Do I need to worry about FBT if I have a novated lease?
In most cases, no. The leasing provider or your employer manages the FBT obligations through a system called the Employee Contribution Method (ECM), which balances tax liabilities within the package.
What is the FBT exemption for EVs?
As of 1 July 2022, eligible zero or low-emission vehicles under the luxury car tax threshold are exempt from FBT when provided via novated lease. This significantly enhances the tax savings potential. This exemption will be in place until mid 2027, and depending upon the government’s review it might be extended, amended or removed. But … <a href="https://www.fingo.com.au/faq/what-is-the-fbt-exemption-for-evs/">Continued</a>
How does GST work with a novated lease?
GST is typically claimed by the lease provider or employer (if applicable). As an employee, you benefit from pre-tax deductions that are GST-inclusive, meaning you’re not out of pocket for the GST.