Can You Claim Electricity on a Novated Lease?
Yes, you can claim electricity expenses on a novated lease, but only in certain situations. If you're driving an electric vehicle (EV) under a novated lease, the electricity you use to charge your vehicle can typically be claimed as part of your running costs. This expense is much like how fuel is treated for petrol or diesel vehicles. For more on novated lease benefits, check out Benefits of Novated Leasing.
Under a novated lease, all running costs—like fuel, servicing, insurance, and maintenance are bundled into one pre-tax payment, giving you significant tax benefits. If you're driving an EV, the electricity used to charge your car replaces traditional fuel costs, meaning you can claim those charging expenses just as you would claim fuel for a petrol car. To understand more about the running costs of a novated lease, visit our blog on How Novated Lease Monthly Payments Work.
However, there are some things to keep in mind:
Charging at home: If you charge your EV at home, you’ll need to track your electricity usage for the vehicle. This can be done with a smart meter or an app provided by your energy company. Some novated lease providers may also offer guidelines or tools to help track these costs accurately. To know more about novated lease providers, check out Novated Lease Providers.
Public charging stations: If you charge at public stations, the cost can be included as part of your running costs in the novated lease. Make sure to keep receipts or records of these charges to submit as part of your novated lease expenses. You can find more on how novated leases work in our blog How Novated Lease Works in ATO.
Reimbursement options: Some novated lease providers have specific processes for reimbursing electricity costs, while others might roll the costs into your regular deductions. You can learn more about the deductions and tax savings in our post on Salary Sacrifice or Buy a Car.
As electric vehicles become more common, the ability to claim electricity on a novated lease can offer significant savings, making EV ownership even more appealing for Australians. You’ll benefit from lower running costs, tax savings, and the environmental perks of driving electric.
Ready to Explore Your Novated Lease Options?
If you're considering a novated lease or wondering how an EV fits into your lifestyle, contact Novated Finance Australia. We can guide you through the process, including how to maximise your savings with an electric vehicle. For more information on novated leases, feel free to check out our Novated Lease Guide.