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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
Wonderful experience, the whole team was very patient with me. I took just over a year to decide. Tiarne checked in with me and explained the entire process thoroughly she was great. Highly recommend. Now she has the pleasure of all five of my colleagues wanting the same.
I just finished the process of getting a novated lease with Tiarne from PSP and I must say, the experience was outstanding. Tiarne was incredible helpful through the process as I had quite a few questions and she was so easy to work with. The experience was seamless and finished in just a couple of days. Thanks so much Tiarne and PSP
Awesome experience with Tiarne at PSP! Thank you so much! I cannot believe I’m in my first ever new car. That would have not been possible without Tiarne’s help. Clear communication, quick response, reliable availability to answer calls and texts, great rate and honest follow through. Will def recommend the services of PSP. Thank you. Really appreciate your help.
Tiarne was extremely helpful and responsive, everything she sent through to me was accurate and included any updates I had emailed through. Everything needed from me was clearly communicated well ahead of time and the process to sign up was all done easily online.
Jessica Baigent is an extremely experienced Leasing Finance Specialist. She is 100% committed to her clients finding the best available options. She has made the leasing process super easy and is very knowledgeable about her broad range of products and services.