Lease a PHEV and lock in the EV Discount before it's gone!
PHEVs (Plug-in Hybrid Electric Vehicles) are a hot pick right now as Aussies can lock in extra tax savings with the EV Discount before they lose eligibility from 1 April 2025. These nifty hybrid cars are popular because they offer the best of both worlds - electric power for shorter local trips with petrol backup for longer drives.
A new survey by JWS Research shared by the National Automotive Leasing and Salary Packaging Association (NALSPA) of more than 600 PHEV drivers found there’s more than just tax savings on offer when leasing a PHEV. The majority of PHEV drivers travelling more than 200 kilometres per week saved up to $75 a week on fuel!
4:10 minute read
Key takeaways
What's the big deal with the EV Discount?
Word is (according to the NALSPA survey) the EV Discount is one of the top 3 reasons Aussies chose to get into a PHEV with a novated lease, with a whopping 90% saying the savings sealed the deal.
In case you missed the memo, the EV Discount is an initiative from the Australian government that lets you pay your lease payments and eligible running costs for an eligible EV (including PHEVs) 100% from your before tax salary, which could mean some juicy tax savings. And the only way to score the EV Discount is with a novated lease.
Plus, with a novated lease, you could skip upfront GST on PHEVs priced up to $69,674! For driveaway prices above that, GST only kicks in on the amount over $69,674.
PHEV FBT Exemption
Fringe Benefits Tax (FBT) usually kicks in when your employer provides non-cash benefits, like a novated lease. But with the EV Discount, PHEVs (and fully electric cars) under the luxury car tax threshold ($91,387 for FY24/25) and leased after 1 July 2022 are eligible for an FBT exemption, allowing you to make lease payments completely from your before tax salary.
But here’s the catch. From 1 April 2025, PHEVs will no longer qualify for the EV Discount. So, if you’re itching to score the sweet PHEV tax benefit it’s time to hit the pedal - you could still access the EV Discount for cars delivered before the 1 April 2025 cut off.
Why a PHEV?
PHEVs are hot right now because they’re lower carbon emissions and versatile. You can glide around the city in electric mode, then hit the open road with petrol power. When you need to recharge the PHEV's battery, there’s no need to hunt for charging stations, you can simply switch to petrol and keep cruising.
The survey also found that PHEVs are slashing emissions quicker than expected, with most PHEV drivers, on average, using the electric-only power for two-thirds of their trip.
Juicy PHEV tid-bits from the NALSPA-JWS survey
- 61% picked the FBT exemption/EV Discount as their top reason for getting a PHEV with a novated lease, and most (90%) said the savings on offer sealed the deal.
- 6 in 10 (64%) would seriously consider a PHEV for their next car.
- PHEV drivers who clock 200+ km a week (22%) are more likely to save an estimated $76-$100 a week on fuel, compared to the average (16%).
- 9 in 10 (89%) charge up at home at least twice a week, with nearly 3 in 5 (57%) plugging in every night.
- Nearly 9 in 10 PHEV lessees (88%) use their PHEV as their main household car.
What are the most popular PHEV models?
As of August 2024, 53 PHEV models up for grabs in Australia. In July 2024, Drive says sales of PHEVs are growing faster than any other new car type in Australia with deliveries more than doubling this year.
Hot on the list is the BYD Sealion 6 - not just a car, an adventure on four wheels! Whether you're tearing up the highway or zipping through the city, the BYD Sealion 6 thrills with its 1.5L plug-in hybrid engine. It’s a wild ride with a combined range of up to 1,092kms, a slick 15.6-inch rotating touchscreen, and 19-inch alloy wheels!
Another front runner is the Mitsubishi Outlander PHEV, which packs some brag-worthy perks you don’t always find in the medium SUV game - like its electrified powertrain, seven seats for the crew, and a solid 10-year warranty.
Then there’s the zippy Mitsubishi Eclipse Cross and its 4-cylinder 2.4L engine with 4x4 on demand. It has mighty efficient fuel economy with just 1.9L per 100km.
Legendary novated leases with Oly
Oly is your key to novated leasing, getting you behind the wheel and making life easy with a simple, single regular payment that covers your new car and its related eligible expenses too.
With the tax savings you could gain and no upfront deposit, Oly makes it easy for you and your employer to set up your PHEV novated lease - you’ll be on the road before you know it.
Oly is backed by one of Australia’s largest and most trusted novated leasing providers, McMillan Shakespeare. Benefit from bigger buying power to get a great deal on your PHEV while Oly takes care of the leasing admin.
So, if you’re thinking about making the switch to a PHEV, Oly can help you get into the driver’s seat and make the most of the perks while they’re still on the table!
Calculate how much you could save on a PHEV with Oly’s novated lease calculator.
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