More EVs Eligible for Novated Lease and EV Discount Thanks to Tax Changes
The EV Revolution just got a whole lot sweeter, thanks to the ATO.
As of 1 July 2023, the Luxury Car Tax (LCT) threshold increased for fuel-efficient vehicles. LCT is a tax of 33% paid on every dollar above the threshold on the retail price of imported vehicles.
The threshold has now been raised for the 2022/23 financial year from $84,916 to $89,332 for fuel-efficient vehicles, including EVs and plug-in hybrids.
Increasing the LCT threshold by $4,416 might not seem like a lot compared to the price tag on many EVs, but this change is great news for anyone looking to take advantage of the Australian Government’s EV Discount.
LCT, FBT and Novated Leases
In 2022, Parliament introduced the Federal Government EV Discount. This discount removed any Fringe Benefits Tax (FBT) payable on electric vehicles that have a retail value under the LCT threshold. The only way for individual drivers to access the EV discount is through a novated lease.
Now that the LCT threshold has increased for the 2022/23 financial year, more EVs have become eligible for the discount. If you’ve been eyeing off an EV in the $80-90k range (below $89,332), you’ll be glad you waited until now as you may be able to maximise your savings.
The threshold change also means there’s the opportunity to make more modifications to vehicles while keeping the total cost below the LCT threshold.
According to carsales.com.au, these are just some of the car models that are now eligible for the EV Discount:
- Hyundai IONIQ 5
- Hyundai IONIQ 6 AWD Epiq
- Kia EV6 GT-Line
- Mazda CX-60 Azami PHEV
- Volkswagen Toureg 170TDI
*Vehicle prices valid as of July 2023.
Read about the existing eligible EVs in our other article here.
Speak to the Novated Lease EV Experts
As one of Australia’s largest novated leasing providers, Maxxia is leading the charge when it comes to electric vehicles on novated lease. We’ve partnered with electric vehicle suppliers to deliver EV expertise and to assist you with sourcing your dream EV at a potentially great price.
Contact us today to join the rEVolution!
This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.
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