Jusebert
Member
You are correct. Even at higher interest rates a novated lease without the exemption is not worth it economically.
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Labor Electric Car FBT discount
- Thread starter ENORYM
- Start date
Agree. Under the current tax regime novated leasing doesn't make any sense. When I ran the numbers without the FBT exemption I would out of pocket thousands of dollars if I signed up to such a scheme. To make it worse, novated leasing companies are notorious for hidden fees and they attempt to obfuscate the actual interest rate. Another catch is that the interest usually needs to be paid for the full agreed term, so if your circumstances change and you need to terminate the lease early (i.e. loss of employment etc), you still need to pay the interest for the whole period.
Jusebert
Member
Perhaps if you are comparing it to a personal loan with the full amount. But as soon as you start adding down payments with a personal loan even a 1 year novated lease doesn't make sense from the sums I've done with my employees provider.
I work for a startup in the EV battery industry, and EVs really support our business proposal, so my boss just agreed to cover any FBT expenses should this new law not pass. Lucky for me I know, but if it wasn't for that, there is no way a NL makes sense, even if it's 100% paid from top tax bracket. Only ifnu are driving Bulk KMs per year for work
When I did the sums last year it was versus extending my home loan. Worked out a couple of thousand better off.
New Tech Bj
Member
Keep in mind that you'll have to pay the GST when you pay out your novated lease so the benefit wouldn't be much after only a year..
Jusebert
Member
Yeah that's a reasonable figure but it also all depends on if you are locked into a specific Novated Lease company with your employer. Government employee's that are locked in get hit with all of these rediculous fees and charges. Why am I paying a broker fee of $400 for you to give me a rate twice as high as I could get myself!!?
As always DYOR!
What's worse is that they won't disclose the rate because they know it's ridiculous.
AussieOwner
White M3 2021 LR
Did the amendments fail? Non Plug-in hybrids are a scam (looking at you Toyota) .
Priit
Active Member
I suspect those amendments will be the talking points when it gets brought up in Parliament again. Hope they come to a solution and get it signed off. Its been dragging long enough by now.
Those amendments were from lower house MPs and were disagreed to in the Federation Chamber.
There have been no official amendments proposed yet by either the Greens or Senator Pocock in the Senate.
There have been no official amendments proposed yet by either the Greens or Senator Pocock in the Senate.
The Toyota greenwashing ads on TV at the moment make my blood boil… “we’ve been electrifying vehicles for 25 years” but putting an internal combustion engine in every single one of them sold in Australia. Maybe they are hoping no-one will notice the difference between ”electrifying” and “electric”?
”We’ve only just started”… in which case you are miles behind, Toyota
Number of Toyota battery electric vehicles sold in Australia: 0.
AussieOwner
White M3 2021 LR
From the Guardian Today:
The Greens and the government have agreed on amendments to the Treasury laws amendment (electric car discount) bill 2022 that prioritises electric vehicles over plug-in hybrids that rely on petrol. The agreement also includes shifting the commonwealth fleet to electric vehicles.
The Greens leader and climate change spokesperson, Adam Bandt, has been negotiating with the government in recent weeks to limit funding to petrol-powered hybrids and to increase support for electric vehicles. Without the Greens’ votes in the Senate, the government was unable to pass the bill.
The government has agreed to support changes to the bill that will limit the support for plug-in hybrids and prioritise full electric vehicles, including:
With the amendments sought by Bandt secured, Greens senators will support the EV bill being passed by the Senate this week.
The Gurdian doesnt have a story posted on this but The Age does:
www.theage.com.au
The Greens and the government have agreed on amendments to the Treasury laws amendment (electric car discount) bill 2022 that prioritises electric vehicles over plug-in hybrids that rely on petrol. The agreement also includes shifting the commonwealth fleet to electric vehicles.
The Greens leader and climate change spokesperson, Adam Bandt, has been negotiating with the government in recent weeks to limit funding to petrol-powered hybrids and to increase support for electric vehicles. Without the Greens’ votes in the Senate, the government was unable to pass the bill.
The government has agreed to support changes to the bill that will limit the support for plug-in hybrids and prioritise full electric vehicles, including:
- Sunsetting support for petrol-based plug-in hybrids on 1 April 2025.
- Prioritising zero-emission electric vehicles in the Australian government fleet procurement policy, by removing plug-in hybrid vehicles except in exceptional circumstances.
With the amendments sought by Bandt secured, Greens senators will support the EV bill being passed by the Senate this week.
The Gurdian doesnt have a story posted on this but The Age does:
Cheaper electric cars, hybrids after Greens, Pocock strike deal
New tax breaks could cut the cost of EVs by up to $12,500 after Labor did a deal to pass laws experts believe could “turbocharge” the shift to cleaner cars.
