perks of an electric vehicle while optimising your take-home pay and contributing to a greener Australia. For more information about the novated lease electric car no FBT, click here.
Depending on the car, this could save employees thousands of dollars annually. It also encourages workplaces to shift to EVs and help reduce emissions. For more information about the novated lease electric car no FBT, click here.
No FBT
Since July 2022, FBT will no longer be payable on eligible electric vehicles (EVs) or plug-in hybrid electric vehicles (PHEVs). It means an employee sponsored by their employer for a fully novated lease for an EV or PHEV will save thousands of dollars annually. The gross-up value of an EV or PHEV is calculated using a statutory formula that includes the vehicle’s purchase price with a 20 per cent loading plus an estimate of how much it is used for work and private use – recorded via logbooks.
With no need for petrol, an EV can also help to reduce running costs significantly. And with commercial-grade charging stations throughout Australia, you’ll likely never need to stop for a fill-up again. We can also assist you in setting up a home charging station as part of your novated lease so you can charge in minutes when needed. Our team will walk you through your options and provide a free quote.
No tax
The EV FBT exemption allows employers to sacrifice salary for an electric or plug-in hybrid vehicle without being charged 47% fringe benefits tax (FBT). According to industry figures from significant fleet management company SG Fleet, this could equate to saving up to $9000 per year on calculated FBT payments.
EVs currently eligible for the EV FBT exemption include Tesla Model 3 & Model Y, BYD Atto 3, Kia EV6, Hyundai Kona Electric, and Volvo’s Polestar 2 Dual Motor Long Range EV versions.
No insurance
With the introduction of no Fringe Benefits Tax (FBT) for eligible Electric Vehicles (EVs) and Plug-in Hybrid Electric Vehicles (PHEVs) through a novated lease, these cars are gaining popularity. These vehicles are not only environmentally friendly but also offer a range of other benefits, such as lower running costs and faster charging times.
The new FBT rule allows employees to salary package an EV and cover the cost of running it through their novated lease without paying income tax. It can save them thousands of dollars compared to other car ownership options like traditional finance or purchasing the car outright.
The new FBT rules will make EVs attractive for employees seeking a new lease or company car. However, you should consult your independent legal and financial advisor before making decisions.
No maintenance
With a novated lease, the finance, registration, insurance, fuel and maintenance are all bundled into one monthly payment. It makes budgeting a breeze and keeps your expenses under control. It also allows employees to save on tax compared to traditional car financing, driving an EV novated lease the deal of a lifetime. For more information about the novated lease electric car no FBT, click here.
Novated leases are an alternative to car ownership and include a vehicle in your salary package. They involve entering into a finance lease and novation agreement with your employer to transfer the lease payments and operating costs (fuel, servicing, insurance, registration, roadside assistance) to them for an agreed term. You pay the lease through a salary sacrifice arrangement, deducting it from your pre-tax salary.
ORIX’s national purchasing power means we can offer fleet discounts and additional savings on running costs like fuel, maintenance and tyres at authorised service providers. It means you can enjoy the perks of an electric vehicle while optimising your take-home pay and contributing to a greener Australia. For more information about the novated lease electric car no FBT, click here.