Supporting Sustainable Choices with Novated Leasing at AANT Salary Packaging 

At AANT Salary Packaging, we are dedicated to helping our novated leasing customers reduce their environmental impact. One significant way to achieve this is by opting for more sustainable and eco-friendly vehicles. Recently, we’ve seen a growing trend of electric vehicles (EVs) purchased under novated leases.

This surge in interest is no surprise, given the Federal Government’s Treasury Laws Amendment (Electric Car Discount) Bill 2022. This legislation, which exempts eligible EVs from Fringe Benefits Tax (FBT), aims to accelerate the adoption of EVs in Australia and encourage manufacturers to import more affordable electric models.

Understanding the FBT Exemption

Effective from 1st July 2022, the FBT exemption applies to fringe benefits provided for eligible zero or low-emission vehicles, provided they are held and used after this date. This includes Battery Electric Vehicles (BEVs), Hydrogen Fuel Cell Electric Vehicles (FCEVs), and Plug-in Hybrid Electric Vehicles (PHEVs).

Who Benefits from the FBT Exemption?

The FBT exemption applies to the personal use of electric vehicles operated by businesses or financed under a novated lease. Unlike vehicles powered by Internal Combustion Engines (ICEs), novated leases on eligible EVs do not include a post-tax component in deductions. This results in significantly lower costs for employees entering salary packaging arrangements for eligible EVs.

Potential Savings with a Novated Lease on an EV

The savings from the FBT exemption can be substantial. According to the Treasurer, a $50,000 EV model could be up to $4,700 cheaper annually under a salary sacrifice arrangement. For more expensive models, up to the luxury car tax limit for fuel-efficient vehicles, the savings could be even higher. Additionally, electric vehicles often have lower running and maintenance costs, making them an attractive and compelling option for drivers.

Our Commitment to Eco-Friendly Leasing

With years of experience in novated leasing, the team at AANT Salary Packaging understand the benefits it brings to our clients, especially with the increasing number of eco-friendly vehicles being leased. We are committed to supporting our clients transition to low and zero-emission vehicles.

Explore Your EV Options with Us

If you’re considering an electric vehicle for your next car, check out our online calculator or give us a call on 08 8980 5799. Let us help you stay informed about the options available to you and support your journey towards a more sustainable future.