Recent changes to the FBT rules have led to a surge of interest in electric vehicles in Australia. Primarily, this is due to the FBT exemption introduced for electric vehicles under the fuel-efficient Luxury Car Tax threshold (currently $84,916). Learn more about the FBT ruling here.
This can lead to thousands of dollars in tax savings through salary packaging a novated lease when all running costs are exempt of FBT. There is no doubt that electric vehicles are where the market is heading, but is an electric car right for you?
Here are a few thoughts to help your thought processes:
- Lower running costs. Although the upfront purchase price of electric vehicles is generally higher than similar internal combustion engines, the lower fuel and simpler scheduled maintenance costs mean drivers will save significant sums over their ownership period. Transport NSW recently published expected savings of up to 70% for fuel and around 40% for maintenance costs, which could mean an additional $1,000 or more to you every year.
- Electric vehicles offer a level of smooth, quiet driving that is not common among petrol and diesel vehicles, while simultaneously offering greater levels of torque for speed off the mark as well. With many electric vehicles having the batteries underneath the vehicle, a lower centre of gravity provides for better handling than many petrol or diesel vehicles.
- Although undeniably, electric vehicles still need to be re-charged off the grid, the reduction in greenhouse emissions and odours has got to be a positive both for now and for future generations. The use of improving and emerging renewable energy sources will continue to reduce the overall greenhouse emissions output for electric vehicle production as well as their operation.
- Finally, emissions from petrol and diesel vehicles are well documented to expose people to known carcinogens and are responsible for triggering health problems such as Asthma and respiratory disorders in our most vulnerable. The reduction of odours and emissions with the use of electric vehicles is great news for our families and our communities.
So, there are plenty of positive reasons to look at an electric or plug-in hybrid when thinking about your next car. Talk to Prosperity’s vehicle procurement manager, Darren Lewis about the right car for you today.
References:
Why buy an Electric Vehicle? | Transport for NSW
