3 July 2023
In the realm of electric vehicles (EVs), novated car subscriptions provide an exciting and cost-effective solution for those looking to embrace sustainable mobility. With an EV novated car subscription, you can drive an electric vehicle of your choice while paying for the subscription using salary sacrifice. This arrangement allows you to save on GST and tax for both the vehicle’s cost and running expenses, as well as reduce your taxable income.
Yes, novated subscription differs from traditional novated leasing in several ways. With novated leasing, you commit to one vehicle over a period of 3 to 7 years while making regular payments. At the end of the lease term, you have the option to purchase the vehicle by refinancing the residual value. On the other hand, novated subscription provides greater flexibility. Subscribers can choose from a range of electric vehicles, enjoy all-inclusive running costs (excluding charging), and receive a new EV every 6 to 9 months, depending on the chosen plan. Novated subscriptions eliminate the burden of final balloon payments and long-term contracts.
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The amount you can save through a novated subscription depends on various factors, including your chosen vehicle, salary, and annual mileage. However, novated subscriptions have the potential to save you thousands of dollars. By utilising salary sacrifice, you reduce your taxable income, resulting in lower income tax payments. Additionally, the subscription’s fixed monthly fee covers insurance, maintenance, and registration costs, further reducing your overall expenses.
Novated EV subscriptions offer a diverse range of electric vehicles to choose from. Some popular options include the Tesla Model 3 and Tesla Model Y, BYD ATTO 3, MG ZS EV, and many more. Whether you prefer a sleek sedan or a spacious SUV, there are EV models available to cater to different preferences and needs.
For businesses, providing novated subscriptions for their employees offers several advantages.It allows them to offer a cost-effective solution for driving electric vehicles, which aligns with sustainability goals and demonstrates a commitment to reducing carbon emissions. Novated subscriptions also provide shorter subscription terms, making them attractive to employees who prefer to avoid long-term finance commitments. Offering this perk can help businesses retain valuable staff and boost employee satisfaction and happiness.
Employees stand to gain several benefits from opting for novated subscriptions. These subscriptions offer all-inclusive running costs, conveniently bundled into a single before-tax payment. By utilising salary sacrifice, employees can save on income tax, effectively reducing their tax burden. Additionally, novated subscriptions provide easy and low-cost weekly payments, making budgeting and financial planning more manageable. With novated subscriptions, there is no waiting time for vehicles, allowing employees to enjoy the benefits of driving an electric vehicle sooner.
EV novated car subscriptions present an innovative and accessible pathway towards driving electric vehicles. By utilising salary sacrifice and offering greater flexibility than traditional novated leasing, EV subscriptions enable individuals to enjoy the advantages of electric mobility while saving on expenses and reducing their environmental footprint. From saving on GST and tax to benefiting businesses and employees alike, novated subscriptions pave the way for a future of sustainable transportation.