The recent “Electric Car Discount” policy means that Fringe Benefit Tax exemption is applied across Tesla models up to the Luxury Car Tax threshold ($91,387 for the 2024/25 financial year). The FBT exemption also applies to most vehicle running costs covered by a novated lease.
Tesla savings with a novated lease
The FBT exemption will make a significant difference to the overall cost of your Tesla and paying for running costs.
Here’s an example cost comparison for a 2023 Tesla Model 3 (including running costs), financed with a novated lease, a car loan and paid for outright using cash. The calculation is based on a 5-year term and factors in the fringe benefits tax exemption, plus the GST savings on the vehicle purchase and running costs available with a novated lease.
The calculation assumes a driver based in NSW with annual pre-tax salary of $120,000 and a car loan interest rate of 7.5% p.a. Running costs based on 15,000km driven per year and include insurance, registration, servicing and tyres.
Government policy for EV savings
These tax savings are policy. As stated on their websites:
“If a $50,000 model is provided through employment arrangements, Labor’s fringe benefits tax exemption will save employers up to $9,000 a year.
Often FBT is passed on to employees – and those employees will benefit directly from Labor’s policy.
Savings will be even higher for more expensive models (up to the luxury car tax threshold).”
)
Tesla have the most popular electric cars being novated in 2024
The Tesla Model Y is the one EV that stands as the clear Australian favourite, far outpacing its competitors sales.
To learn how much more you can save with a novated lease speak to one of our team today.
If you want to see what other perks are available for EV drivers in your part of the country, read our guide to EV incentives and rebates in Australia.
Get the best Tesla deal with a novated lease
Find my best deal
