How does the discount for eligible EVs compare to taking out a standard novated lease for savings?
Taking out a novated lease on an eligible electric vehicle differs from a fuel-powered vehicle because there is no post-tax component to deductions. This could save employees thousands – potentially making eligible EVs more affordable to own and operate!
Let’s take an employee who earns $90,000 per year. They are tossing up between leasing a BYD ATTO3 worth around $50,000 and a Mazda CX3 worth around $30,000.
With the Mazda lease, they could save $14,200 in tax over the lifetime of a 5-year lease. But through the Electric Car Discount, the potential tax savings would be greater by leasing the BYD. A 5-year lease on a BYD ATTO3 could save this employee $34,400 in tax.
Best of all? Both cars would cost $190 per week, even though they have different driveaway prices. This is also thanks to the Electric Car Discount.