A legislated change to the way electric vehicles are taxed will likely see many employees considering salary packaging the climate-friendly automobiles through a novated lease.
The change will widen the appeal of packaging EVs for workers whose employers offer salary packaging of cars, as the tax had previously made it not worthwhile to package expensive cars. Figures provided by Easigroup show a Tesla Model 3 with a purchase price of $72,500, where running costs also packaged with a five-year novated lease, would cost about $332 a week or $86,000 by the end of the lease, with a residual payment of about $21,000.Under the legislative change, the same package would cost just under $228 a week, or just over $59,000 over the five years, with a residual on the lease of almost $21,000.
The FBT rate is 47 per cent – higher than the highest income tax of 45 per cent. However, it is calculated as a portion of the value of the car and so does not claw back all the benefits of packaging, which usually includes the costs of insurance, tyres, servicing, registration and fuel.
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