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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
Luke Harris was fantastic throughout the entire novated lease process. He was in constant contact, kept me up to date at every stage, and was always contactable whenever I needed help. He was genuinely invested in making sure everything went smoothly.
When complications with the vehicle supplier created an extremely tight deadline, Luke and his team went above and beyond and achieved an amazing result to make it happen. Luke also offered to step in and take over coordination with an aftermarket contractor I had already engaged, giving me some much-needed breathing room while I worked through the leasing paperwork.
It was an amazing experience from start to finish. It genuinely felt like Luke was doing it for me — he wanted to see me get the car, and not once did I feel like I was just another client
I’ve had two novated leases where Tom Warby was my point of contact on both occasions. He made the process simple, explained everything clearly, and handled it all efficiently. He is very knowledgeable and highly recommended.
I’d looked into Novated leasing many times previously but had always found it quite confusing, with pushy sales reps that really put me off.
Tom from the Adelaide office came recommended to me so I decided to chat to him about an EV novated lease. Tom was extremely knowledgeable and was able to explain things clearly for my personal circumstances. The pricing was very good and I felt comfortable progressing.
Tom managed and coordinated everything from there which made the process really easy and I picked up my new EV in October 2025.
I’ve recommended Tom to many friends since this time, all of whom have had a similar experience.
Overall I’m very happy with the service provided. Thanks!
Gave me a quote I couldn’t refuse, and turned around the entire process in 2 days! Extremely happy with Luke’s service; he explained everything clearly and made novated leasing seamless and efficient.
I had such a wonderful experience with Positive Salary Packaging. Luke was incredibly helpful, patient and professional throughout the entire process.He explained everything clearly, answered all my questions and kept me updated at every stage, which made the whole experience smooth and stress-free.I truly appreciate Luke’s support and would highly recommend him and the Positive Salary Packaging team to anyone considering salary packaging or a novated lease.