Save on Electric Cars with Novated Leasing
- Brampton Finance
- 2 days ago
- 2 min read
Save on Tax and Running Costs with EV Novated Leasing
With fuel costs continuing to rise and government policy around EV Fringe Benefits Tax (FBT) exemptions under review, now is a critical time for employers and employees to consider novated leasing options.
A novated lease offers a tax-effective way for employees to finance a vehicle, particularly electric vehicles (EVs), while providing real benefits without any cost to the employer.
What is a Novated Lease?
A novated lease is a salary packaging arrangement where:
The employee leases a vehicle
Payments are made from pre-tax income
The employer facilitates the arrangement through payroll
This structure can significantly reduce taxable income, improving overall affordability.
Why Electric Vehicles Are Even More Attractive
Eligible electric vehicles currently benefit from FBT exemption (up to $91,387), creating a powerful opportunity for savings.
This means employees can:
Pay for their vehicle using pre-tax income
Potentially avoid FBT entirely on eligible EVs
Reduce overall ownership costs compared to traditional vehicles
However, with these exemptions under review, timing is key.
The Financial Benefits for Employees
A novated lease can help employees:
Reduce tax through salary sacrifice
Manage rising fuel and running costs
Access significant FBT savings on eligible EVs
In many cases, this results in a lower effective cost of ownership compared to paying cash or using a standard car loan.
Benefits for Employers
For employers, the benefits are simple:
No cost to the business
No impact on cash flow
No requirement for business use
No logbooks required
It’s a low-effort, high-value employee benefit that can:
Improve staff retention
Enhance remuneration packages
Support sustainability initiatives
Why You Should Act Now
The current EV FBT exemption has made novated leasing one of the most attractive vehicle finance strategies available today.
However:
Policy settings may change
Delays could reduce access to benefits
Demand for EVs continues to increase
Acting sooner allows employees to lock in current advantages while they are still available.
Simple to Implement
Setting up a novated lease is straightforward:
We manage the process end-to-end
Minimal administration for employers
Seamless integration with payroll
Speak to Brampton Finance
At Brampton Finance, we help businesses and employees:
Structure novated leases correctly
Maximise tax efficiency
Navigate EV eligibility and FBT rules
No obligation — just clear, practical advice.
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