Novated Leasing - Electric Vehicles
Thinking about an electric vehicle? Think it's time to talk to Maxxia.
The Electric Car discount could save you thousands through a novated lease
There’s never been a better time to get into an electric vehicle, and there’s never been a better way than through a novated lease with Maxxia.
With the Australian Government’s Electric Car (EV) Discount, taking out a novated lease on an EV just got a whole lot cheaper. So, if you were thinking about making the switch to an eligible electric vehicle, your time is impeccable.
As one of Australia’s largest novated lease providers, we’re ready to help get you into an electric car of your choice. We’ve geared up our systems and are working closely with key suppliers to help you make a confident choice – for yourself and the environment.
The New EV Discount: A Recap
Novated leases are required by law to have a certain amount of Fringe Benefits Tax be paid – it’s why pre- and post-tax payments are needed. With the Electric Car Discount however, a novated lease on an eligible EV is FBT exempt, meaning you don’t pay any post-tax contributions – for EVs retailing up to the Luxury Car Tax threshold of $91,387.
How Much Could You Save?
Let’s say you earn $90,000, and you’ve decided an Tesla 3 is for you, driving it 15,000 kilometres a year over a five-year lease. Your estimated net benefit under the EV Discount is $21,420* over the life of the lease.
Common Myths: Eco-Friendly Vehicles
We respond to five of the most common misconceptions about Electric Vehicles.
"They’re expensive"
While the upfront costs of EVs are currently more expensive than conventional petrol vehicles, powering an EV costs an estimated 70 per cent less per kilometre, according to the Electric Vehicle Council.
EVs have lower running costs than regular petrol-powered cars, given they have no engine, transmission, head gasket or spark plugs. Consequently, you likely won’t have to service an EV as regularly.
Battery EVs don’t require petrol or diesel. For context, the average Australian drives 15,000 kilometres a year, spending more than $2,000 on fuel. It’s estimated an EV also travelling 15,000 kilometres costs around $600 per year – that’s a $1,400 annual saving.
According to the Electric Vehicle Council of Australia, current EVs have an average battery range of nearly 480km but with ongoing technology advancements some new models can get to 550km on a single charge.
With the average Australian driving 38 kilometres a day, an EV owner who carries out short trips can go for 10 or more days without needing to recharge.
Most new EV sales include an entry-level charger which simply connects to a normal electricity power outlet that you would have at home. These basic chargers are adequate for maintaining a full charge for many people doing a daily work commute or trip to the shops.
Public charging solutions are available across Australia. The Electric Vehicle Council’s website lists all available charging stations around the country, including the type of chargers.
Charging times are decreasing as technology changes and more EVs hit the market. Entry-level chargers supplied with EVs can take up to 30 hours to fully charge a vehicle; this timeframe reduces to overnight with higher capacity chargers available at an optional cost.
Public chargers can be much faster – with super-charge stations adding up to 300 kilometres of range in 10 to 15 minutes, and regular stations often doing the job in less than five hours.
With the convenience of home-charging – either overnight or during periods of the day that you don’t need to drive – the need for faster chargers may not be a pressing requirement for some people.
FAQs
Got more questions about salary packaging an eco-friendly car? We’ve got you covered.
What are the potential benefits of Electric Vehicles?
Electric Vehicle Offers
Tapping into Maxxia’s huge buyer network to take out a novated lease on an eligible electric vehicle is a win-win: not only do you look after you and enjoy the convenience and potential financial savings of novated leasing, you’ll also be doing your bit for the environment.
The features and potential benefits of a novated lease on an EV with Maxxia.
Maxxia Marketplace
Don’t limit yourself to one brand’s new-car deals. Leasing an electric car through Maxxia gets you access to some of the best deals and manufacturers across the country. You could also save GST upfront on the price of the car and some of your running costs.
Tax Effective
With the Electric Car Discount, payments on eligible electric vehicles up to the Luxury Car Tax threshold of $91,387 are fully sourced from your pre-tax salary. This could reduce your taxable income and potentially save you thousands
Budget Convenience
Say goodbye to bill-shock. We’ll work with you to draw up a manageable budget covering all your lease repayments and running costs in one regular payment. No more bill-juggling!
Transparency
The Maxxia App lets you check your balances, change your details and allows on-the-go flexibility with claiming.
Maxxia Advantage
Maxxia does the heavy lifting for you. We can source your EV and negotiate a great price, manage the paperwork and arrange the finance and any insurances you may require.
Dedicated Support
Enjoy dedicated access to our MyCar Customer Service and Maintenance teams.
*Novated Lease example: The estimated potential tax benefit is over the full-term of the lease (5 years) exclusive of GST and is based on the assumption that you would salary package using Employee Contribution Method (ECM) for the petrol vehicle and Fringe Benefits Tax Exempt Method for the electric vehicle. The Fringe Benefits Tax Exempt Method is only used for eligible electric vehicles under the luxury car tax threshold of $91,387. Payment includes: Your lease payments, fuel or charging, registration, tyres, insurance, scheduled servicing, fleet management fee and have been calculated on a GST exclusive basis on the assumption that your employer will be entitled to GST input tax credits and that they will pass on the benefit to you. The estimated annual benefit will vary depending upon salary, employment circumstances, selected benefits and applicable tax treatment. The example assumes you earn a gross annual salary of $90,000, a 5-year lease term, an annual distance travelled of 15,000kms, a 28.13% residual value and the EV is an eligible zero or low emissions vehicle that was first held and used on or after 1 July 2022. GST is payable on your ECM contributions. State Stamp Duty rates apply. PAYG tax rates effective 1 July 2024 have been used.
Things you need to know: Maxxia is an approved novated lease supplier on the NSW Health Administration Corporation Novated Leasing Panel. Maxxia is one of three approved suppliers of Novated Leases to NSW Health. This general information doesn’t take your personal circumstances into account. Please consider whether this information is right for you before making a decision and seek professional independent tax or financial advice. Conditions and fees apply, along with credit assessment criteria for lease and loan products. The availability of benefits is subject to your employer’s approval. Maxxia may receive commissions in connection with its services. Actual vehicle prices are based on specific vehicles and accessories, prices and savings may vary based on additional options selected with vehicle. Maxxia does not act as your agent or representative in respect of the purchase of any vehicle. Maxxia does not provide any advice or recommendations in relation to the purchase of any vehicle. Any FBT liability incurred as a result of Novated Leasing Agreements will be the employee’s responsibility. All calculations are for illustrative purposes only and are based on the income tax rates from July 1 2024. The 50% rate for Share of Savings has been applied for all saving examples. As per your employer’s policy, your savings from salary packaging will be shared with your employer. Share of savings will be automatically applied to your salary packaging arrangement. Please contact your salary packaging administrator to confirm the share of savings rate that applies to you. Your actual savings will depend on your income tax bracket, the GST processing method nominated by your employer, administration fees payable under your employer’s salary packaging plan and your personal circumstances. Due to high demand and stock limitations there may be some vehicles that do not meet the delivery deadline for the EV Discount. Customers are advised to confirm delivery timelines before proceeding with their order.