Are you thinking about an electric vehicle but worried about the cost?
If you've been eyeing an electric vehicle (EV) but feel hesitant because of the higher upfront price tag compared to petrol models, you're not alone.
Many drivers are excited about the idea of going electric—lower running costs, reduced emissions, and a quieter, smoother drive—but that initial cost can feel like a roadblock.
Here’s the good news: with the government-backed Electric Car Discount and the added benefits of novated leasing, owning an EV is far more affordable than you might think.
In fact, when you look beyond the sticker price and consider the long-term savings, EVs can quickly prove to be the smarter choice for your wallet.
Let’s break it down and see how EVs compare to petrol cars.
What is the Electric Car Discount?
The Electric Car Discount offers an FBT exemption for all battery electric vehicles (BEVs) under $91,387 (for FY2024-25) that were first made available for use after July 1, 2022.
This means you can run your new EV 100% pre-tax and Fringe Benefits Tax-free, saving you thousands of dollars compared to a conventional car.
This benefit also applies to plug-in hybrid electric vehicles (PHEVs), but only until April 1, 2025. Combined with novated leasing, you can pay for your car lease, running costs, and maintenance using your pre-tax salary, further reducing your taxable income.
EV vs. ICE: A Real Comparison
Let’s compare two similarly priced vehicles to see the real savings:
| Vehicle | RRP (including VIC on-road costs) | Weekly Price (novated lease) |
| ICE Vehicle: Hyundai Santa Fe | $61,031 | From $234 per week |
| EV: Tesla Model Y RWD | $69,032 | From $184 per week |
The Savings Breakdown
At first glance, the Tesla Model Y’s higher price tag ($8,000 more than the Hyundai Santa Fe) might make you pause.
However, when leased through a novated lease with the Electric Car Discount, the Tesla Model Y costs $50 less per week than the Hyundai Santa Fe.
That’s a saving of $2,600 annually, despite the higher RRP!
Both vehicles offer significant tax savings, but the Tesla Model Y’s FBT exemption maximizes your benefits, making it the more cost-effective choice.
Why Choose an EV with a Novated Lease?
An EV isn’t just an eco-friendly option; it’s a financially smart investment. With novated leasing:
- Pay for your lease and running costs pre-tax.
- Maximize your tax savings with the Electric Car Discount.
- Enjoy lower running costs compared to ICE vehicles.
Ready to Make the Switch?
Request a quote today and see how much you can save on your next car.
Whether you choose to switch to a cost-effective electric vehicle or prefer to stick with a dependable petrol-powered car, novated leasing ensures you enjoy maximum savings and financial flexibility.
*Weekly costs quoted are based on an annual salary of $100,000, a 60-month lease term, 15,000 km per year, and VIC registration. Actual savings will vary based on individual circumstances. RRP is based on driveaway pricing, inclusive of VIC registration, on-road costs, and government charges.
The information supplied on this page is provided as an information guide only. It contains Remunerator (Aust) Pty Ltd ACN 074 423 966 interpretation of the current Tax Legislation which is subject to change at any time without notice and should not be relied on as a substitute for legal or other professional advice. Example uses income tax rates effective 1st July 2024.