Lease a Tesla for the cost of a Toyota Corolla
Looking for your own EV? Consider novating a lease through your employer and save up to $10k PA on your tax return.
About Vehicle Solutions
At evee we are always looking for ways to give back to our customers. This is why we’re excited to introduce our collaboration with Vehicle Solutions – a dedicated EV novated lease partner.
Vehicle Solutions Australia has provided completely outsourced Novated Leases to private and Government sectors for over 15 years. This includes most Federal and State Government departments and a long list of small to medium-sized private businesses. They are friendly, transparent and 100% EV-ready.
What is Novated Leasing?
Lease a fully maintained vehicle while reducing your income tax
In simple terms, a Novated Lease is where the car payments and costs of running your new EV (such as tyres, servicing, insurance and registration) are bundled together and deducted from your pay before tax by your employer, hassle-free, saving you time and money in the process. As a result, the cost of leasing a Tesla Model 3 is comparable to that of a Toyota Corolla.
Whilst Novated Leases are available on used cars, they normally provide the greatest value to drivers looking to get into a new car. And even more if that new car is electric because the Fringe Benefits Tax (FBT) exemption only applies to EVs.
A cost-effective way for EV adoption
This solution is not just about leasing a vehicle; it’s a holistic approach towards facilitating a smarter, cost-effective way for EV adoption for our valued customers. Vehicle Solutions also allows you to choose your own insurance provider. So why not offset some of the costs of your EV through rentals?
Up to $500 cashback
All customers will get $200 cashback when leased via evee plus an additional $300 cashback if you list your car on evee and complete your first booking.
How you'll save
- Let’s say your fortnightly gross salary is $3,000. From that $3,000, the ATO deducts $670 in tax (22%), leaving you $2,330 to spend on your living expenses, including the vehicle.
- If you finance a vehicle with the usual personal financing, you will be paying this and all running costs from the net $2,330 and still paying the full $670 of tax.
- The new legislation allows you to Salary Package the finance and running costs before paying any income tax
- Novated Lease will package all the purchase, finance, insurance and running costs of your new EV up into one simple payment and be deducted before the above tax is taken out. In this example, you save by not paying 22% tax on vehicle costs, or more if you are on a higher tax rate.
- Because these payments are salary packaged, you also don’t pay GST, automatically saving you an additional 10% (GST) on all vehicle costs including charging and service.
Calculate your payments and savings
Get a free, no-obligation personalised quote.
The process is simple
Get a quote in 30 seconds
The calculator only needs a few simple details, and you’ll get a quick quote immediately.
Get a lease pre-approval
Request a detailed quote to complete the application and approval that day.
Select your EV
Once pre-approved, you can access a range of brand-new EVs like Polestars or Teslas.
Sign & receive your EV
Enjoy the drive knowing you’re saving tax plus having all budgeted expenses covered.
FAQs
What is the difference between a regular lease and a novated lease for EVs?
A regular lease is an agreement between you and a leasing company, while a novated lease involves your employer. In a novated lease, your employer deducts the lease payments from your pre-tax salary, which reduces your taxable income. This arrangement is highly beneficial for electric vehicles, as it combines tax savings with the lower running expenses — making it a cost-effective option for sustainable travel.
How do I qualify for an EV novated lease?
To qualify for an EV novated lease, you must be employed by a company offering novated car leasing as a benefit. The process involves selecting an electric vehicle, arranging the lease and getting your employer to agree to salary deductions. Eligibility may vary based on your employer’s policies and the leasing company’s requirements.
What are the benefits of an EV novated lease?
An EV novated lease offers several benefits, including reduced running costs, lower emissions and possible access to government incentives. By leasing through a novated agreement, you can enjoy tax savings and the flexibility to upgrade your vehicle. EVs also provide a quieter and cleaner driving experience, which appeals to those seeking sustainable transportation solutions.
What maintenance is required for an EV in a novated car lease?
Electric vehicles generally require less maintenance compared to traditional petrol or diesel cars. There are fewer moving parts, no oil changes and lower wear and tear. However, EVs still need regular brakes, tyres and battery health checks. Many novated car lease packages include maintenance costs, so your EV stays in top condition throughout the lease term.
If my car is on a novated lease, can I list it for rent on evee?
Generally speaking, you must first consult with the lessor before listing it on the evee platform. Some lease agreements may have restrictions on third-party rentals, so it’s essential to get approval to avoid any breaches of contract.
What running costs are included in the lease?
Vehicle Solutions adds all vehicle running costs to the package to enable you to claim the optimum tax benefit, including the GST savings. These include a lease, all scheduled services, tyres, registration and insurance renewals. You can always add or remove any of these running costs from your package at any time.
What happens at the end of my lease?
The car is yours and is 100% your responsibility. At the end of your lease, your options include:
- Pay out the residual value keeping the car and own it outright
- Trade the car in, paying out the residual value, then novate lease a new car
- Re-lease the residual value over a new term and keep the car. A residual value is deemed by the ATO as the value of the vehicle at the end of the lease. The market value may be considerably higher.
Do I need to do anything at tax time?
No. That is one of the many benefits of Salary Packaging. You get the benefits of the end-of-year tax savings in every pay rather than waiting. So, at the end of the tax year, your employer will issue your Group Certificate showing your reduced pay and reduced tax. Nothing more for you to do.
Do I pay GST on the car?
The simple answer is no. However, this works in the following manner:
- The leasing company pays the dealership the GST included in the purchase, and then claims the total amount. This means you are financing the car exclusive of GST.
- The payments on the lease include GST; however, as you are Salary Packaging the car through your work, your employer claims the GST and this tax saving is passed on to you. This is an ATO guideline used by all Salary Packaging companies.
What happens if I leave my job?
You have several options:
- Vehicle Solutions can contact your new employer and discuss re-establishing your package.
- Your new employer may have already partnered with another Salary Packaging provider. Vehicle Solutions will cancel your package and transfer all money held with Vehicle Solutions Australia to the new provider or your current employer.
- If your new employer does not want to take on your package, Vehicle Solutions simply cancel your package, and you will be responsible for making all required payments in after-tax income as you would have without salary packaging.
Things you should know
Credit is only available to customers referred to Vehicle Solutions through evee or links on this webpage. During the leasing process, you will be supplied with a single-use discount code that will be applied to your account.
The cashback is paid is paid on or around the 15th of every month in arrears. For example, if your notated lease is settled on the 20th of September, the cashback will be paid on the 15th of October.
The additional cash back after the completion of your first booking must be requested by sending and email with your banking details to support@evee.com.au.
