Since the introduction of the Electric Car Discount, we've seen new car buyers making the change to electric power. For those that are hesitant to convert to full electric power, plug-in hybrid cars (PHEVs) offer a compelling alternative, balancing financial benefits with sustainability, presenting an attractive option for new car buyers.
Benefits of PHEVs:
- Seamlessly switch between electric and petrol modes. This helps diminish concerns about electric charging infrastructure and range anxiety.
- Electric Car Discount eligible on models purchased for up to the luxury car tax threshold for fuel efficient vehicles ($89,332 FY23/24). This offers a Fringe Benefits Tax (FBT) exemption to drivers with a novated lease.
Even if you are hesitant towards electric vehicles, PHEVs provide a unique alternative where you can still take advantage of the Electric Car Discount whilst driving with petrol or diesel. This way you can still get the FBT exemption whilst only using your PHEV as a normal petrol or diesel vehicle.
Let's Compare: Mitsubishi Outlander vs Mitsubishi Outlander PHEV:
Let's look at why PHEVs are so attractive to purchase on a novated lease by comparing the Mitsubishi Outlander petrol model to the equivalent PHEV model.
Given the PHEV model's eligibility for the Electric Car Discount, purchasing it with a novated lease allows for pre-tax salary deductions exclusively, resulting in much higher income tax savings compared with novated leasing a petrol equivalent vehicle.
| Mitsubishi Outlander Petrol | Mitsubishi Outlander (PHEV) | |
| Recommended Retail Driveaway Price (RRDP) | $52,640 | $69,290 |
| Weekly Price on Novated Lease | From $172 per week + running costs. | From $133 per week + running costs. |
The above comparison demonstrates the impact of the electric car discount and the savings it offers Australian drivers. Despite the higher purchase price of the PHEV model, its repayments are lower than those of the petrol model as they are 100% pre-tax and FBT-free. The income tax savings for the driver also increase, showcasing the significant advantage of choosing the PHEV option.
PHEVs through novated leasing offers a win-win: lower repayments and significant tax savings compared to petrol cars. With the Electric Car Discount's FBT exemption, now is the time to consider the financial and environmental benefits of PHEVs for your next vehicle.
Still not convinced?
*Please note weekly price excludes car running expenses. Pricing varies subject to personal circumstances. Quoted pricing is based off annual salary of $80,000, annual kms 15,000, and finance term of 60 months. For more information talk to a Remunerator Novated Leasing Specialist.