Is Salary Packaging an EV Worth It?
Salary packaging an electric vehicle (EV) has become an appealing option for many Australians, offering a smart way to make the switch to greener driving. But is it really worth it? Let’s explore the key benefits to help you decide if salary packaging an EV is the right choice for you.
Tax Savings
One of the biggest advantages of salary packaging an EV is the potential tax savings. When you salary package, the cost of the car and its running expenses are deducted from your pre-tax income. This reduces your taxable income, potentially lowering the amount of tax you pay. For many, this results in significant financial savings, particularly for those in higher tax brackets.
Lower Running Costs
Electric vehicles are generally cheaper to run than petrol or diesel cars. With no fuel costs, reduced servicing needs, and fewer moving parts, the ongoing maintenance of an EV can save you thousands over the life of the vehicle. When combined with the tax benefits of salary packaging, these lower running costs make an EV an even more attractive option.
Environmental Impact
If reducing your carbon footprint is important to you, salary packaging an EV allows you to contribute to environmental sustainability while enjoying financial benefits. By driving an electric vehicle, you’ll be reducing greenhouse gas emissions, supporting cleaner air, and helping Australia transition towards renewable energy.
Incentives and Rebates
Many states and territories in Australia offer incentives and rebates for purchasing electric vehicles, which can further enhance the value of salary packaging. These could include discounts on registration, reduced stamp duty, or rebates on the purchase price of the vehicle. Be sure to check what’s available in your state to make the most of these additional savings.
Salary packaging an EV can be a smart financial move with tax savings, lower running costs, and the chance to contribute positively to the environment. While the initial cost of an electric vehicle might seem high, the long-term benefits often outweigh the upfront investment.
Ready to make the switch? Contact us today to find out how salary packaging an EV could work for you!