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The government’s making EVs affordable. Here’s how.
You can use your pre-tax salary to pay for a new EV through a novated lease.
Fully tax exempt, including no GST on running costs. No catch. Just a smarter way to drive electric.
A new Mercedes-Benz EQA 250+ Night Edition for $303 a week.
On a $100k salary, that’s what it works out to under a 5-year novated lease, thanks to the EV tax exemption and bundled running costs. Car drive away cost is $89,784.
| Car loan (per week) | Novated lease (per week) | |
|---|---|---|
| Income | $1,923.08 | $1,923.08 |
| Pre-tax deduction | – | $444.90 |
| Taxable income | $1,923.08 | $1,478.19 |
| Tax + Medicare levy | $439.00 | $297.00 |
| Net income | $1,484.08 | $1,181.19 |
| Post-tax payment | $469.37 | $0.00 |
| Take-home pay | $1,014.69 | $1,181.19 |
| Car out of pocket costs (inc running costs) | $469 | $303 |
Use our calculator to get your own estimate in under a minute.
Takes 60 seconds. No personal information required.
You’re not spending more.You’re spending smarter.
When you salary package an eligible EV, you pay for it before tax, not after.
It’s like making a voluntary super contribution, except instead of going into a fund, it goes into a car you actually get to drive.
That lowers your taxable income, saves you thousands, and covers all your running costs in a singe payment – fuel or charging, insurance, rego, servicing, tyres – without GST.
Typical car loan
- Paid with post-tax income from your bank account
- You cover vehicle expenses separately
- Pay GST on the car purchase price and running costs
- No tax savings outside of business use
Novated Lease
- Paid with pre-tax income through your work’s payroll
- All running costs are bundled into one payment – no further budgeting required
- Save over $6,000 on purchase price and pay no GST on your running costs
- 100% of costs are tax-exempt, regardless of whether you use your car for work or not
It’s not a loophole. It’s good policy.
The government’s EV Fringe Benefits Tax exemption was introduced to make electric vehicles more affordable for everyday Australians.
No matter your income, you’re eligible if you’re a permanent employee (or take a salary if you’re a business owner). The only thing that changes is how much you save, depending on your tax bracket.
By using pre-tax dollars instead of post-tax income, you can pay for your car in a way that’s fairer, simpler, and much more efficient. Think like you would when you claim your costs at tax time, except 100% is deductible and it’s taken out before you pay tax, so you don’t have to claim anything.
Here’s how simple novated leasing really is.
1. You choose your car.
Any make or model. New or used, electric, hybrid or petrol/diesel.
2. We set it up with your employer and finance lenders.
We work with your employer to arrange a payroll deduction for your finance, insurance, rego, servicing and running costs that suit your needs. All sorted.
3. You enjoy the savings and your new car.
Payments come from your pre-tax salary, reducing the tax you pay and you no longer have to worry about managing your car costs through your bank account.
4. At the end of your lease, either keep your car or sell/trade it.
To learn more about what happens at the end of a novated lease, click here.
Speak to our teamTrusted by thousands of Australian workers
Great experience provided by Luke, always happy to answer questions and worked hard to bring all the elements together.
Have just settled on a new EV. Customer service is what stood out about PSP. I had one point of contact, Luke, throughout the whole lease application process and he made it easy to negotiate. Thoroughly recommended
Mikaya from Positive Salary Packaging was an absolute delight to deal with, she was always incredibly responsive and able to answer all my questions.
When my car arrived early, she helped push through all the final documents and paperwork so I could collect the care before the weekend!
Thank you Mikayla 🙂
Brittany was amazingly helpful and so easy to contact. Extremely responsive to all my questions and always went above and beyond to help me out. Cannot recommend any more highly
I had an excellent experience with Positive Salary Packaging, thanks to Dan Taylor. He was incredibly helpful, patient, and understanding—especially when I changed my mind on cars multiple times. Nothing ever felt like a hassle.
Dan provided several quotes and was consistently the most competitive in both price and service. He explained everything clearly, made the process straightforward, and handled the entire lease setup efficiently and professionally.
What really stood out was how approachable and easy he was to deal with—no question ever felt silly, and he made what could have been a stressful process feel simple.
Highly recommend Positive Salary Packaging, and if you can, ask for Dan—you’ll be in very good hands.