Now is an excellent opportunity to purchase an electric vehicle, especially with the electric vehicle discount. EDEA suggests a novated lease as the best way to purchase an electric vehicle.

We have collaborated with leading players in the electric vehicle industry, kept a close watch on government initiatives aimed at increasing EV uptake, and prepared our national dealership network and systems to help you get your preferred eco-friendly vehicle.

A Novated Lease is a vehicle financing arrangement commonly used in Australia. It involves three parties: a leasing company, an employer, and an employee.

Under a Novated Lease, an employee leases a motor vehicle of their choice from a dealership and then enters into a Novation Agreement with their employer. The employer then becomes responsible for making lease payments on the vehicle from the employee's pre-tax salary.

In this way, the employer effectively becomes the lessee of the vehicle, which they provide to the employee as part of their remuneration package. The employee remains responsible for the vehicle, including all running costs.

If the employee leaves the employer, the novation deed is automatically terminated, and the financing arrangement becomes solely between the employee and the leasing company.

Novated Leases offer several advantages, including significant tax benefits for employees, a range of flexible options, and the ability to include running costs in the lease agreement.

Choosing a novated lease to own an electric vehicle is a highly cost-effective option when compared to other financial arrangements or leasing options. This is because of the initial tax savings on the vehicle's purchase price and the continual benefits of operating the vehicle throughout the lease period.

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While the answer to whether GST is included in a novated lease is no, the process involved is somewhat intricate. When an individual purchases a vehicle through a novated lease, the leasing company pays the dealership the GST, which is included in the purchase price, and claims the entire amount. Consequently, the financing of the car is done exclusive of GST. Although GST is included in the payments on the lease, the employer, who is Salary Packaging the car, claims the GST, and the tax savings are passed on to the employee. This is a widely used practice in Salary Packaging companies in compliance with the ATO guidelines.

A Novated Lease includes several running costs associated with the operation of the vehicle. The specific running costs included in the Novated Lease package may vary depending on the agreement between the employee, employer, and the leasing company. However, the following are some of the most common running costs that are included in a Novated Lease:

Lease payments: The cost of leasing the vehicle is included in the Novated Lease package, and is typically spread out over the lease term.

Fuel expenses: This includes the cost of fuel required to operate the vehicle.

Scheduled services: The cost of regular servicing and maintenance of the vehicle is typically included in the package.

Tyre replacements: The cost of replacing worn or damaged tyres is included in the package.

Registration fees: The cost of re-registering the vehicle each year is typically included in the package.

Insurance premiums: Comprehensive insurance coverage for the vehicle is also included in the package.

Including these running costs in the Novated Lease package allows the employee to pay for them with pre-tax income, resulting in tax savings. However, any changes to the running costs included in the package will affect the overall package price and tax benefits. Therefore, it is recommended that employees seek advice from their leasing company or consult with a financial advisor before making any changes to their Novated Lease package.

As the automotive industry embraces technological advancements and introduces more electric vehicles (EVs), the time required for charging is decreasing significantly. Basic chargers that come with EVs may take up to 30 hours to fully charge a vehicle, but higher-capacity chargers can cut this time down to overnight charging. It is advisable to discuss the expected charging time with your dealer to determine whether investing in a higher-capacity charger is worth the extra cost.

For the public or roadside charging options, the charging times can be much faster, depending on the type of vehicle you own. These chargers can provide a charge capacity of up to 120km within 45 minutes, which makes them convenient if you have an appointment or other engagements to attend to while your vehicle is charging.

For the more populous parts of Australia, there are super-charge stations strategically located to provide quick charging for EVs. These stations can add up to 300 kilometres of range in just 10 to 15 minutes.

At the end of a Novated Lease, the employee has a few options to consider. The first option is to simply return the vehicle to the leasing company and end the lease. This is a hassle-free option that allows the employee to walk away without any further obligation.

Another option is to refinance the residual amount owing on the vehicle and continue to drive it. This means that the employee would need to obtain financing for the residual amount, which is the remaining balance on the car after all lease payments have been made. Refinancing can be done with the same leasing company or with a different lender.

The third option is to sell the vehicle and use the proceeds to pay off the residual amount. This option requires some effort on the part of the employee, as they will need to find a buyer for the vehicle and negotiate a price that will cover the residual amount.

It's important to note that if the employee chooses to refinance or sell the vehicle, they will be responsible for any shortfall between the sale price and the residual amount owing. On the other hand, if the sale price exceeds the residual amount, the employee will receive the surplus amount.

(1) We can communicate with your new employer and initiate discussions with them to set up your Novated Lease package.

(2) It's possible that your new employer may have already established a partnership with another Salary Packaging provider. In such a scenario, we will cancel your current package and transfer all the funds held by Vehicle Solutions Australia to the new provider or return it to your current employer.

If your new employer declines to take over your package, we will cancel the package, and you will be responsible for making all necessary payments from your after-tax income, as you would have done without Salary Packaging. It is important to note that any such cancellations or transfers will be conducted in compliance with relevant regulations and guidelines.

The Federal Government has passed changes to the Tax Act making EVs & amp; PHEVs under $84,916 FBT exempt. The legislation allows employees to Salary Sacrifice 100% of the finance & amp; vehicle running costs from pre-tax salary. This means all employees pay no tax or GST on their EV costs, leaving more disposable income in every pay, compared to before. This changes the game! Although the approximate 8% interest rate on a novated lease may seem discouraging on the surface, you are actually better off as you save the 30-40% income tax by purchasing before it has been applied to income. You’ll simply need to state your income, your average km/year and your desired loan duration to estimate your lease repayment plan.

The eligibility requirements for an electric vehicle (EV) novated lease may vary depending on the finance company and employer, but some common requirements include:

Employment: The employee must be employed and earning a regular income.

Creditworthiness: The employee must meet the credit requirements set by the finance company.

Vehicle eligibility: The EV being leased must be eligible for novated leasing under the terms and conditions set by the finance company.

Employer participation: The employer must agree to participate in the novated lease arrangement.

Residency: The employee must be a resident of the country where the novated lease is being offered.