Electric cars
Save on your dream electric car with a novated lease
Electric cars + novated leases = a perfect match
An electric car for a petrol car cost? Oly makes it EV-peasy
When you use a novated lease to get behind the wheel of a petrol car, only part of the payment is taken from your salary before tax.
But choose an eligible electric car and, thanks to the government’s EV Discount, your entire lease payment can be taken from before tax salary. That could mean some juicy tax savings with every pay.
But the only way to score this amazing discount is with a novated lease.
Electric
$59,818
2024 Tesla Model 3
$41,149^
Estimated tax savings
$234
Cost per week^
Petrol
$38,990
2024 Mazda CX-5
$16,737^
Estimated tax savings
$235
Cost per week^
How the EV Discount works
Oly explains the government’s EV Discount and how it could save you thousands on your own shiny new electric car.
1:30 minute video
What’s in it for you?
(Hint: savings)
You could save on the car
Oly’s got connections with a huge network of car dealers, so you could score mate’s rates on your dream EV. Plus, taking advantage of a novated lease means you could skip upfront GST on cars up to $69,674. For cars with a driveaway price of over $69,674, upfront GST applies only to anything over that amount.
You could save on running costs
Running an electric car is generally much cheaper than a petrol car, and with a novated lease, electricity for metered home charging and the use of public charging stations can be included in your one regular payment taken from before-tax salary. EV-peasy!
You could save on tax
Use a novated lease to get yourself into an eligible electric car and 100% of your payment can come out of your salary before tax. For most people, that could mean paying a heap less tax each year. Cha-ching!
Demystifying electric cars
EV technology has come a long way in a short time. But just how good are electric cars these days? Oly debunks some common EV myths.
A charge doesn’t get you very far
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The average range of an EV on a single charge is nearly 480kms. Even if you drive 40kms every day, that’s at least 10 days between charges.
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Charging is too expensive
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Running an EV can cost up to 80% less per km than a standard car. So while someone driving 12,000kms a year could spend around $2.5k on petrol, an EV would only cost $500 for the same distance (depending on your electricity costs, of course).
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It’s hard to find somewhere to charge them
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Most new EVs come with a charger that plugs into your home power points, so you can find a charge pretty much anywhere. If you’re on the road, the Electric Vehicle Council of Australia lists everywhere you can recharge (like most major shopping centres).
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Charging takes too long
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While a full charge from your regular home power point can take up to 30 hours for older EV models, super-charge stations can add nearly 300kms worth of juice in 10 minutes. Regular charging stations can fill up the battery in five hours.
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They’re not powerful enough
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Without a fuel system, an EV delivers all its torque as you hit the accelerator, so it takes off quicker than most petrol cars. Plus, the position and weight of the battery gives you better handling and cornering, making EVs easier and safer to drive.
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They cost too much to buy
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With government discounts and novated lease savings, the price difference between an EV and a petrol car isn’t as much as you think. In fact, use a novated lease and you could score an electric car for the same price as a petrol model worth $20k more^.
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Electric vehicles FAQs
Can I take out a novated lease on an electric vehicle (EV)?
Absolutely! There’s actually no better way to get an EV than with a novated lease. Eligible electric cars under the government’s EV Discount don’t attract fringe benefits tax, so your entire novated lease payment can be taken from your salary before tax (which could mean you pay less tax!).
Not only that, when you use a novated lease to get an EV, there’s no upfront GST cost to you.
Plus, you get all the other benefits from taking out a novated lease, like having all your car-related expenses bundled into one regular payment.
Ordinarily, taking out a novated lease means you might end up having to pay fringe benefits tax (FBT). When you get a petrol or diesel car, Oly reduces that risk by taking some of your lease payments from your pre-tax salary and the rest after tax.
EVs under $91,387 (as of July 1, 2024) are exempt from the FBT, so Oly can take your whole payment from your pre-tax salary which could reduce your taxable income and put an even bigger smile on your face.
If it’s included in the cost of the car, then the charger will be bundled neatly into your novated lease payment.
Unfortunately, the current rules don’t allow third-party chargers bought separately to be bundled into a novated lease (but obviously Oly will let you know if that changes…).
Electric vehicle articles
Electric cars:
Novated lease electric car: everything you need to know before switching
Are you being drawn to the cool, tax-friendly hum of an electric vehicle (EV) novated lease?
4:20 minutes read time
Electric cars:
The EV FBT exemption: how does it work and who’s eligible?
Electric vehicles (EVs) are becoming super popular thanks to a 2022 government tax cut.
2:10 minutes read time
^ Things you need to know
^ Displayed price is only available through a novated lease administered by Oly. Estimated costs have been determined based on the following assumptions:
1) The example assumes that the EV is an eligible zero or low emissions vehicle,
2) The lease is an Oly fully maintained lease,
3) A 5-year lease term,
4) A residual value of 28.13% of the vehicle purchase price payable at the end of term,
5) Gross annual salary of $90,000,
6) An annual distance travelled of 15,000kms,
7) The value of the EV at the first retail sale was below the luxury car tax threshold of $91,387 for fuel efficient vehicles,
8) The EV is first held and used on or after 1 July 2022, and
9) Both vehicles are purchased in NSW. Additionally, the estimated annual operating costs includes estimates of fuel/electricity, maintenance, four replacement tyres, registration, CTP and comprehensive insurance, roadside assistance, and fleet management fee have been calculated on a GST exclusive basis, on the assumption that your employer will be entitled to GST input tax credits and that they will pass on the benefit to you. GST is payable on your ECM contributions. State Stamp Duty rates apply. PAYG tax rates effective 1 July 2024 have been used. The indicative price quoted for the novated lease is based on vehicle quotations received on 1 June 2024 and does not include any optional extras. Any optional extras that you choose will affect the cost of the novated lease and residual value. The novated lease offer is based on the assumption outlined in the comparison table and is an indicative cost approximation of the selected vehicle and model stated and the amounts may change at the time the novated lease quotation is completed and finalised. Your individual circumstances have not been taken into account as this will affect the overall weekly cost amount and the benefits of a novated lease. Savings shown are indicative and reflect estimated tax savings over the full-term of the lease. The total amount saved is a comparison between the costs of a novated lease with an EV and the costs of a novated lease with a petrol car. Actual savings will depend on your personal circumstances and may vary depending on the vehicle model and price. Oly recommends that you seek independent financial and taxation advice.