Labor Electric Car FBT discount

[ENORYM]

Just called Smart Salary to enquire if they have any information about leasing yet with the new Labor Policy.
They know nothing yet and it's just "rumours" according to the guy I spoke to..

So yeah, will have to call back in another month or so I reckon to get any information out of the leasing companies

 

[Shoe]

Tesla Lease Calculator I think they just updated theirs.

 

[_ajs_]

Hey everyone, I’m following this issue closely. I have a Feb order M3 RWD, no VIN yet. I’m quietly hoping it *doesn’t* arrive soon to allow time for FBT legislation to pass so I can finance it via a novated lease.

My accountant thinks it’s a good idea, but can’t crunch actual numbers yet. Similarly, smart salary can’t give me a quote with no FBT. All of this is fair enough.

Another question mark is how would this work in retrospect to 01 Jul 22, which is what they promised? I’m wary of signing up to a lease on the promise of something changing in the future.

So many questions! Parliament resumes soon, hopefully this is high on the agenda.

 

[cafz]

I’m quietly hoping it *doesn’t* arrive soon to allow time for FBT legislation to pass so I can finance it via a novated lease.

Back when I last leased a car, it was possible for the leasing company to buy your car from you and lease it back to you, so there's always that option if you decide you want a novated lease after you've already bought the car.

 

[_ajs_]

Back when I last leased a car, it was possible for the leasing company to buy your car from you and lease it back to you, so there's always that option if you decide you want a novated lease after you've already bought the car.

Ahh that’s good to know, thanks. Could provide a safer option if timings don’t work out.

 

[mikkaat]

added this to the model 3 waiting room before I found this thread, so will add here just in case someone here knows a little more.

I have a M3 RWD on order (start June). Today I asked the person I am dealing with for my novated lease about the new FBT rules on electric vehicles and he mentioned that he was not sure if it will apply to vehicles 'ordered' before 1st July (when the rules would take effect from backdating), anyone seen a draft or have any more info on this?

 

[cafz]

I have a M3 RWD on order (start June). Today I asked the person I am dealing with for my novated lease about the new FBT rules on electric vehicles and he mentioned that he was not sure if it will apply to vehicles 'ordered' before 1st July (when the rules would take effect from backdating), anyone seen a draft or have any more info on this?

Seems unlikely, since FBT is incurred on an ongoing basis. Also I think from memory all the existing state and territory incentives have all triggered on delivery (when the "sale" is officially made) anyway.

 

[Jusebert]

I would like to know what happens if you sign up for a 5 year Novated Lease and this exemption doesn't get extended past the initial 3 year period. Are we locked in or have 2 years of a horrible non exempt novated lease?

 

[_ajs_]

I would like to know what happens if you sign up for a 5 year Novated Lease and this exemption doesn't get extended past the initial 3 year period. Are we locked in or have 2 years of a horrible non exempt novated lease?

Yep this is an aspect of the law I’m interested in too. Would seem unfair that it would change established leases, rather than just applying to new ones at the three year mark, but

 

[Jusebert]

Yep this is an aspect of the law I’m interested in too. Would seem unfair that it would change established leases, rather than just applying to new ones at the three year mark, but

I agree - but also have a biased opinion on this haha.

I've asked my Novated Lease company I'm forced to use if they can do an indicative quote pre-legislation passing for comparisons sake

 

[JHole]

he mentioned that he was not sure if it will apply to vehicles 'ordered' before 1st July (when the rules would take effect from backdating), anyone seen a draft or have any more info on this?

FBT is an ongoing charge, it would be billed as an exemption to certain fringe benefits (there are many already) and it would have no relevance to when you ordered the vehicle. If anything I think the law will be dated to the start of the FBT year, not 1 July, makes more sense.

 

[JHole]

I would like to know what happens if you sign up for a 5 year Novated Lease and this exemption doesn't get extended past the initial 3 year period. Are we locked in or have 2 years of a horrible non exempt novated lease?

Generally your tax savings are front loaded, but yeah if you locked yourself into a 5 year financing deal you would need to break the finance contract at whatever charge is applicable.

 

[_ajs_]

I agree - but also have a biased opinion on this haha.

I've asked my Novated Lease company I'm forced to use if they can do an indicative quote pre-legislation passing for comparisons sake

I'm married to a crappy company as well - SmartSalary by any chance? I'm pretty sure their finance rate are horrendous. They are so opaque with their quote - there's a (big) number that just says "leasing fee" in the quote. I'm pressing them hard to break that down for me - how much is finance, brokerage, admin fees etc. They're being very stubborn. They also refuse to give me an indicative cost comparison if there were no FBT, saying that it's just speculation so not worth their time.

Either way my M3 isn't here yet, so I'm just sitting on my hands until the legislation passes which I'm increasingly confident will happen before my car arrives.

 

[Jusebert]

I'm married to a crappy company as well - SmartSalary by any chance? I'm pretty sure their finance rate are horrendous. They are so opaque with their quote - there's a (big) number that just says "leasing fee" in the quote. I'm pressing them hard to break that down for me - how much is finance, brokerage, admin fees etc. They're being very stubborn. They also refuse to give me an indicative cost comparison if there were no FBT, saying that it's just speculation so not worth their time.

Either way my M3 isn't here yet, so I'm just sitting on my hands until the legislation passes which I'm increasingly confident will happen before my car arrives.

Remserv is mine - however SmartSalary is the other option but you can only switch in a 2 month period at the end of each FBT year so its good to know the grass is not greener.

Remserv's current comparison rate is 9% (they don't list the actual interest rate which is annoying). The comparison rate includes a brokerage fee of $1400.. which I'm sure they just pocket and go with the agreed financier that they get the best commission from. And they also charge a $400 finance establishment fee. Both of these get added to the length of your lease.

When I pushed them on the brokerage fee and how it's ridiculous that I can get a finance rate less than half what they could I was pretty much told that is their business model. It is still probably going to be more beneficial even with all that BS to go with a novated lease once they make the FBT exempt though.

 

[Jusebert]

Looks like Remserv can provide indicative qoutes with FBT exemption for EV's from next week. I'll report back once I have a new quote

 

[skyworxx]

I'm not considering a novated lease as I am incorporated, but my plan is to have the company buy the car and whenever the FBT exemption ends, I personally buy it off my company for its deprecated value.

Anyone else planning on doing something similar?

 

[Blaq]

I'm not considering a novated lease as I am incorporated, but my plan is to have the company buy the car and whenever the FBT exemption ends, I personally buy it off my company for its deprecated value.

Anyone else planning on doing something similar?

Ditto!

 

[BareFeetTom]

I'm not considering a novated lease as I am incorporated, but my plan is to have the company buy the car and whenever the FBT exemption ends, I personally buy it off my company for its deprecated value.

Anyone else planning on doing something similar?

Yeah, something like that. I am planning for my small company to buy the car, then fully expense it over one year or maybe three years. No FBT for personal use. If/when FBT exemption ends, then I might personally buy it, depending on personal usage at the time etc.

 

[Jusebert]

In true fashion I got mixed messages from Remserv and now have to wait until the legislation passes for an indicative quote.

I guess they are just being super careful, but annoying when I was literally told last week I would be able to get an indicative quote this week by someone else there. Eyes on Parliament this week now! They have 4 days (3 this week and Monday next week) to get any legislation through to the senate if it's to be passed before September.

 

[_ajs_]

In true fashion I got mixed messages from Remserv and now have to wait until the legislation passes for an indicative quote.

I guess they are just being super careful, but annoying when I was literally told last week I would be able to get an indicative quote this week by someone else there. Eyes on Parliament this week now! They have 4 days (3 this week and Monday next week) to get any legislation through to the senate if it's to be passed before September.

I had a quick scan through the list of draft bills proposed for this session and couldn’t see anything obvious. That’s not saying much though, titles are often obscure. They want to pass the new renewables target ASAP, could be buried in there. Fingers crossed.