A novated lease electric vehicle is an efficient way to switch from petrol to green. Not only does it save you money on taxes, but it also comes with numerous other advantages.
With the Australian Government’s Electric Car Discount, leasing an electric vehicle (EV) has never been more accessible. These include the battery, hydrogen fuel cell and plug-in hybrid electric vehicles.
Save Money on Your Taxes
Novated leases are an effective way to save on taxes. It is because the payments on a novated lease are taken out of pre-tax salaries, which lowers your taxable income. It means you pay less tax in the long run and save money on overall car costs.
A novated lease is also an excellent way to use electric vehicle tax credits. These credits could save you up to $7500 on your next electric vehicle purchase; however, you must understand how they work before claiming them.
The manufacturer will give you a tax credit when novated lease electric vehicle. You can use this money to cover the cost of your EV; however, it’s wise to consult an accountant beforehand to ensure you maximise the credit.
You may be eligible to reclaim VAT on your vehicle if it’s being used exclusively for business purposes. Doing so can further reduce your tax bill, though you must demonstrate that it isn’t being used personally.
As a business owner, novated leases can be an excellent way to reduce expenses and decarbonise your fleet – thus decreasing carbon emissions.
In addition to tax savings, novated leases allow you to reduce tyres, insurance and servicing expenses. By bundling these into one easy-to-budget monthly or fortnightly payment, it becomes possible for you to budget effectively for all of your car costs – helping you reach both short- and long-term financial objectives.
The government is encouraging more electric vehicles (EVs) on the road, and a novated lease can be an ideal way to do so. Not only is it affordable to purchase an EV, but you’ll save thousands in taxes over its life expectancy.
The novated lease process can be intricate, so selecting a reliable company that offers you the most advantageous deal is essential. Reputable companies will present various options and assist in finding the ideal vehicle for your requirements. Furthermore, they’ll explain how tax credits and other incentives work so that you can take full advantage of them.
Enjoy All the Benefits of Owning a Car
Owning your car provides all the advantages of independence, which is integral to living a healthy life. It includes having the freedom to go wherever you please and having flexibility about time management.
Additionally, employees can use novated leases to get into an electric vehicle. Doing so allows you to take advantage of tax breaks and incentives that save on costs like gas.
Under the government’s EV Discount program, you can claim up to $16,375 in tax savings on an electric vehicle over a five-year lease period. Furthermore, charging the car at home and other related costs are eligible for deduction.
Another advantage to owning a car is that it’s an investment that may reap rewards in the future. However, getting a new vehicle can be expensive, so carefully weigh all options before purchasing one.
Owning a car has many advantages, but one of the primary ones is the freedom to go where you want when you want. It is especially useful if you live in an isolated area or have disabilities that make public transportation impossible. Furthermore, having your vehicle simplifies getting to work, classes or events on time.
It is especially crucial if you have children or elderly family members who require your assistance. In addition, travelling by bus or train can be challenging when the weather is terrible, adding another layer of hassle to the process.