Is a novated lease on ev worthwhile?

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Yes by a mile. Anyone who says no doesnt understand the difference between gross and net costs.

I just signed up for one. It's so ludicrously worthwhile that we need reform here, it unfairly advantages high income earners. I'm all for supporting EV use, but not like this.

Yes, I took out a novated lease and over next, the 5-year term I'm expected to save over $17,000. This includes GST savings and being able to reduce my taxable income.

That’s 17000 compared to what you’d pay if you otherwise financed your car, rather than buying it outright, correct?

$17,000 compared to buying outright.

Wow, which lease company? Whenever I’ve got a quote it seems that, of the tax benefit, the leasing company is taking the lions share of the profit and I’m saving a few grand mostly because it means I can keep money in my offset compared to buying outright

Smartleasing. Everyone's circumstances are different. I was able to obtain a cheaper interest rate thanks to my clean credit record. Are you considering the GST savings and all the income tax savings? Of course the higher your income the more income tax you save too.

I’m just comparing what what I actually pay (in terms of impact on my net pay over the lease term plus the balloon payment) compared to the cost of buying outright, factoring in the benefit re mortgage offset.

I don't think that's the best way of comparing because what comes out of your pay also includes insurance, maintenance, and running costs. By calculating all the tax savings you can figure out how much you actually save through a novated lease agreement.

Yes I factor in those additional things

Until you get made redundant 3 months in....

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Not sure if they all have that. My lease company certainly didn't mention it. Just gave me the option to transfer to another company or convert to finance.

Whenever I do the novated lease calcs it ends up looking like a complete rip off. Maybe I'm doing something wrong. new BYD Shark $52k Fortnightly repayments $680 over 5 years Residual payment after 5 years - $17 k Total = $90'000+!

It's also quoting me a fortune on tyres and insurance. $2200 for insurance, I currently pay $900 on an Amarok.

Most companies let you source your own insurance/tyres. You claim the costs back. Anything extra will come back to you at the end of the lease.

Check out [this calculator.](https://docs.google.com/spreadsheets/d/1CtpBXmuhRW3HrBjqJqnPeFhOfqCbPK-wXA17oz_1fuA/copy) And read [the guide.](https://novatedlease.guide/)

Something is quite wrong with the figure you got quoted.  Either you have some ridiculously expensive insurance bundled in, or your 680 per fortnight is a pre-tax figure rather than true take-home impact.  Could you double check which is the case?

Ah might be pre tax. It was just a quick calculation from Smartleasing

Individual. Is worth it for me!

Shark 6 isn't a pure EV. Only fully electric gets the FBT benefits unfortunately

You don’t get the tax break on a hybrid, has to be pure EV

Depends on your income. Who pays for the running costs What are the ftb implications Etc

Why? It’s a means based thing. High income earners have the means to buy it outright or via conventional leasing if they want, but they wouldn’t as it’s a bad financial decision. This allows a good portion of the population to buy EVs via a financially sound method. How would you propose to incentivize low income earners to purchase $30k+ electric vehicles via a sound financial scheme?

EVs could be GST free, that's 10% off already. And it gives the same benefit to anyone, regardless of their income. That's fair to everyone, and doesn't distribute wealth away from low earners, and toward high earners. And if it's going to be means based, there should be more benefit for lower income earners, and less benefit for higher income earners. FBT exists for a reason - so high earners can't restructure to evade tax. If the incentive is means based, but weighted toward lower earner, then the people you're taking about will be able to afford an EV.

You don't get tax benefits for hybrids

Just use your own insurance.

In 3-5 years, there will be a flood of second hand EVs, at an appropriate price for low income earners.

That's true. It's definitely not an argument for continuing the FBT exemption though.

Was the discounted interest rate offered up front or did you push the sales consultant? I'm mid-quote with Smart at the moment.

The new rate was automatically applied after they completed a credit assessment. It's not something that was offered or something I had requested.

Thank you 😊