Understanding the significance of FBT for electric vehicles can significantly impact your decision to switch to cleaner energy transportation. The financial incentives associated with the EV FBT exemption are designed to encourage individuals and businesses to make environmentally friendly choices. But what exactly does this mean for you?

Vehicles that benefit from FBT exemption for EV policies produce lower emissions than conventional petrol and diesel cars. The government offers these exemptions as a part of its commitment to reduce environmental impact and promote sustainable practices. By choosing an electric vehicle, you contribute to a greener planet and enjoy substantial tax savings.

The FBT exemption means that when your employer provides you with an electric vehicle for personal use, the benefit you receive is exempt from the Fringe Benefits Tax. This exemption can lead to significant savings on your tax bill, making electric vehicles an even more attractive option.

Furthermore, the exemption encourages employers to include electric vehicles in their fleets, which amplifies the positive environmental impact across the business sector. This initiative helps reduce corporate carbon footprints and enhances the company’s green credentials among consumers and stakeholders.

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fbt exemption electric vehicles

When selecting a vehicle under a corporate or personal finance arrangement, the benefits of choosing an FBT exemption can significantly outweigh traditional car ownership paths. Understanding the drawbacks of not utilising the novated lease FBT benefits can help clarify why this approach is innovative and essential for cost-effective and environmentally responsible driving.

Increased Tax Burden: Without the benefits of an FBT exemption for cars, employees and employers face a higher tax burden. Traditional vehicle benefits are subject to Fringe Benefits Tax, which can significantly increase the cost of owning and operating a vehicle. Opting for a vehicle with an electric car FBT exemption reduces this tax, making electric cars more affordable in the long run.
Higher Operating Costs: Vehicles without FBT exemption often have higher running costs. These include fuel, maintenance, and other operational expenses accumulating over time. Electric vehicles, particularly those under novated lease arrangements, have lower operational costs due to their efficiency and fewer mechanical complexities.
Missed Incentives: Choosing a non-FBT-exempt vehicle means missing out on various governmental incentives designed to promote environmentally friendly driving. These incentives reduce the initial cost of purchasing an electric vehicle and support ongoing savings on operational expenses.
Environmental Impact: By not opting for an FBT exemption, individuals and corporations miss the opportunity to contribute positively to environmental sustainability. Electric vehicles significantly reduce carbon emissions compared to their gasoline counterparts, aligning with global efforts to combat climate change.

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Novated Lease FBT

Choosing a novated lease FBT-exempt vehicle, especially an electric one, brings various financial and operational benefits that can significantly enhance individual and corporate vehicle management strategies. Let’s explore the compelling features and unique selling points of FBT exemption for electric vehicles and how they align with modern driving needs.

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Key Features of Novated Lease FBT Exempt Vehicles:

Significant Tax Savings: One of the standout features of opting for an electric vehicle under a novated lease is the FBT EV exemption. This benefit dramatically reduces the vehicle’s taxable value, allowing employers and employees to enjoy lower fringe benefits and tax liabilities, translating into significant cost savings.
Enhanced Cash Flow: Reducing tax burden through the EV exemption allows for better cash flow management. Employees can maximise their take-home pay while enjoying the perks of driving a high-quality electric vehicle.
Sustainability Incentives: Electric vehicles are at the forefront of automotive environmental advancements. By choosing an FBT exemption, you contribute to reduced carbon emissions and support global environmental goals, enhancing personal or corporate sustainability credentials.
Comprehensive Cost Management: The all-encompassing nature of a novated lease arrangement covers the vehicle’s finance, insurance, maintenance and fuel costs. When these vehicles are FBT exempt, the savings are even greater, as the tax benefits extend across all these aspects, making it a financially smart choice.
Wider Accessibility: The financial incentives associated with FBT exempt novated leases make higher-end electric vehicles more accessible to a broader range of drivers. This accessibility helps democratise the benefits of advanced vehicle technologies.

Opting for an FBT-exempt novated lease is not just about enjoying tax benefits; it’s about embracing a cost-effective, environmentally friendly and technologically advanced driving option.

Which Cars Qualify for FBT EV Exemptions? Understanding Your Options

When considering a novated lease for an electric vehicle, one of the key questions is: what cars are eligible for FBT EV exemption? This question is crucial as it determines the potential EV FBT savings and the cost-effectiveness of choosing an electric vehicle (EV).

The eligibility for FBT concessions for EVs typically includes vehicles that meet specific environmental standards, primarily those that produce lower emissions than conventional vehicles. This comprises a wide range of electric vehicles and plug-in hybrids designed to operate with zero or reduced emissions.

Key Points on Eligibility and Savings:

Zero-Emission Vehicles:
- Fully electric cars that produce zero emissions are the primary candidates for FBT EV exemption. These vehicles are not only eligible but are often prioritised within government policies to reduce environmental impact.
Plug-In Hybrid Electric Vehicles (PHEVs):
- Plug-in hybrids can also qualify for FBT concessions, particularly if they demonstrate a significant ability to reduce emissions compared to traditional vehicles. The eligibility often depends on the proportion of distance they can cover using electric power alone.
EV FBT Savings on a Novated Lease:
- Choosing an eligible EV can result in substantial EV FBT savings on a novated lease. The savings stem from reduced fringe benefits tax liabilities, which can significantly lower the overall leasing costs. This makes electric vehicles highly attractive from both a financial and an environmental standpoint.
Legislative Incentives:
- Governments often provide additional incentives for adopting electric vehicles, including lower registration fees, reduced stamp duties and direct rebates or tax credits. These incentives are designed to complement the FBT concessions for EVs, further enhancing the appeal of electric vehicles.

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Maximise Your Savings with EV Novated Lease Tax Advantages

Choosing an electric vehicle (EV) through a novated lease has significant tax advantages that can significantly enhance your financial and environmental goals. We specialise in providing comprehensive support to help you fully leverage the benefits and navigate the intricacies of the FBT exemption threshold for EVs.

How We Assist You with EV Novated Lease Tax Advantages:

Understanding the FBT Exemption Threshold: Electric vehicles often benefit from a higher FBT exemption threshold which can translate into substantial tax savings. We guide you through the specifics of these thresholds and help you understand how they apply to your chosen vehicle.
Maximising Tax Savings: By taking advantage of the FBT exemption threshold, you can lower the taxable value of your vehicle benefits. This reduces the amount of FBT you or your employer may be liable for and optimises your salary packaging to include more tax-effective benefits. Our experts are skilled at structuring these arrangements to maximise your tax savings.
Comprehensive Cost Analysis: We provide a detailed cost analysis showing how the EV novated lease tax advantages play out over your lease term. This analysis includes comparisons with traditional vehicle leasing to highlight the financial benefits of choosing an EV.
Regular Updates on Legislative Changes: Tax laws and benefits regarding electric vehicles can change. We update you on any legislative adjustments affecting the FBT exemption threshold, ensuring you’re always in the best position to benefit from available tax incentives.
Personalised Consultations: Each client’s situation is unique, so we offer personalised consultations. During these sessions, we discuss how to effectively apply the tax advantages in your context, ensuring that every strategy is tailored to your personal and financial circumstances.

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frequently asked questions

what is FBT and how does it relate to my novated lease EV program?

fbt, or Fringe Benefits Tax, is a tax that employers pay on certain perks or benefits given to their employees beyond their regular salary. when you have a novated lease with Fingo, especially for electric vehicles (EVs), you could be eligible for FBT exemptions or reductions. this means potential tax savings for both you and your employer. fingo's team is adept at guiding you through this process, ensuring you maximize the benefits of your EV novated lease in relation to FBT.

why should I consider a Novated Leasing EV?

electric vehicles offer numerous benefits, including reduced carbon emissions, potential savings on fuel, and lower maintenance costs. coupled with Fingo's novated lease structure and potential FBT advantages, you can enjoy both financial and environmental benefits.

are all electric vehicles eligible for FBT exemptions under a novated lease?

while many electric vehicles are eligible for FBT exemptions or reductions, the specific list and criteria can change based on government regulations. fingo stays updated on these policies to guide you on the most beneficial choices.

can I choose any EV model for my novated lease EV with Fingo?

while Fingo offers a wide range of EV models for novated leasing, availability might vary based on market conditions. we're committed to helping you find an EV that suits your preferences and needs.

why choose Fingo for Novated Leasing Electric Vehicle?

fingo offers a comprehensive novated leasing package tailored to EVs. this includes not only the vehicle itself but also aspects like charging solutions, insurance, and maintenance. with our expert guidance, you're assured of a seamless transition to electric driving.

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benefits of a novated lease for employees

no gst on the purchase price
no deposits or up-front costs
save on your vehicle running and maintenance costs
save thousands in income tax
take your vehicle with you if change jobs
just one easy monthly payment for all your vehicle expenses

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benefits of a novated lease for employers

cheaper and easier to manage than providing company cars
provide a more attractive remuneration package to potential and existing customers
no residual risk
lower payroll tax and workcover premiums. no surplus vehicles if an employee changes jobs
we take care of arranging everything so you can focus on important business matters

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EV FBT Exemption

fbt exemption electric vehicles