salary packaging electric car Page 2

Salary packaging an electric car is like having your cake and eating it too, but with less guilt about emissions. In Australia, this means using your pre-tax income to pay for the lease or purchase costs of an EV, effectively lowering your taxable income. Key benefits include potentially saving thousands on income tax and enjoying fringe benefits tax (FBT) exemptions or reductions, especially for vehicles under the luxury car tax threshold.

Keep in mind:

• Not all employers offer salary packaging for EVs—check with your HR or payroll.
• There might be limits on the value of the car or the amount you can package.
• Be wary of residual values and lease terms if leasing.

For the nitty-gritty and to crunch your numbers, platforms like ServiceCentral can be a helpful resource. Always check the latest ATO guidelines to avoid surprises.