Save employees tax on electric vehicles and plug-in Hybrids with a novated lease

Electric Vehicle adoption in Australia is set to explode. 40% of Aussies say they’d buy an EV if subsidies assisted the initial purchase price.

With the introduction of no FBT tax for eligible on EV and plug-in hybrids* through a novated lease arrangement, these vehicles are more accessible than ever. For businesses, this is a significant opportunity to offer considerable huge tax savings to your employees to attract, engage and retain staff, make substantial savings on payroll tax, while taking a leadership position on sustainability. All at no cost to your business.

Benefit the environment, and your business

Give your employees salaries a boost, at no cost

If the pending legislation passes, eligible Electric vehicles and plug-in hybrids will beare exempt from the 47% fringe benefits tax only if provided through a car salary packaging arrangement*. This could save your employees on average $9k per year in Fringe Benefits Tax (FBT), meaning an employee can more than double the savings compared to a Novated Lease with an ICE vehicle (Internal combustion engine). which is almost double what they would save on a traditional novated lease.

Strengthen your Employer Value Proposition

More than 7 out of 10 employees are interested in accessing salary packaging, yet with few having access, novated leasing could be a powerful tool to drive financial wellbeing and enhance your EVP*.

Simplify your balance sheet with no FBT

WiIth no FBT to pay on eligible EVs and plug-in hybrids, there is no FBT offset or reporting required, simplifying your balance sheet.

Minimise payroll tax

If your business qualifies for Payroll tax, a Novated lease for an electric vehicle will be deducted using pre-tax dollars of an employee only, meaning there will be a greater amount that is salary packaged compared to a traditional Novated lease for an ICE vehicle if using the ECM method to negate FBT payable. Therefore reducing your overall payroll tax requirements. More eligible EV’s and PHEV’s, more the savings for your business. Through an EV - there is more deducted pre-tax, payroll tax will be less than traditional novated lease. The more EVs reduce your overall payroll.

Benefit the environment, and your business

Give your employees salaries a boost, at no cost

If the pending legislation passes, eligible Electric vehicles and plug-in hybrids will beare exempt from the 47% fringe benefits tax only if provided through a car salary packaging arrangement*. This could save your employees on average $9k per year in Fringe Benefits Tax (FBT), meaning an employee can more than double the savings2 compared to a Novated Lease with an ICE vehicle (Internal combustion engine). which is almost double what they would save on a traditional novated lease.

Strengthen your Employer Value Proposition

More than 7 out of 10 employees3 are interested in accessing salary packaging, yet with few having access, novated leasing could be a powerful tool to drive financial wellbeing and enhance your EVP*.

Simplify your balance sheet with no FBT

WiIth no FBT to pay on eligible EVs and plug-in hybrids, there is no FBT offset or reporting required, simplifying your balance sheet.

Minimise payroll tax

If your business qualifies for Payroll tax, a Novated lease for an electric vehicle will be deducted using pre-tax dollars of an employee only, meaning there will be a greater amount that is salary packaged compared to a traditional Novated lease for an ICE vehicle if using the ECM method to negate FBT payable. Therefore reducing your overall payroll tax requirements. More eligible EV’s and PHEV’s, more the savings for your business. Through an EV - there is more deducted pre-tax, payroll tax will be less than traditional novated lease. The more EVs reduce your overall payroll.

A paperless, truly digital E2E process

Flare can help your business go green

Flare offers a paperless, and fully digital car salary packaging experience that’s better for you, your employees, and the environment. Our innovative process eliminates paperwork and saves time, reducing real time effort to apply and set up a Novated lease from approx. 4 hours of effort to within 10 minutes.

Experts in Electric Vehicles

Our Flare car experts have an extensive understanding of all cars, including electric and PHEV vehicles. We can help you to offer the significant savings available for eligible EV & PHEV’svehicles to your employees, buildingand build on your sustainability program.

A paperless, truly digital E2E process

Flare can help your business go green

Flare offers a paperless, and fully digital car salary packaging experience that’s better for you, your employees, and the environment. Our innovative process eliminates paperwork and saves time, reducing real time effort to apply and set up a Novated lease from approx. 4 hours of effort to within 10 minutes.

Experts in Electric Vehicles

Our Flare car experts have an extensive understanding of all cars, including electric and PHEV vehicles. We can help you to offer the significant savings available for eligible EV & PHEV’svehicles to your employees, buildingand build on your sustainability program.

A paperless, truly digital E2E process

Flare can help your business go green

Flare offers a paperless, and fully digital car salary packaging experience that’s better for you, your employees, and the environment. Our innovative process eliminates paperwork and saves time, reducing real time effort to apply and set up a Novated lease from approx. 4 hours of effort to within 10 minutes.

Experts in Electric Vehicles

Our Flare car experts have an extensive understanding of all cars, including electric and PHEV vehicles. We can help you to offer the significant savings available for eligible EV & PHEV’svehicles to your employees, buildingand build on your sustainability program.

Frequently Asked Questions

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Electricity mileage, maintenance costs, tyre replacements, rego, CTP, comprehensive insurance, car washing.

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Terms and Conditions

*Displayed price only available through a Flare Cars Novated Lease. Weekly costs are estimates only based on the following assumptions: 1) Gross Annual Salary of 85,000, 2) 60-month lease term, 3)a residual value of 28.13% of the vehicle purchase price payable at the end of term, 4) Weekly salary payments, 5) lease quotes include like for like running costs for Fuel, Maintenance, Tyres, Registration & CTP and an estimated cost for comprehensive insurance @ 2.5% of the vehicle, 6) Vehicle purchased in NSW, 7) 15,000km per annum, 7 ) prices quoted are based on real Flare Car customer orders placed through Macquarie Vehicle Select in the previous 90 days. 8 ) Salary Sacrifice using Employee Contribution Method (ECM). 9) The novated lease offer is based on the assumption outlined above. It is an indicative cost approximation of the selected vehicle and model shown, and the amounts may change at the time the novated lease quotation is completed and finalised. Vehicle discounts & availability is subject to manufacturer production delivery timelines and current stock levels.

^The savings shown are indicative and reflect a total of income tax savings, GST savings on vehicle running costs and GST savings on the purchase price of the vehicle over the full lease term. We assume your employer is able to claim 100% GST Input Tax Credits, due to their Input Tax status. The total amount saved compares a novated lease based on the assumption outlined above and the purchase of a vehicle and payment of running and maintenance costs using post-tax earnings. Actual savings will depend on your personal circumstances.

The maximum age of the vehicle is 15 years old from the build date at the end of the lease. A motor vehicle qualifies (except a motorcycle or similar vehicle) is designed to carry a load less than one tonne (<1,000Kgs) and fewer than nine passengers for FBT purposes.

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