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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.
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Having dealt with so many of their happy customers, I can tell you first hand that clients absolutely rave about the PSP team, Efficiency, accuracy, knowledge and genuine care flow through the entire organisation. A people first culture, combined with operational integrity. I highly recommend them for your vehicle packaging needs.
Had a great experience with Tiarne at Positive Salary Packaging. She was super helpful and easy to deal with, explained everything clearly, and was always quick to respond when I had questions. She made the whole process really smooth and stress-free!
Tiarne was a very helpful in getting me setup with PSP.
Tiarne informed me that my initial application was rejected by a lender but that didn’t stop her from trying another one which proved to be successful. Despite numerous delays by individuals on my end to complete documentation, she stayed the course until everything was completed. She was also understanding and personable during our phone calls and it was obvious that she was competent at her job. Happy customer with all thanks to her.
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.