Premium connectivity as a running cost in novated lease

[GeoQuack]

Maxxia, my salary packaging provider (unfortunately), are not allowing me to claim premium connectivity as a running expense for the car. Apparently this is because it's not essential and therefore not a claimable expense. This sounds like BS to me but I'm interested in others' experience.

Paying someone to wash your car is also not essential, but it is an expense and is claimable...

 

[jamesgo]

It's $9.99 per month... would you even notice it? Just pay it by credit card...

 

[meloccom]

Maxxia, my salary packaging provider (unfortunately), are not allowing me to claim premium connectivity as a running expense for the car. Apparently this is because it's not essential and therefore not a claimable expense. This sounds like BS to me but I'm interested in others' experience.

Paying someone to wash your car is also not essential, but it is an expense and is claimable...

It often takes the ATO a while to catch up with new things. I had a claimable trip in 2015 and gave it to my accountant to claim against tax. It was declined as my car did not have a cubic capacity to calculate the rate of the claim at the time. I understand that this has since changed.
The biggest irony is that I was conducting training for a new system being introduced by a client of the IT firm that I was working for at the time. The clients name? The Australian Taxation Office!
Still it can be argued that regularly washing your vehicle is part of maintaining the car to stay within the terms of your lease contract, it’s harder to argue that premium connectivity as an expense.

 

[Nevyn72]

Maxxia, my salary packaging provider (unfortunately), are not allowing me to claim premium connectivity as a running expense for the car. Apparently this is because it's not essential and therefore not a claimable expense. This sounds like BS to me but I'm interested in others' experience.

Paying someone to wash your car is also not essential, but it is an expense and is claimable...

This is pretty much exactly what my provider (Custom Fleet) said.

Apparently the ATO classify in the same category as things like GPS navigation subscriptions and disallow it...
When you consider what premium subscription actually provides this isn't far from the truth.

 

[cafz]

This accounting firm has an information page about EV leases that covers this and a few other similar things.

 

[Quickst]

Basically a lot of accessories fall into the the same "not claimable' territory
Paint protection rust proofing, window tinting included
Even EAP and FSD as well

I would consider spare tyre/space saving tyre/tyre repair kit to be essential

Think of premium connectivity to be the same category as a Spotify paid account.

 

[schnaxxl]

Maxxia, my salary packaging provider (unfortunately), are not allowing me to claim premium connectivity as a running expense for the car. Apparently this is because it's not essential and therefore not a claimable expense. This sounds like BS to me but I'm interested in others' experience.
Paying someone to wash your car is also not essential, but it is an expense and is claimable...

I'm also leasing via Maxxia, my sixth lease with them
they told me that they had a special understanding of EVs generally and Tesla in particular
turned out that they didn't
first item: I received a BP fuel card
then I discovered that they had budgeted my lease including petrol purchases of $# per forthnight
not only that, they bounced a claim for reimbursement of charging at superchargers and it took some arguing to get them to cooperate
so they're really not up to speed
nor are BP - its not entirely clear to me why I can't use my card to pay for their Pulse charging

 

[schnaxxl]

Basically a lot of accessories fall into the the same "not claimable' territory
Paint protection rust proofing, window tinting included
Even EAP and FSD as well

I would consider spare tyre/space saving tyre/tyre repair kit to be essential

Think of premium connectivity to be the same category as a Spotify paid account.

Paint protection was included in my lease agreement
I declined the offfer of tinting
Maxxia were ok with bundling various Tesla accessories including the wall charger, but Tesla wouldn't agree to it

 

[Quickst]

wall charger

It's tricky. Best check with accountant if wall charger is claimable even if wrapped up into a lease

 

[schnaxxl]

It's tricky. Best check with accountant if wall charger is claimable even if wrapped up into a lease

I bought it separately

 

[534D]

My NL provider also told me up front during the quote process that Premium Connectivity wasn't able to be covered in the running costs.

Maybe it's one of those things that ATO might change in future but it feels like more of a luxury option than a true running cost which feels fair to me that it can't be claimed.

 

[jamesgo]

I'd say the wall charger shouldn't be part of a novated lease. Cause it's not like you're able to easily rip it out in a few months should you choose to stop the lease.

 

[534D]

I'd say the wall charger shouldn't be part of a novated lease. Cause it's not like you're able to easily rip it out in a few months should you choose to stop the lease.

It's not part of NL. Cost of wall chargers and installation have to be counted separately for FBT apparently.

 

[Quickst]

It's not part of NL. Cost of wall chargers and installation have to be counted separately for FBT apparently.

Correct and diaries kept

 

[GeoQuack]

I'm also leasing via Maxxia, my sixth lease with them
they told me that they had a special understanding of EVs generally and Tesla in particular
turned out that they didn't
first item: I received a BP fuel card
then I discovered that they had budgeted my lease including petrol purchases of $# per forthnight
not only that, they bounced a claim for reimbursement of charging at superchargers and it took some arguing to get them to cooperate
so they're really not up to speed
nor are BP - its not entirely clear to me why I can't use my card to pay for their Pulse charging

They are a rent seeking monopoly with levels of service concordant with this. Everything has been difficult and delayed. They did not budget for sundries so I've had claims for cleaning refused even though there's more than enough money in the account. I have a number of colleagues who have recently bought EVs and their experience around delivery time has been even worse than mine, which is saying a lot. Although it will be financially beneficial to extend my lease when it ends, I may not just to avoid all the frustration of dealing with Maxxia.

 

[schnaxxl]

They are a rent seeking monopoly with levels of service concordant with this. Everything has been difficult and delayed. They did not budget for sundries so I've had claims for cleaning refused even though there's more than enough money in the account. I have a number of colleagues who have recently bought EVs and their experience around delivery time has been even worse than mine, which is saying a lot. Although it will be financially beneficial to extend my lease when it ends, I may not just to avoid all the frustration of dealing with Maxxia.

it worked out better when I got to talk to someone about the issues
they do everything to prevent that, of course