FBT exemption for EVs.
Legislation was passed in late 2022 to exempt certain Electric Vehicles (EVs) and Plug-in Hybrid Electric Vehicles (PHEVs) from incurring Fringe Benefits Tax (FBT). This is exciting news for anyone wanting to own an EV, presenting a highly compelling opportunity via salary packaging under a novated lease arrangement.
Will your next car be an EV?
Whether you’ve been thinking about making the switch to an electric vehicle for environmental concerns, or because you’re impressed by the modern features and technology in EVs, our affordable novated lease options combined with the FBT exemption, help make that decision an easier one for you to make.
How much will an EV cost with the FBT exemption?
Thanks to the FBT exemption, owning a qualifying EV or PHEV under a novated lease is now even cheaper!
From around $200 per week we have packages available for EVs that include finance, insurance, registration, servicing, tyres and vehicle charging. Speak to one of our Leasing Consultants today!
If you’ve been thinking about making the switch to an EV, now is the right time with our incredible novated lease options!
With an EV novated lease from Paywise, you can now save thousands. Aside from our all-inclusive electric vehicle lease packages which cover finance, insurance, servicing, and tyres (plus much more!). There’s never been a better time to choose.
Here are some indicative examples of costs and savings of some EV models. Our novated lease packages include vehicle finance, registration, insurance, servicing, tyres and vehicle charging.
Costs based on salary packaging an EV under a novated lease over five years, driving 15,000km per year and an annual income of $120,000.
All figures and images are indicative only and before making a decision you should consult your independent legal, taxation and financial advisor for advice relating to your personal circumstances. Conditions, fees and charges may apply and finance is available to approved applicants only. FBT exemptions for Electric Vehicles (EVs) and Plug-in Hybrid Electric Vehicles (PHEVs) subject to eligibility criteria.
Claiming your EV charging costs.
If you have a novated lease on an electric vehicle with Paywise, you can submit a reimbursement claim for the costs to charge your car.
Use your electricity meter and bill
If you have an App or Meter that can show how much electricity has been used, you can provide that as substantiation, along with your electricity bill to determine the cost. The amount of power and the bill would need to be loaded with your claim as evidence of what you are claiming. If there is sufficient spendable balance in your account, then you will be reimbursed the cost.
Use the ATO’s electric vehicle home charging rate
The other option that has now been published by the Australian Tax Office (ATO) is an assumption of 4.2 cents per kilometre. Looking at the ATO’s fact sheet about this, the commencement date for this method was 1 April 2022.
Attach photos of your odometer reading for the start and end of the period you wish to claim for and attach these with your claim submission. To calculate the amount to claim:
- Determine the number of kilometres you wish to claim for by subtracting the previous odometer reading from the current reading.
- Multiply this amount by 0.042 (4.2 cents).
For example, if your last claim was conducted at 2,000km and you have now driven 3,500km and would like to submit another claim, subtract 2,000 from 3,500 to get a distance travelled of 1,500km. Then multiply this by 0.042 to get a claim value of $63.00.
If it’s your first claim for a brand new EV, the initial reading should be shown on your tax invoice.
Get in touch about an electric car!
If you’ve been thinking about making the change to an electric car, a novated lease from Paywise is a smart choice. Whether you’re wanting to find out if you’re eligible, or need more information on how much you can save by making the switch to an EV with a novated lease, we’re here to help.
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