You’ll be eligible for a novated lease if you’re a permanent employee and your employer offers novated leasing and salary sacrifice employment arrangements.
If you are already packaging with Smartsalary, you can log in to your account to check if your employer offers novated leasing.
For more information on eligibility criteria, feel free to contact our team.
In most cases, a novated lease can be a lot cheaper than purchasing an electric car outright or taking out a car loan.
Savings in action
There are 2 main types of electric cars. You can novated lease any of them:
1. Plug-In Hybrid Electric Vehicles
2. Battery Electric Vehicles
Yes! The Federal Government’s Electric Vehicle Discount Policy applies to all eligible new electric cars purchased after 1 July 2022 and used electric vehicles first registered after 1 July 2022.
With the discount, eligible EVs are exempt from the Fringe Benefits Tax, so you can salary package the finance and running costs out of your pre-tax salary.3
While your EV will need to be below the luxury car tax threshold ($89,332 in 2023-24 Financial Year), the electric car discount can be applied to the following EVs purchased through a novated lease: arrangement.
1. battery electric vehicles; and
2. plug-in hybrid electric vehicles (available to start up to April 1st 2025, with exemptions applicable for existing leases until they expire).
The most common expenses that can be claimed include; electricity, servicing, tyres, registration, CTP, comprehensive insurance, car washes, roadside assistance and charging stations. For home charging stations, you will need to be able to show the breakdown between the EV charging costs and your normal household electricity costs (e.g. through the use of a Smart Meter or separate fitted electricity supply). For mobile or public charging you have the option to use a Chargefox RFID card. If you have paid for the charging from your own funds, you can submit a claim for reimbursement via the Smartleasing app.
Fringe Benefits Tax legislation does not allow the cost of third party wall chargers (including installation) or other additional charging accessories to be claimed as vehicle expenses as part of a novated lease. Most new EVs will be provided with a charging cable as part of the vehicle purchase and you are able to claim the replacement of a charging cable if it is a like for like replacement and not an upgrade in charging technology.