The Electric Car Discount Act introduced in December 2022 has made electric vehicles (EVs) and plug-in hybrids (PHEVs) more affordable than ever for buyers taking advantage of novated leasing through their employer.
Making electric cars potentially cheaper than their comparable petrol models has seen EV demand soar.
On the flip side, many potential buyers have been deterred by an assumption they’ll be in for a lengthy wait for fuel-efficient vehicles to roll off the ships.
That’s a myth.
Although true for certain models, there are plenty of popular EVs available to access in the short-term.
Discounts driving demand
The Electric Car Discount Act has been a game-changer for employees with access to novated leasing. Its effect is to enable all vehicle running costs to be paid from pre-tax dollars.
Under a novated lease, drivers forego a portion of their salary in return for a packaged car, reducing their taxable income and saving on income tax. The ATO applies Fringe Benefits Tax (FBT) on the novated lease to offset some of that tax reduction.
The new act exempts fuel-efficient vehicles from Fringe Benefits Tax, provided they’re priced under the $84,916 luxury car tax threshold. The results in novated drivers saving thousands more each year of their lease.
An EV this autumn
Given the rush on fuel-efficient vehicles, you’d be forgiven for thinking it could be a while before you get behind the wheel of your very own. In fact, many of the top EV manufacturers have stock arriving with relatively short lead times, or cars on shore with no wait time at all.
With Tesla’s Model 3 becoming Australia’s best-selling passenger car this January, you may expect to have to join the queue.
However, when purchasing from certain states including ACT and NSW, you could access Tesla existing inventory. If you’re flexible on configuration and model year, you have the chance to hit the road swiftly. If you’d rather custom build, you may also be in luck.
Tesla’s vehicle production is ramping up quickly. That also means its cars have become more affordable, with pricing adjusted at the beginning of 2023 on both the Model 3 and Model Y mid-size SUV.
You could be driving away in a Polestar 2 this April.
This minimalist yet distinctive performance fastback is from the Volvo stable, with safety in its soul. Having first landed on our shores last year, it was the third-most popular EV for the year.
Pre-configured standard-range and long-range models are now available (April 2023). Meanwhile, build-your-own models are available from June 2023.
If you’re keen to take one for a spin, Polestar will be opening up test drives in Canberra in early May.
MINI has been leading the charge towards sustainable mobility within the BMW Group since 2008, when it produced the MINI E for field trials that helped inform the successful development of the BMW i3 (launched in 2013).
Designed for cruising whisper-quietly through city streets, the latest MINI Electric Hatch combines the brand’s famed go-kart handling with instant, electrified torque. Plugging into a DC fast charger, it takes just 36 minutes to charge from 0 to 80%.
The lead time for the Mini Electric hatch is approximately three months.
If you’re in need of a second household car, an MG EV could be the runabout you need.
This February, the MG ZS placed first in the ‘Small SUV <$45k’ new vehicle sales category (Federal Chamber of Automotive Industries VFACTS National Report), and seventh in the list of top 10 cars overall.
SG Fleet customers have access to exclusive stock each month (via NSW) of the MG ZS EV and MG HS + EV models.
Busting more EV myths
Despite their growing popularity, a recent SG Fleet survey uncovered that a few common misconceptions remain when it comes to electric vehicles.
Performance and practicality
An impression persists that EVs do not perform well, nor are they practical.
The origin of these myths stems from the initial EVs that were produced, which had relatively tiny battery capacities resulting in lack-lustre acceleration. It’s no longer the case.
Performance records are being set and continuously beaten by modern EVs that can deliver full torque instantly, resulting in faster acceleration than equivalent combustion engine vehicles.
As EVs also have their batteries mounted along the bottom of the vehicle, it creates a lower centre of gravity, meaning increased precision when it comes to handling and cornering.
Notable acceleration in vehicles includes Tesla’s Model 3 Performance Variant, which goes from 0-100kms/hour in 3.3 seconds. On its tail is the Polestar 2 Long Range Dual Motor model at 4.7 seconds.
EVs are also becoming increasingly practical.
For example, the Polestar 2 can tow up to 1500kg (enough for a 6-berth caravan) with its semi-electric retractable towbar – an impressive feat for a sporty fastback.
Meanwhile, the Tesla Model Y’s versatility shows in its ability to fold down individual seats in the second row for carrying all manner of cargo, resulting in a total of 2158L of cargo space.
Battery range
Range anxiety is a factor when it comes to choosing an electric vehicle. Data can help to put this in perspective.
The average Australian drives 100-250kms per week. The average battery driving range is 480km, and thanks to rapidly advancing technology, many new EV models can well exceed that.
Both the Polestar 2 Long-range Single Motor and Tesla Model 3 Performance can travel almost 550km on a single charge.
So, if you’re ready to join the EVolution, there’s no reason you can’t start talking about it with SG Fleet right now.
This article provides general information only about the vehicles, it should not be relied upon. Stock availability is subject to change.
SG Fleet is not the supplier or manufacturer of the vehicle and does not take any responsibility for the vehicle or the information about the vehicle contained in this article. You should make your own independent assessment of the vehicle and other sources of information (including the websites of the vehicle distributor/manufacturer). Not all vehicle variants referenced in this article will be eligible for FBT exemption.
Further limited guidance on the application of the Treasury Laws Amendment (Electric Car Discount) Act 2022 can be found on the ATO website. A Customer considering entering into a novated lease for an electric car should seek their own independent tax, financial and legal advice regarding any proposed arrangement including the impact of such an arrangement from a salary sacrifice and reportable fringe benefits perspective. SG Fleet is not providing the Customer with legal, tax and financial advice regarding the purchase and financing of an electric car.
