An Electric Vehicle on Novated Lease with RemServ

It’s an historical anomaly that in the early 20th century electric and hybrid cars outnumbered petrol-powered vehicles, however this trend didn’t continue for the remainder of that century.

The situation appears to have come full circle and the electric vehicle or ‘EV’ is well and truly back. Concerns about the environment have never been more important to people and the cost of manufacturing EVs has reduced with recent jumps in innovation from Mazda, Toyota, Nissan, Tesla and BYD.

Today, there is a significant number of RemServ customers leasing an electric or hybrid vehicle – with the Federal Government’s Electric Car (EV) Discount, which became law in 2022, a major driver of this spike.

Common electric vehicle questions:

What is the Electric Car (EV) Discount, and could it save me money?

The EV Discount aims to make electric cars cheaper and boost take-up of Zero Low Emission Vehicles (ZLEVs) in Australia.

Ordinarily, novated leasing will attract Fringe Benefits Tax (FBT) – it’s why pre- and post-tax payments are needed to minimise the potential impact. With the EV Discount a novated lease on eligible low- and zero-emission cars is FBT-exempt, up to the Luxury Car Tax (LCT) threshold of $91,387. This means there is no post-tax component!

Eligible cars (up to the LCT threshold) include battery electric vehicles (BEVs) and hydrogen fuel cell electric vehicles. Plug-in hybrid vehicles (PHEVs) are also eligible – but only until 1 April 2025. Those with pre-existing eligible novated lease arrangements on PHEVs can continue as FBT-exempt until the end of the lease period.

Is novated leasing any different with an electric vehicle?

A novated lease with an electric vehicle really only differs in the same ways that these cars differ from their petrol counterparts. The main one for pure EVs of course is fuel; you won’t have a fuel card for petrol, but you are able to claim the cost of charging up at a station.

Can the cost of charging be claimed?

Your options include claiming what’s known as “the shortcut method” – 4.2 cents per kilometre for charging an electric vehicle at home – or “the tax-invoice method, in which you can be reimbursed for tax invoices from public charging stations.

Please note, you cannot package the costs of a third-party charger that you purchase in addition to the vehicle.

Will my running costs be the same?

Different fuel aside, electric vehicles still require registration, maintenance and tyres.

Because EVs have fewer moving parts – and less components that need servicing – they have lower running costs than their petrol or diesel counterparts.

The Electric Vehicle Council of Australia reports that for some EV models, owners are estimated to save up to $400 every year in maintenance costs compared to an equivalent combustion engine vehicle. 

Where are the charging stations?

The amount of charging stations has exploded over recent years and there are plenty of online resources that map out where each one is. This article contains a handy map that lists the charging stations around Australia, the type of chargers – from entry-level to DC Superchargers – and leading charging infrastructure providers.

Are there many cars to pick from?

There’s a huge range of electric and hybrid vehicles available to novated lease with RemServ, for all budgets and lifestyles. To check out some of the available vehicles, you can view our Car Offers page (hint: look for the green ‘EV Discount Eligible’ stamp.)

How are electric vehicles and plug-in hybrids different?

Electric vehicles are just that – electric – meaning they plug into a charger, and drive to a range determined by the amount of battery power in them. Plug-in-hybrids – or PHEVs – are like a halfway point between EVs and conventional cars; they have both a petrol and electric motor, and switch to the former when the battery power is used up.

Novated leasing an electric car through RemServ: Good for you and the environment

Novated leasing is all about the convenience of having all your budgeting and running costs taken care of by RemServ, while also enjoying the potential tax savings that come with utilising your employee benefit. As electric vehicles become more and more popular it’s nice to know that your novated lease could also benefit the environment as well as your hip pocket!

There’s a huge range of electric and hybrid vehicles available to novated lease with RemServ, for all budgets and lifestyles. Find out more today.

Keen to take the charge of your driving future and switch to an electric vehicle? Good choice, great timing! Get in touch and we’ll take you through your novated leasing options. Visit our dedicated RemServ EV page for more info.