At Maxxia, we’re all about supporting our novated leasing customers to help minimise their environmental footprint. In fact, it’s something we can all be “motorvated” about.
One of the ways you can minimise your impact is by choosing a more sustainable, eco-friendly vehicle to drive. Another thing that “motorvates” us is that in recent years, the number of Maxxia customers leasing eco-friendly vehicles has continued to grow.
If you’re considering an electric or hybrid for your next car, why not put our expertise to the test and see how we can help you. If you’re not quite ready yet – we thought we’d get back to basics, so you have all the information you need to make a confident choice.
What is an Electric Vehicle?
An electric vehicle (EV), as defined by the Electric Vehicle Council, is one that runs at least partly on electricity. While there are several types of EVs, the most common are battery electric vehicles (BEVs), which use no petrol and run solely on the charge of electricity through batteries.
There are also plug-in hybrid vehicles (PHEVs), which use an electric motor foremost but have the ability to tap into a petrol-fuelled engine when the battery runs out of power. Hybrid electric vehicles (or HEVs) are similar to PHEVs, but have a smaller battery and therefore have very limited capacity before switching to the engine.
BEVs are easy to spot as they don't have an exhaust pipe. This is because the battery powers the car's motor instead of an engine.
While electric vehicles (EVs) currently account for less than 2% of the overall new car market, trending in recent years combined with industry forecasting suggest this may change dramatically in the coming years.
As Australia’s market leader for novated leasing, we know all there is to know about salary packaging a car – and the potential financial and convenience benefits it could bring. Of the almost 40,000 customers we service each year, a growing number lease electric vehicles – and with increased environmental awareness and government policy changes on EVs, we expect this to continue.
Potential Tax Savings
The Federal Government’s proposed ‘Electric Car Discount’ policy – which is currently scheduled to begin on 1 July 2022 but still needs to be legislated – provides an exemption from the requirement to pay fringe benefits tax (FBT) on some electric vehicles that fall below the luxury car tax threshold for low-emission vehicles ($84,916), as well as an import tariff exemption that removes a 5% tax on many imported EVs.
The exemption from FBT only applies to the personal use of electric cars operated by businesses – or financed under a novated lease. It does not apply to private buyers of electric vehicles. This means a novated lease on an EV differs from that of a fuel-powered vehicle, because it is fully FBT exempt.
For more information on the Electric Car Discount and what it could mean for you, read more here.
Budget Convenience
Say goodbye to bill-shock. A novated lease on an EV offers the budget convenience of having the car’s finance repayments and running costs – including registration, insurance and servicing – bundled into one regular pre-tax* payment across the course of the year.
*Up to the Luxury Car Tax threshold of $84,916.
Potential Running Cost Savings
While the purchase price of most EVs is higher than fuel-powered vehicles at present, you could significantly reduce your running costs overall. With no petrol or diesel engine, and therefore no fuel costs, the Electric Vehicle Council estimates that a city-based driver of a typical SUV, driving 15,000 kilometres per year, could save more than $135 per month on running costs.
EV Education
At Maxxia we believe EV educational information is important. We will continue to work with industry groups such as NALSPA (National Automotive Leasing and Salary Packaging Association) and the Electric Vehicle Council, the national body for the electric vehicle industry in Australia, to provide you with the latest EV updates.
From range considerations and claiming charging costs, to insurance and servicing, head along to our FAQs page for answers to our most commonly asked questions.
