The Australian Government’s Electric Car Discount: Which Cars are Eligible?
The EV Revolution is here – and more people than ever before are making the switch to electric and plug-in hybrid electric vehicles.
Key to the Federal Government’s ‘Powering Australia’ plan is a national strategy that aims to boost the supply and uptake of electric vehicles as the country looks ahead to a target of zero emissions by 2050.
With a growing number of new makes and models available, charging infrastructure on the rise, and the government’s Electric Car (EV) Discount on novated leases, there's never been a better time, or way, to save on an EV.
And RemServ, one of Queensland’s largest novated leasing providers, can help make it happen for you.
The EV Discount in Summary
Eligible battery-electric (BEVs), hydrogen fuel cell electric vehicles (FCEVs) and plug-in hybrid electric vehicles (PHEVs), up to a total cost of $89,332, are exempt from Fringe Benefits Tax (FBT) under the discount.
The vehicle must be new, and not used before 1 July 2022.
This means that a novated lease on an EV differs from that of a fuel-powered vehicle, because there is no post-tax component to payments – which could mean thousands of dollars in annual savings.
It’s worth noting that plug-in hybrid vehicles are only eligible until 1 April 2025, although those on pre-existing leases will remain FBT-exempt up until the end of their lease.
The government has also removed the 5% import tariff exemption that applied to some imported EVs.
“A novated EV lease has the potential to provide a significant financial saving directly to employees, which they are likely to not be able to achieve outside of their employment arrangement,” RemServ’s managing director Kylie Chambers says.
“For example, an employee earning $80,000 per annum who takes out a novated lease on a MG ZS Essence EV, could save more than $10K over the life of a five-year lease.”
“With the EV Discount, their life of lease savings could increase to more than $26K – a difference of over $16,000.”
Which Cars Are Eligible?
Here’s a (growing) list of cars currently eligible for the FBT exemption:
- BMW iX1
- BYD Atto 3
- Cupra Born
- Cupra Formentor VZe
- Cupra Leon VZe
- Ford Escape PHEV
- Hyundai Ioniq 5
- Hyundai Kona
- Kia EV6
- Kia Niro EV
- Kia Sorento PHEV
- Lexus ux300e
- Mazda MX-30
- Mercedes-Benz A250e
- Mercedes-Benz EQA
- MG HS+ PHEV
- MG ZS EV
- Mini Cooper SE
- Mini Cooper Countryman PHEV
- Mitsubishi Eclipse Cross PHEV
- Mitsubishi Outlander PHEV
- Nissan Leaf
- Peugeot 3008 PHEV
- Peugeot 508 PHEV
- Polestar 2
- Tesla Model 3
- Tesla Model Y
- Volvo C40 Recharge
- Volvo XC40 Recharge
*Courtesy of the Electric Vehicle Council.
Thanks to the Electric Car Discount, it’s a great time to join the EV Revolution. And with the help of RemServ, you could feel confident you’ve made the right choice in making your money work for you.
Take charge and contact us today to find out how!
Disclaimer: This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.