Labor has scrapped import tariffs for certain models of electric vehicles, making electric cars more affordable. If you want an electric vehicle as an employment benefit, your wishes are Labor’s command as they’ve scrapped FBT for electric vehicles and plug-in hybrids. You can expect to save thousands of dollars thanks to Labor’s electric car discount.
The Australian Labor Government is changing the rules on FBT completely. If you’re an employer that provides workers with an electric vehicle or plug-in hybrid, you won’t have to pay a cent in Fringe Benefits Tax on that vehicle – so long as it’s below the luxury car tax threshold.
In the past, novated leases have been popular for gas-guzzling utility vehicles like 4WDs, utes and twin-cabs. But with electric vehicles seeing a surge in availability, popularity and affordability, there’s absolutely no reason you can’t choose an electric vehicle when entering a novated lease.
Entering a novated lease on your vehicle of choice entitles you to claim fuel costs against your taxable income, saving you a heap of dosh come tax time. High fuel prices may be temporary, but driving a hybrid or EV could be a permanent solution, no matter how high the cost of petrol. You won’t have to buy into ridiculously high petrol prices when your car can run on electricity.
One of the most beautiful things about getting a novated lease is that you can claim all expenses against your taxable income so that, at the end of the financial year, you’ll pay less tax. And what’s one of the main expenses of running a car? You guessed it. Petrol. There are plenty of ways of keeping track of your fuel spending when you’re on a novated lease.
You can actually service your own car at whichever mechanic you like. All you have to do is let your novated lease provider where you’re taking your car for a service, and let your mechanic know that your car is on a novated lease, and it’s incredibly easy to tee up from there.
