Electric Cars

An electric vehicle (EV) is a vehicle that uses an electric motor to power it's drive.

There are three main types of EVs, being:

1. Hybrid electric vehicles
2. Plug-in hybrid electric vehicles
3. Battery electric vehicles

Battery electric vehicles are what people generally think of when hearing electric vehicle. These are 'ell-electric' vehicles that are powered exclusively by a battery, for example Tesla vehicles.

A hybrid vehicle uses both a petrol engine and electric motor to power a car.

There are two main types of hybrid vehicles:

1. Hybrid Electric Vehicle

The electric and petrol engine work together to reduce fuel consumption. These cars cannot be plugged in to charge the battery. Instead, the battery is charged when driving through regenerative braking.

2. Plug-in Hybrid Electric Vehicle (PHEV)

Plug-in hybrid electric vehicles are also powered by electric and petrol engines that work together. The main difference is, PHEVs have a larger and more powerful battery packs. Drivers can choose between driving in electric-only mode or with the petrol motor. To battery is charged through regenerative braking or, as the name suggests, by plugging it in.

Yes, you can claim on the recharging costs of your electric vehicle and include them in your salary package. At this stage, FBT legislation has not been updated to reflect the differences between a combustion engine car and an EV. 

As such, our interpretation at this stage is that electricity costs can only be claimed if you can uniquely identify the electricity used and the specific cost. For further information, talk to our novated leasing specialists.

The purchase of an EV charger is a capital cost, therefore would be added to the purchase price of the EV.

We're seeing more car manufacturers introducing EVs into their product lines. In fact, almost every car brand has identified electric as the future of motoring.

Here's a round up of when each manufacturer has identified when they are transitioning to an electric fleet:

For information on any car brands not listed here, please contact our novated leasing specialists who will be happy to assist you in any of your enquiries.

The answer to this question is very subjective and depends on an individuals circumstances and personal preferences.

It's clear that the future of motoring is electric and a big part of the motoring public will be using electric power in some form.

But how do electric cars compare to their petrol counterparts now?

We investigate this question in our article here.

Under the Electric Car Discount Policy, eligible EVs and hybrid cars are exempt from FBT. Employers are still required to calculate and provide a reportable fringe benefit amount (RFBA) to employees.

When novated leasing an EV, the additional RFBA may result in an add-on to an employee's relevant income calculation. This has the potential to affect employees with any means-tested Government entitlements such as Family Tax Benefit support, childcare subsidies, HECS debt, and Medicare levy surcharge.

To understand if and how this will directly impact you, please contact Remunerator.