Can I claim EV rebate on a novated lease
When considering an electric vehicle (EV) through a novated lease, you may wonder if the government’s EV rebate applies to your situation. The answer can vary depending on where you live in Australia and the specific rebate programs available. Let’s break down how EV rebates work and whether you can claim them on a novated lease.
Understanding Novated Leases and EV Rebates
A novated lease is a salary packaging arrangement where your employer leases a vehicle on your behalf, and the payments are deducted from your pre-tax income. This setup can save you money on taxes while spreading the cost of owning a vehicle over several years.
In Australia, several states and territories offer rebates to encourage the adoption of electric vehicles. These rebates are typically available when purchasing a new EV, but each state may have its own eligibility rules, including whether a novated lease qualifies.
State-Specific Eligibility
New South Wales: The EV rebate of up to $3,000 applies to private purchases of eligible EVs, including novated leases.
Victoria: Rebates for EVs may not cover novated leases but check for updates, as policies can change.
Queensland: The rebate of up to $3,000 applies to private individuals, and there are no restrictions against novated leases.
Other States: It’s worth checking with your local government to confirm whether your novated lease qualifies for the rebate.
The Benefits of Combining EV Rebates with a Novated Lease
If your state allows it, combining an EV rebate with a novated lease can significantly reduce your costs. The rebate can lower the vehicle's upfront price, and the tax benefits from the novated lease arrangement can make driving an EV even more affordable. This creates a double-saving opportunity for eco-conscious drivers looking to transition to electric vehicles.
Final Thoughts
It’s essential to review the specific terms and conditions of the EV rebate in your state and consult with your employer or novated lease provider to confirm eligibility. By doing so, you can enjoy the combined financial benefits of leasing an EV while taking advantage of government incentives.
Ready to drive electric? Contact us today to explore novated lease options and maximise your savings with available EV rebates.