novated lease on electric cars

Thinking about a novated lease on electric cars? In Australia, salary packaging an EV lets you pay the lease and running costs with pre-tax dollars, which can seriously trim the damage to your take-home.

Better yet, many eligible EVs are FBT-exempt if first used after 1 July 2022 and priced under the fuel-efficient Luxury Car Tax threshold, making them markedly cheaper than financing the same car yourself.

Your employer can usually claim GST credits on the lease and bundled running costs (often passed on), and you can roll in charging, servicing, tyres and insurance for one tidy payment.

Watch the fine print: vehicles over the LCT cap don’t qualify, and most plug-in hybrids lose the exemption for new arrangements from 1 April 2025; state EV rebates and rego/stamp-duty breaks vary by state and are subject to change.

Do the maths on the residual (balloon) value and term, and compare against a cash or loan purchase—then enjoy the smug quiet of electrons doing their thing.