Australian electric vehicle sharing platform evee has launched a new program to help people get into an EV sooner using novated leasing.
A novated lease is an agreement between an employer, an employee, and a financing company. For cars, novated leases generally bundle up car repayments with other running costs such as tyres, servicing, insurance and registration. These costs are then deducted from employee’s pre-tax pay, reducing taxable income.
evee COO Kirsty Dare believes many Australians aren’t aware of how much more affordable EVs are with novated leasing.
“There is no cost to an employer to set up a novated lease program for their staff, but you’re not able to get a novated lease unless you are an employee at a company.” says Dare.
Employees make lease payments to the employer via salary sacrifice arrangements, thereby reducing their taxable income. While fringe benefits tax is commonly applicable to such salary packaging arrangements, the federal government’s recent Electric Car Discount Bill means salary-sacrificed EVs in Australia are exempt from FBT, unlike ICE vehicles (Note: FTB exemption only applies to EVs under $89,332).
“The savings are immense” says evee COO Kirsty Dare commenting on the benefits for EVs.
“You’d be mad to get an ICE car with a novated lease”
evee novated lease calculator highlights savings for EVs
The Canberra based start up has created a cost savings calculator so people can see how much they can save through EV novated leasing.
Using your annual salary, the vehicle price and an estimate of your annual kilometres of driving, the calculator will show your novated lease payments including fuel/charge, maintenance, finance, registration and insurance costs.
The calculator also provides an estimate of your annual tax savings through novated leasing, which are significant when opting for an EV.
As part of their mission to get more EVs on Australian roads, evee is also providing $200 cashback for customers who lease EVs through their program plus an additional $300 if you then list your car on the evee platform and complete a booking.
Daniel Bleakley is a clean technology researcher and advocate with a background in engineering and business. He has a strong interest in electric vehicles, renewable energy, manufacturing and public policy.