novated lease ev victoria Page 4

Short version: in Victoria, a novated lease on an eligible EV can be a tax‑savvy no‑brainer thanks to the federal FBT exemption for zero‑emission cars. If the car is below the Luxury Car Tax threshold for fuel‑efficient vehicles and was first used after 1 July 2022, lease payments and running costs can largely be salary‑packaged pre‑tax, slashing your taxable income. Plug‑in hybrids lose the FBT break from 1 April 2025 (existing arrangements are grandfathered), but pure EVs keep the party going. Victoria doesn’t add a special FBT of its own, so the rules mirror the national setup; the infamous per‑km EV charge has been struck down, which rather helps. Net savings vary by income, vehicle price and kilometres, but many drivers effectively save thousands a year while bundling rego, insurance and servicing. Have HR and the lease provider run the numbers for your situation, then enjoy smugly wafting past servos like they’re museums.