You can pay for an EV on novated lease via two methods: the Employee Contribution Method (ECM) or FBT-Exempt Method.
The ECM helps offset any FBT you may be liable to pay on your novated lease. By making after-tax as well as pre-tax payments you could reduce the taxable value of your car to $0, and minimise the risk of FBT liability at the end of the FBT year (31 March).
The FBT Exempt Method exempts payment of FBT on eligible electric vehicles up to the Luxury Car Tax threshold of $89,332. This means all novated lease payments are sourced from your pre-tax salary – unlike with ECM, there is no post-tax component if the Luxury Car Tax Value is below the threshold. However, employers will need to include FBT-exempt electric cars as a reportable fringe benefit on an employee's payment summary.
We recommend you seek independent financial advice on what impact this could have to your personal circumstances, including means-tested government benefits. post-tax salary.