Are you looking to upgrade your company vehicle to an environmentally-friendly and cost-effective novated lease?
Taking advantage of novated leases can result in significant savings, particularly with electric or plug-in hybrid vehicles. Learn how novated leases on electric or plug-in hybrid vehicles offer tax benefits and FBT exemptions that can save your business up to 45% on running costs.
Tax Benefits of Novated Leases:
Through novated leases, businesses and employees are able to access attractive tax benefits as well as an FBT exemption. This means that the novated lease payment & running cost is taken out of the employee’s salary before taxes are applied, reducing their taxable income and offering them more take-home pay.
These savings are taken further since novated leasers do not need to worry about paying any GST on the purchase price of the car, saving thousands before you’re even out of the gate.
FBT Exemptions for Electric and Hybrid Vehicles:
With novated leases, you can also benefit from FBT exemptions when opting for electric or plug-in hybrid vehicles. As long as the vehicle price is within the FBT exemption thresholds, your employer no longer needs to pay tax on these novated lease payments – an attractive proposition for many drivers considering a switch to electric or hybrid vehicles with significant tax savings.
This means that businesses no longer have to pay fringe benefits tax when using novated leasing for their staff vehicles – whether for private or business use. This results in even more savings for businesses and their employees that take a novated lease for electric or plug-in hybrid vehicles.
How To Save 45% On Running Costs With a Novated Lease:
In addition to the tax benefits associated with novated leases, you can also save up to 45% in running costs by choosing electric or hybrid novated leases. This is due to savings the GST on the purchase price (up to the LCT limit) and paying your vehicle and running costs before you are taxed. On top of this, novated lease payments can be spread out over a period of time, making them more cost-effective for the long run.
How to set up a novated lease on an electric or plug-in hybrid vehicle:
Setting up a novated lease is easy and straightforward with Clear Lease’s experienced team. We provide you with all the necessary paperwork, as well as handle any negotiations with your financier to ensure maximum savings are achieved, providing you with a Better Income, Better Outcome.
Novated leases on electric or plug-in hybrid vehicles offer attractive tax benefits and FBT exemptions that can save you up to 45% on vehicle & running costs. By taking advantage of novated leases, you can reduce their taxable income through salary packaging. This makes novated leases an attractive proposition for anyone looking to upgrade to an environmentally friendly vehicle with significant savings.
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