With the increasing popularity of electric vehicles, the allure of owning one has never been more captivating.
The Northern Territory is currently experiencing a surge in the popularity of electric vehicles. Recent data from the Australian Automobile Association EV Index website reveals that while hybrids remain the top choice among NT residents, Battery Electric Vehicles (BEVs) consistently show growth in sales each quarter. This trend signals a noteworthy shift towards eco-friendly transportation in the Territory, potentially influenced by generous Fringe Benefits Tax concessions.
Curious about available discounts and how you can maximize the benefits? The Australian Federal Government's Electric Car Discount policy is strategically crafted to make owning an Electric Vehicle (EV) both an environmentally conscious and financially savvy choice. The main aim of the policy is to make these cleaner vehicles more affordable, particularly for both businesses and individuals using novated leasing. This change is intended to encourage a shift towards these environmentally friendly vehicle options and align with national emission reduction targets. Which means EV buyers could witness a substantial increase in their savings, with potential combined discounts reaching up to 57%. This initiative not only opens doors for significant savings but also positions EVs as a financially viable option for a broader range of incomes.
Novated leasing is a strategic financial move that puts EV ownership within reach for individuals and businesses alike. With novated leasing offering 100% tax savings and GST relief, it becomes a game-changer in the pursuit of affordable EVs. Novated leasing allows individuals to offset repayments, maintenance, charging, insurance, and registration costs from their pre-tax income, effectively reducing the upfront tax burden. The flexibility of novated car lease options, complete with fixed interest rates and no deposit requirements, provides individuals with choices tailored to their financial preferences. Beyond tax savings, the FBT exemptions on EVs not only benefit businesses by eliminating FBT but also foster a surge in demand for novated leases of electric cars, making them an increasingly attractive salary packaging option.
The beauty of novated leasing lies in its comprehensive approach. Novated lease packages cover a spectrum of expenses, from repayments and charging to tyres, registration, servicing, and insurance. This all-encompassing strategy ensures that the entire cost of ownership is seamlessly managed through pre-tax payments. The process is further streamlined through the ability to claim electricity costs. Public EV charging station expenses can be directly paid from a salary packaging account, eliminating the need for cumbersome claim and reimbursement procedures. Moreover, home charging costs become claimable if a separate meter for vehicle charging is in place.
Beyond the allure of the iconic Tesla, a diverse array of EV models from manufacturers such as MG, Hyundai, Kia and BYD graces the Australian market. With a surge in sales and an expanding national charging network, the landscape is evolving, promising even more diverse offerings.
As Australia embraces a greener automotive future, salary packaging for electric vehicles emerges as a win-win solution—benefiting both the pocket and the planet.
