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I might be showing my ignorance with this comment / question, but if there’s anyone who’s savvy with novated leases, I’d like to understand this better…

With Labor’s policy to make EV’s below the luxury car threshold exempt from FBT, say I had a current (pre FBT-exempt) novated lease quote for a M3 at $66k drive away, on a lease of 5 years, and the leasing company quoted me a pre-tax / post-tax deduction of $240 / $510 respectively per month.

When FBT exemption kicks in, does the $510pm post-tax deduction simply get wiped from the amounts paid per month? Or does some of the amount covered by thr “post-tax deduction” get reassessed as a pre-tax deduction? And if so, any clue as to what vague reassessed figures we’d be looking at?

My understanding is the lease costs 750 monthly in total and to offset FBT you contribute to the lease out of your own pocket (post tax $510 in your example). Once the legislation kicks in the lease will still cost 750but as there's no FBT so you won't need to provide personal contributions from your pocket to offset it. Therefore full 750 will be pre tax. That's my understanding happy to be corrected and am waiting till July for lease company to do me a quote... If my thinking is correct it'll provide some modest savings
Yep, keen to hear from anyone who understand how this will work. There were *speadsheets* involved in the novated lease I have already been approved for, and I may have to do more *speadsheets* to understand the impact of this new policy.
I’ll be reaching out to the leasing company on 1 July to see what a requote looks like, but any heads up would help…
Basically my understanding is that they will have to adjust, and that any quote is fluid until payment is required for the car… WHEN IT TURNS UP
 
Yep, keen to hear from anyone who understand how this will work. There were *speadsheets* involved in the novated lease I have already been approved for, and I may have to do more *speadsheets* to understand the impact of this new policy.
I’ll be reaching out to the leasing company on 1 July to see what a requote looks like, but any heads up would help…
Basically my understanding is that they will have to adjust, and that any quote is fluid until payment is required for the car… WHEN IT TURNS UP
My understanding is the same as AndrewSA: When it's exempt, it can all be funded pre-tax (so in the example it would go to $750 pre-tax, $0 post-tax). The saving you make is the tax you don't pay on the $510 - instead of reducing your take-home pay by $510, it's reduced by a smaller amount (depending on your marginal tax rate).
 
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Yep, keen to hear from anyone who understand how this will work. There were *speadsheets* involved in the novated lease I have already been approved for, and I may have to do more *speadsheets* to understand the impact of this new policy.
I’ll be reaching out to the leasing company on 1 July to see what a requote looks like, but any heads up would help…
Basically my understanding is that they will have to adjust, and that any quote is fluid until payment is required for the car… WHEN IT TURNS UP
You can check online now. Go to smartleasing.com.au (or any other provider), and do a quote. Then redo the quote and choose ‘charity’ as the business type as they don’t pay FBT. It reduces the payments significantly. Eg a quick quote was $789 normally a month reduced to $540 with no FBT.
 
Complete Frunk / Trunk (put this in a mates)


Trunk Only (this is what I got sitting in study)


It is easy enough to install.
 
You shouldn’t but, particularly to rear, makes quite a difference.
I've heard of them being used before but have wondered if it really makes a difference.

Was trying to imagine our CX5 without the engine noise and hearing tires and wind noise etc.
I guess the quieter the car becomes the more obvious those noises become.


Have bookmarked this page, similar to the floor matts, am trying to wait until VIN comes before more purchases in case there are slight changes to the M3 that would need a different accessory.
 
I've heard of them being used before but have wondered if it really makes a difference.

Was trying to imagine our CX5 without the engine noise and hearing tires and wind noise etc.
I guess the quieter the car becomes the more obvious those noises become.


Have bookmarked this page, similar to the floor matts, am trying to wait until VIN comes before more purchases in case there are slight changes to the M3 that would need a different accessory.
Yes, I am waiting for the car to arrive to see if I need some things, like floor mats etc. Probably, in reality, if it’s not too costly, I buy it. I’ve worked out I wanted the centre spacer for the cup holder rather than the full silicon inserts, even though I have both.

1656102361959.jpeg
 
I've heard of them being used before but have wondered if it really makes a difference.

Was trying to imagine our CX5 without the engine noise and hearing tires and wind noise etc.
I guess the quieter the car becomes the more obvious those noises become
particularly the rear made a difference to my mates Tesla. I bought the rear only (even though I meant to buy both). I am happy with that at the moment. i bought it after his DW got in the car and when he drove she said, “what have you done, it sounds quieter”

Although it was quieter after adding the front, it was marginal, if at all, but I thought the rear did make a difference, I guess I’ll find out if I wasted my money.
 
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Yes, I am waiting for the car to arrive to see if I need some things, like floor mats etc. Probably, in reality, if it’s not too costly, I buy it. I’ve worked out I wanted the centre spacer for the cup holder rather than the full silicon inserts, even though I have both.

View attachment 820649
Had one of these in our Kluger, but got removed so often it ended up lost.

Looks nice though - matches the theme well



Might go with my winter seat and wheel cover set or not ;)
 
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Yeah, I'm a little worried about that too - never know when a 4 day factory shutdown will change the shape of the footwells or the centre console or the screen size / shape, etc.
Trying to delay further accessory purchases until I have a VIN - but some of those accessories look so cool!

And to get something with Telsa Model 3 in the name/description arrive quickly and on or before the delivery date the website says! 🤩
Or Samsung cameras ...
 
Oooooooooh! So our production days maybe not impacted?

That would be ideal! But never underestimate Tesla’s ability to find new and creative ways to further delay our orders. :)

In this case, they may use all 12 days of M3 production in July to build cars for lucrative export markets with longer transit times (i.e. Europe) to ensure those deliveries happen by end of quarter. We’d still get some cars in this scenario, but probably not until September.

This Tweet suggests as much:

 
That would be ideal! But never underestimate Tesla’s ability to find new and creative ways to further delay our orders. :)

In this case, they may use all 12 days of M3 production in July to build cars for lucrative export markets with longer transit times (i.e. Europe) to ensure those deliveries happen by end of quarter. We’d still get some cars in this scenario, but probably not until September.

This Tweet suggests as much:

Isn't this just some dudes on Twitter speculating in the same manner as us at a time when there was less info available? The stuff the second guy is saying we know isn't correct. From the last production cycle, we know they cut over to domestic production mode regardless of whether APAC cars are produced or not. The date was the trigger, likely as a result of scheduled transport trucks for domestic and also Chinese head honchos naturally favouring China (the head of Tesla China was quoted as saying they are striving for a bigger share of production for China recently). So if his scenario played out, we'd be delayed to the export production in the 4th quarter, not picked up in August. Plus historically export production is done by mid-late July.

Incidentally, where did Vedaprime's schedule come from? I know that's a ridiculous question to ask because Vedaprime requires money to help us suss this biz.
 
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