What the Luxury Car Tax Increase Means for EVs on Novated Lease
Thinking about taking advantage of the Australian Government’s EV Discount with RemServ? Well, it just got better.
On 1 July 2024 the ATO raised the Luxury Car Tax (LCT) threshold for fuel-efficient vehicles from $89,332 to $91,387.
At RemServ, we’re excited about this news. With the price of EVs continually coming down, this LCT increase could mean more choice for those looking to switch to electric – and potentially more savings!
What is the EV Discount?
As part of the ‘Powering Australia’ initiative, Parliament created the Federal Government EV Discount. This discount has made EVs a whole lot cheaper for Queenslanders. Through the discount, EVs with a retail price under the LCT threshold are Fringe Benefits Tax (FBT)-exempt.
If you were to take out a novated lease on an eligible vehicle, you could be making all your repayments with pre-tax dollars. A win for the planet and your hip pocket!
If you want to know more about which cars are eligible for the EV Discount, check out this article.
The LCT threshold change also opens the opportunity for vehicle add-ons, such as premium paint or sports seats, provided that the total amount (including the vehicle price and add-ons) remains under the cap.
Join the EV Revolution
The EV Discount could potentially save you thousands through a novated lease. As one of Queensland’s largest novated lease providers, we have close relationships with many electric vehicle suppliers, and may be able to assist with sourcing your dream EV at a great price.
Talk to us to make the switch to electric today.
Disclaimer: This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.
