Claiming EV Charging via Novated Lease: You Have Choice!
Following the introduction in 2022 of the Federal Government’s Electric Car (EV) Discount, which exempts eligible EVs financed under novated lease from paying fringe benefits tax, there has been a huge spike in drivers switching to electric.
With EVs seeing a 150% increase in market share from 2022 compared to 2024, and sales trending towards 10% of the overall car market,* interest in options for claiming the costs of charging is naturally increasing.
The good news is that, if you lease an eligible EV through a novated lease arrangement, you could have two choices when it comes to claiming the cost of charging your EV – whether at home or via a public station. Importantly, you may only use one method per Fringe Benefits Tax (FBT) year.
Shortcut Method
In 2024, the ATO released a simplified guideline to help EV-novated lease customers calculate the cost of electricity for home charging their battery electric vehicles.
Known as the ‘shortcut method’ and geared towards people who do most of their charging at home, and don’t have a dedicated fast charger or separate meter, it allows eligible customers to claim 4.2 cents per km for charging an EV at home.
This is calculated by multiplying the dollar amount (0.042) by the number of kilometres driven over the FBT year, which runs from 1 April to 31 March.
Note: The shortcut method only applies to vehicles that are solely fueled by electric power. The shortcut method is not available for Plug-in Hybrid Electric Vehicles (PHEVs).
Let’s say you drive 15,000 kilometres over the FBT year and do 100% of your EV charging at home – your calculation would be 15,000 x 0.042, which equals $6302.
You’d therefore claim $630 as part of your annual novated lease costs.
To ensure your claim is valid and to maximise your potential tax benefit, be sure to make a note of your odometer reading at the start of the FBT year (1 April) for inclusion with your next claim.
So, if you were claiming for the 2025-2026 FBT Year, you would need to provide an odometer reading from or on 1 April 2025 so that we could reimburse you correctly.
You can obtain a shortcut claim form via one of our consultants or download it here.
Note: The shortcut method only applies to novated leasing vehicles that are solely fuelled by electric power. The shortcut method is not available for Plug-in Hybrid Electric Vehicles (PHEVs).
Invoice Method (Public and/or Metered Home Charging)
The invoice method allows eligible EV customers to claim costs from public charging stations, as well as metered home-charging. This method could suit people who do most of their charging outside of their homes; or have their own dedicated fast charger or separate meter.
To claim your actual costs, you must be able to demonstrate specifically how much energy is going towards your EV and at what cost.
For public charging, this is as simple as lodging your tax invoice for your charging session.
For home charging, this can be either obtained through a separate smart meter installed in your home, or via a home charger with metering included. You would also need to supply your electricity bill to demonstrate the cost per kilowatt your supplier is charging for the energy being consumed.
Say you have receipts totalling $260 from public charging stations from this FBT year, and also have clearly defined separate EV meter charges on your electricity bill or fast charger invoice of $5403. You could submit copies of both sets of invoices as long as you have a record of all actual expenses incurred in respect of the eligible EV charges.
You’d therefore claim $800 as part of your annual novated lease costs.
To ensure your claim is valid and to maximise your potential tax benefit, you would need to include copies of your tax invoices and receipts with your claim, ensuring they show the actual expenses incurred.
You could submit your invoices via your RemServ app or RemServ Online under fuel expenses.
We’re all about making matters simple for eligible customers keen to take advantage of the government’s EV Discount. Give RemServ a call on 1300 30 39 40.
*Source: EVC 'State of EVs 2024' - https://electricvehiclecouncil.com.au/wp-content/uploads/2024/12/1734312344781.pdf
2The calculations contained in the example are based on annual travel of 15,000km, with charging undertaken at home without a separate smart meter, or a fast, in-home charger with the metering included within it. The information has been made available for informational purposes only and should not be taken as advice. While all reasonable care has been taken, RemServ does not guarantee or warrant the accuracy or completeness of this information and will not be liable for, or in connection with, any loss or damage suffered as a result of any inaccuracies, errors or omissions or your reliance on this information.
3The calculations contained in the example are based on annual travel of 15,000km, with charging undertaken as 12,000km charged at home (35 charges of $18) and 3,000km charged publicly (7.5 charges of $35). The information has been made available for informational purposes only and should not be taken as advice. While all reasonable care has been taken, RemServ does not guarantee or warrant the accuracy or completeness of this information and will not be liable for, or in connection with, any loss or damage suffered as a result of any inaccuracies, errors or omissions or your reliance on this information.
Disclaimer: The material contained in this article is of general nature only and is based on the ATO Guidelines as of the date of publication. It is not, nor intended to be legal, financial or tax advice. If you wish to take any action based on the content of this article, we recommend that you seek professional advice.
Things you need to know: This general information doesn’t take your personal circumstances into account. Please consider whether this information is right for you before making a decision and seek professional independent tax or financial advice. Conditions and fees apply and you should confirm they are acceptable before you accept any arrangements with RemServ, along with credit assessment criteria for lease products. The availability of benefits is subject to your employer’s approval. RemServ does not act as your agent or representative (or provide you with any advice or recommendations) in respect of the leasing of any vehicle. You acknowledge and agree that any reward you receive is not a salary, however you may need to declare any reward as income for tax purposes.
Disclaimer: This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.
