Novated Leasing a Plug-in Hybrid or Electric Vehicle with Maxxia
Did you know that during the 20th century electric and hybrid cars actually outnumbered petrol-powered vehicles? In fact, in 1900 it was electric vehicles that accounted for a third of all cars on the road in the USA, and it was only when the Ford Model T came along that a significant blow was dealt to the electric car in terms of cost and capabilities at that time.
It’s safe to say that things have now swung back greatly in the opposite direction and the electric vehicle or ‘EV’ is back. Concerns about the environment have never been more important to people and the cost of manufacturing EVs has reduced with jumps in innovation from the likes of Mazda, Toyota, Nissan and Tesla.
Today, there is an ever-growing number of Maxxia customers leasing electric and hybrid vehicles – and with the passing of the Treasury Laws Amendment (Electric Car Discount) Bill 2022 through Australian Parliament, this looks set to continue.
Common electric vehicle questions:
What is the Electric Car (EV) Discount, and could it save me money?
The Treasury Laws Amendment (Electric Car Discount) Bill 2022 passed through Federal Parliament in December 2022. The policy aims to make electric cars cheaper for Australians and, in turn, increase the take-up of low- and zero-emission vehicles.
Novated leases are required by law to have a certain amount of Fringe Benefits Tax (FBT) be paid – it’s why pre- and post-tax payments are needed. With the EV Discount, however, a novated lease on eligible low- and zero-emission cars is FBT-exempt, up to the Luxury Car Tax (LCT) threshold of $89,332. This means no post-tax payments.
Eligible cars (up to the LCT threshold) include battery electric vehicles (BEVs) and hydrogen fuel cell electric vehicles. Plug-in hybrid vehicles (PHEVs) are also eligible, but only until 1 April 2025. However, pre-existing eligible novated lease arrangements on such vehicles can continue as FBT exempt until the end of the lease period.
The policy also exempts the 5% import tariff that applies to some imported EVs.
Is my novated lease any different with an electric vehicle?
Yes… and no. A novated lease with an electric vehicle really only differs in the same ways that these cars differ from their petrol counterparts. The main one for pure EVs of course is fuel; you won’t have a fuel card for petrol, but you are able to claim the cost of charging up at a station.
If you have a charging station at home, you can claim the cost of this electricity as well; the charging station will need to be installed on its own smart meter to enable this usage to be claimed accurately. Any costs associated with having access or being connected to the electricity however are not able to be claimed, and this also includes installation of the charging station itself. It’s important to note that you cannot package the costs of a third-party charger that you purchase in addition to the vehicle itself.
Are my running costs the same as any other lease?
Fuel aside, electric vehicles still require registration, maintenance and tyres. It is worth noting that with electric and hybrid vehicles, scheduled servicing and parts can be more costly in comparison to petrol vehicles, but it all depends on the make and model.
Are there plenty of charge stations?
The amount of charging stations has exploded over recent years and there are plenty of online resources that map out where each one is. The Electric Vehicle Council of Australia website lists all the charging stations around Australia, the type of chargers – from entry-level to DC Superchargers – and leading charging infrastructure providers.
What sort of vehicles can I choose from?
There’s a huge range of electric and hybrid vehicles available to novated lease with Maxxia, for all budgets and lifestyles. Here are some examples:
- Toyota – Rav4
- Lexus – CT 200h Hybrid
- Mitsubishi – Outlander
- Honda – CIVIC
- Tesla – Model 3
- Nissan – LEAF
- Subaru – Forester
- Hyundai – KONA
- Mercedes Benz – C200
What is the difference between electric vehicles and plug-in hybrids?
EVs are solely electric vehicles, meaning you plug them into a charger, and they use only available battery power to drive. Plug-in-hybrid vehicles – or PHEVs – have petrol motor and electric motor components; once the available battery power is used up, they switch to the motor.
EVs and novated leasing with Maxxia: Good for you and the environment
Novated leasing is all about the convenience of having all your budgeting and running costs taken care of by Maxxia, while also enjoying the potential tax savings that come with utilising your employee benefit. As electric vehicles become more and more popular it’s nice to know that your novated lease could also benefit the environment as well as your hip pocket!
Are you ready to take charge of your driving future with a novated lease on an electric vehicle? Your timing is good. Get in touch with us online or call us on 1300 123 123 and we’ll take you through your options.
This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.