Novated Leasing an Electric or Plug-in Hybrid Vehicle with RemServ
It’s crazy to think that during the 20th century electric and hybrid cars outnumbered petrol-powered vehicles. Way back in 1900 it was electric vehicles that actually made up a third of all cars on the road in the USA, and it was only when Ford came along with the Model T that a significant blow was dealt to the electric car in terms of cost and capabilities at that time.
The situation appears to have come full circle and the electric vehicle or ‘EV’ is back. Concerns about the environment have never been more important to people and the cost of manufacturing EVs has reduced with recent jumps in innovation from Mazda, Toyota, Nissan and Tesla.
Today, there is an ever-growing number of RemServ customers leasing an electric or hybrid vehicle – and with the passing through Australian Parliament of the Treasury Laws Amendment (Electric Car Discount) Bill 2022, this looks set to continue.
Common electric vehicle questions:
What is the Electric Car (EV) Discount, and could it save me money?
A policy that aims to make electric cars cheaper and boost take-up of Zero Low Emission Vehicles (ZLEVs) in Australia, the Treasury Laws Amendment (Electric Car Discount) Bill 2022 passed through Federal Parliament in December 2022.
Ordinarily, law requires novated leases to have a certain amount of Fringe Benefits Tax (FBT) be paid – it’s why pre- and post-tax payments are needed. With the EV Discount a novated lease on eligible low- and zero-emission cars is FBT-exempt, up to the Luxury Car Tax (LCT) threshold of $89,332. This means there is no post-tax component!
Eligible cars (up to the LCT threshold) include battery electric vehicles (BEVs) and hydrogen fuel cell electric vehicles. Plug-in hybrid vehicles (PHEVs) are also eligible – but only until 1 April 2025. Those with pre-existing eligible novated lease arrangements on PHEVs can continue as FBT-exempt until the end of the lease period.
The 5% import tariff that applies to some imported EVs is also exempt as part of the policy.
Is novated leasing any different with an electric vehicle?
A novated lease with an electric vehicle really only differs in the same ways that these cars differ from their petrol counterparts. The main one for pure EVs of course is fuel; you won’t have a fuel card for petrol, but you are able to claim the cost of charging up at a station.
If you have a charging station at home, you can claim the cost of this electricity as well; the charging station will need to be installed on its own smart meter to enable this usage to be claimed accurately. Any costs associated with having access or being connected to the electricity however are not able to be claimed, and this also includes installation of the charging station itself. Please note, you cannot package the costs of a third-party charger that you purchase in addition to the vehicle.
Will my running costs be the same?
Different fuel aside, electric vehicles still require registration, maintenance and tyres. It is worth noting that with electric and hybrid vehicles, scheduled servicing and parts can be more costly in comparison to petrol vehicles, but it all depends on the make and model.
Where are the charging stations?
The amount of charging stations has exploded over recent years and there are plenty of online resources that map out where each one is. The Electric Vehicle Council of Australia website lists all the charging stations around Australia, the type of chargers – from entry-level to DC Superchargers – and leading charging infrastructure providers.
Are there many cars to pick from?
There’s a huge range of electric and hybrid vehicles available to novated lease with RemServ, for all budgets and lifestyles. Here are some examples:
- Toyota – Rav4
- Lexus – CT 200h Hybrid
- Mitsubishi – Outlander
- Honda – CIVIC
- Tesla – Model 3
- Nissan – LEAF
- Subaru – Forester
- Hyundai – KONA
- Mercedes Benz – C200
How are electric vehicles and plug-in hybrids different?
Electric vehicles are just that – electric – meaning they plug into a charger, and drive to a range determined by the amount of battery power in them. Plug-in-hybrids – or PHEVs – are like a halfway point between EVs and conventional cars; they have both a petrol and electric motor, and switch to the former when the battery power is used up.
Novated leasing an electric car through RemServ: Good for you and the environment
Novated leasing is all about the convenience of having all your budgeting and running costs taken care of by RemServ, while also enjoying the potential tax savings that come with utilising your employee benefit. As electric vehicles become more and more popular it’s nice to know that your novated lease could also benefit the environment as well as your hip pocket!
There’s a huge range of electric and hybrid vehicles available to novated lease with RemServ, for all budgets and lifestyles. Find out more today.
Keen to take the charge of your driving future and switch to an electric vehicle? Good choice, great timing! Get in touch and we’ll take you through your novated leasing options.
Visit our dedicated RemServ EV page for more info.
Disclaimer: This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.