Plug-in Hybrid Tax Exemption Ending Soon
How Australians can save on a new car and its running costs
Looking to upgrade your vehicle? Now is the perfect time to consider a more sustainable option, thanks to the Fringe Benefits Tax (FBT) exemption introduced in 2022 for novated leases on electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) under $89,332.
This incentive is designed to encourage the adoption of eco-friendly transport—offering great financial benefits for eligible vehicles.
The FBT exemption applies to popular models like the MG HS, Mitsubishi Eclipse Cross, BYD Sealion 6, and many more. However, don’t wait too long! The exemption for PHEVs will expire on April 1st, 2025.
Key Eligibility Criteria:
- The vehicle must be new.
- It must fall below the $89,332 threshold.
- No luxury car tax should apply.
Take advantage of this limited-time opportunity to lease a more sustainable vehicle while saving on tax. Explore your options today before the FBT exemption ends!
How Does A Novated Lease Work?
Novated leasing involves three parties: your employer, a finance company, and you. It allows you to set up an agreement that takes your car finance payments directly from your employer, so it comes out of your pre-tax salary.
Whether it’s a new or used car, this allows you to bundle your car expenses along with your lease payments. This includes registration and insurance, as well as the cost of fuel, maintenance, tyres and car washing.
What Are The Benefits Of A Novated Lease?
1. Tax Savings
One of the primary benefits of a novated lease is tax savings. By having your lease payments and running costs deducted from your pre-tax income (or gross salary), you potentially reduce your taxable income.
2. Convenience
With all your expenses pre-budgeted, when tyres, servicing or registration comes due; a novated lease has you covered without needing to come up with funds.
3. Flexible Car Choices:
With a novated lease, you have the freedom to choose the car you want. Whether it’s a brand-new model or a reliable used one, the decision is entirely yours.
4. No Hidden Costs:
Clear Lease stands firm on transparency. There are no hidden fees or surprise costs. We believe in keeping things straightforward and clear for our clients. You’ll find all of this information directly on the quote provided by our team.
Eligible PHEVs
Peugeot 408
$357.45 a week
Total savings of $14,310*
Peugeot 3008
$342.38 a week
Total savings of $15,075*
Kia Sorento
$293.04 a week
Total savings of $43,316*
Mazda CX-60
$341.02 a week
Total savings of $13,598*
Mitsubishi Outlander ZM
$213.87 a week
Total savings of $34,447*
BYD Sealion 6
$270.27 a week
Total savings of $13,283*
MG HS Plus
$156.75 a week
Total savings of $25,238*
Mitsubishi Eclipse Cross
$192.07 a week
Total savings of $31,021*
*The above price estimates are as at October 2024. Costs are based on a VIC driver with an annual salary of $110,000 and 10,000km driven annually over a 5 year lease.