Novated Lease for Tesla & Electric Autos: Smart EV Lease Tutorial
Novated Lease for Tesla & Electric Autos: Smart EV Lease Tutorial
Blog Article
Interested in a hassle-free novated lease for a Tesla or electric vehicle? At Auto-Deduct, our novated lease plans simplify how you get behind the wheel of your dream EV. Whether you're exploring a Tesla, going green with an electric vehicle, or comparing car lease versus ev lease options, we've got you covered. Our guide breaks down how novated leasing can save you money, offer flexibility, and support a seamless driving experience.
1. What Is a Novated Lease?
A novated lease is a three-way salary packaging agreement involving you, your employer, and a leasing provider. The employer deducts lease payments directly from your pre-tax salary, giving you an instant tax reduction :contentReference[oaicite:0]index=0.
- Employer takes on lease obligations.
- Your monthly payments come from pre-tax income, reducing taxable salary.
- Vehicle running costs—fuel or EV charging, servicing, registration, insurance—can be bundled into one payment :contentReference[oaicite:1]index=1.
2. Why Novated Lease Is Ideal for EVs (Tesla & Beyond)
2.1 Fringe Benefits Tax (FBT) Exemption
Since July 2022 in Australia, eligible electric and plug-in hybrid vehicles under ~$91,387 qualify for full FBT exemption—making EV novated leases extremely cost-effective :contentReference[oaicite:2]index=2.
2.2 Real Savings Example
For instance, leasing a Tesla Model Y (~$71k) has proven cheaper than leasing a ~$56k hybrid SUV because of tax savings outweighing higher lease costs :contentReference[oaicite:3]index=3.
3. Benefits of a Novated EV Lease
- Tax advantage: Payments are deducted pre-tax, reducing taxable income :contentReference[oaicite:4]index=4.
- Bundled expenses: Fuel or charging, insurance, servicing, registration, tyres – all included :contentReference[oaicite:5]index=5.
- No upfront payment: Start driving with zero deposit :contentReference[oaicite:6]index=6.
- Fleet discounts: Access wholesale pricing on vehicles :contentReference[oaicite:7]index=7.
- Residual value options: At lease-end, you can buy, refinance, or upgrade :contentReference[oaicite:8]index=8.
- GST savings: Avoid GST on vehicle purchase and running costs :contentReference[oaicite:9]index=9.
- Flexibility: Transfer the lease if you change jobs :contentReference[oaicite:10]index=10.
- Eco-friendly driving: Easier to access EVs with sustainability and cost benefits :contentReference[oaicite:11]index=11.
4. Potential Risks & Considerations
- Employer dependency: Lease tied to job—changing jobs may require lease transfer or buyout :contentReference[oaicite:12]index=12.
- Lease complexity: Novated leases are more intricate than simple loans or ownership :contentReference[oaicite:13]index=13.
- Residual payment: Decide upfront how to handle lease-end payment :contentReference[oaicite:14]index=14.
- FBT for non-EVs: Petrol vehicles still attract FBT, reducing savings :contentReference[oaicite:15]index=15.
- Set-up fees & interest: Around 7–9% APR and admin costs apply :contentReference[oaicite:16]index=16.
5. Tesla & EV Lease with Auto-Deduct
Auto-Deduct specializes in ev lease packages for Tesla and other EV brands. Here’s what sets us apart:
- Expert support in selecting streamlined FBT-exempt models.
- Tailored comparisons between EVs and ICE counterparts.
- Transparent cost breakdowns: lease, running costs, GST and tax savings.
- Ongoing support on transfer, residual options, and compliance issues.
6. Comparing Car Lease vs EV Lease
| Feature | Petrol Car Lease | EV Lease (Tesla etc.) |
|---|---|---|
| FBT | Applicable | Exempt under ATO rules |
| Fuel vs Charging | Petrol costs | EV charging, often cheaper |
| GST Savings | Yes | Yes |
| Environmental Impact | Higher emissions | Low/zero emissions |
| Maintenance | Regular servicing | Less frequent, fewer parts |
| Residual Options | Similar flexibility | Same flexibility |
7. Real-Life Novated Lease Story
“I save ~$2.5k in 2 years by leasing a used car under salary packaging—4% interest worked well with my mortgage offset, and I keep the car after lease” :contentReference[oaicite:17]index=17.
8. Is It Worth It?
Studies and user examples show significant savings:
- For someone on $90k with an EV under threshold, annual savings of $3–6k :contentReference[oaicite:18]index=18.
- Tesla Model Y lease could save over $10k across four years compared to hybrid alternatives :contentReference[oaicite:19]index=19.
Ideal if:
- You’re a salaried employee with sufficient tax bracket.
- You prefer bundled payments and no upfront costs.
- You’re drawn to EV technology and environmental benefits.
- You expect residual value to exceed contract value.
9. How to Get Started
- Confirm with your employer they support novated leasing.
- Choose an eligible EV or ICE vehicle.
- Get a quote from Auto-Deduct with breakdowns of all costs.
- Compare pre-tax salary savings vs cash purchase.
- Sign lease, commence packaging and drive away.
- Manage running costs via bundled deductions.
- At end of lease: pay residual, refinance, or upsize to a new vehicle.
10. FAQs
Can I lease any Tesla?
Yes, Tesla models under ATO threshold qualify for FBT exemption.
What if I change jobs?
You can transfer the lease or self-pay if your new employer doesn't support it :contentReference[oaicite:20]index=20.
Are running costs fixed?
They're forecasted and bundled—but any surplus is yours.
Who owns the car?
The leasing company during the term; you can buy it at residual value later.
11. Future of Novated Leasing
While government proposals threaten EV FBT in some cases, both major parties recently committed to retaining the exemption for affordable EVs :contentReference[oaicite:21]index=21. With growing EV adoption, novated novated lease leasing remains a smart, sustainable choice for savvy drivers.
12. Conclusion
A novated lease—especially on a Tesla or EV—can deliver unmatched tax savings, convenience, and eco-conscious driving. With bundled costs, GST benefits, fleet discounts, and FBT exemption, this leasing solution transforms how you finance and enjoy your vehicle. Visit Auto-Deduct today to explore your car lease or ev lease options, and see why novated leasing is reshaping how Australians drive.