Claim EV Lease on Tax (Not with Novated Leasing Company) ?

amorphous2111 on 15/06/2024 - 22:46

Hi all,

I saw an ad from BYD for leasing of a BYD Dolphin including all the insurance, tires, rego etc for $560 per month. Doing the same via my employer’s preferred (mandantory) novated leasing company is $1050 before tax… so basically the same for the highest tax braket ($1050*0.55 after tax benefit) and far worse if your income is lower. Basically the tax you save goes straight to the pocket of the leasing company, rather than road, school etc…

Is it possible to just lease an EV directly from BYD and claim the leasing cost on tax? Or it must be done through a novated leasing company?

Thank you,

A

Automotive Electric Vehicle

Comments

  • Roentgenium on 15/06/2024 - 23:16
    +1

    novated leasing is where you are entering into a salary sacrificing arrangement and getting a car.

    what you're proposing is not salary sacrificing. unless you're using the vehicle for work purposes, there are no deductions

  • Hybroid on 15/06/2024 - 23:38

    It's still involves a leasing company, Maxxia.

    Take note of the 5 year contract, 'from' $560 and 28% balloon payment.

    You'll end up paying far more than the vehicle's cost outright. That's before taking into account depreciation.

  • [Deactivated] on 16/06/2024 - 00:32
    +2

    The answer to your question is No. For some reason cough corruption cough the only way to achieve "salary sacrificed" leasing is through a leeching lease company. There is apparently 1 or 2 out there that are actually ok and let you self manage basically everything, but most corporations that even offer salary sacrifice, only do so to a single exclusive approved leasing provided be it LeasePlan or SGFleet (which Is now the same leech) or one of the other mobs.

    My company only uses LeasePlan but I could not see anyway that it made any sense to lease vs buy/loan. In every scenario I maybe ended up slightly better off overall, but 80%+ of the "savings" were going to the leeching company, and like you I would much rather just pay my taxes then save '5k' in tax to give 4k of it to some vulture company so some exec can buy a new yacht. Not genna sell my soul for a netgain of a big mac meal or 2 a week

    • coffeeinmyveins on 16/06/2024 - 01:57
      +2

      Not genna sell my soul for a netgain of a big mac meal or 2 a week

      Hand in your ozb membership card please

    • Roentgenium on 17/06/2024 - 07:06

      it's less about corruption and more about making it as efficient and simple for the payroll people at your organisation

  • Pikaloo on 16/06/2024 - 08:41

    So if you read the terms of the actual lease direct from BYD they use Maxxia and it's a novated lease, and it's $560 because that's cost out of pocket to you if you lease for 5 years and have X salary and that's the number you get after the tax savings you get from a novated lease.

    TLDR: It's a novated lease that BYD are offering through maxxia.

    https://bydautomotive.com.au/event/byd-dolphin-novated-lease…

    • May4th on 16/06/2024 - 09:06

      isn't that just a finance plan without the tax benefits? your employer has to offer NL to make sure the payments are made pre-tax. so this is all the bloat and cost without the tax benefit. you are better off sourcing your own finance.

      to answer OP's question, you can't claim the interest unless the vehicle is for business purpose, ATO is very strict on this, home to work wouldn't count

      • Pikaloo on 16/06/2024 - 10:36

        BYD is just offering a novated lease. So it's a novated lease. It isn't a finance plan through BYD. Salary sacrifice through employer.

        • May4th on 16/06/2024 - 10:44

          yes I understand but your employer has to be on board with that.. a lot of employers only lets you go through their preferred provider so it's something you'd have to check prior

          • Pikaloo on 16/06/2024 - 10:49
            +1

            @May4th: Yes. So there isn't an alternative. It's either a novated lease or a novated lease. Both with same/similar savings.

    • amorphous2111 on 16/06/2024 - 14:14

      Yeah my bad. I didn’t actually look into the details just thought of it as BYD lease.

  • sumyungguy on 16/06/2024 - 11:51

    You have to go with your employer's salary packaging provider. Unless they agree otherwise?

Login or Join to leave a comment
Login Join