Likely for a limited time, it appears Tesla is running a novated lease incentive. The incentive is not currently displaying on the Tesla AU website, however the deal is being promoted by leasing company Smart (https://www.smart.com.au/p/tesla/).
Likely wont update on Tesla AU until tomorrow (when the deal begins). Will update this tomorrow!
Referee gets $350 off Model Y & 3 purchase.
Referrer gets $150 credit toward Supercharging, software upgrades, merchandise, service payments or a new vehicle. Limit of 10 referral benefits per calendar year.
FBT exemption for EV started in 2022
has/is the FBT exemption ending?
It’s being “reviewed” in 2027 with plug in hybrid ending in May this year. So likely scrapped in 2027
Edit: April, not May.
To be reviewed in April I believe
How does the FBT Government rebate work, as i have a Novated lease on Tesla M3LR and im paying the same amount a fortnight as if i was working at say Toyota. I questioned the lease company and they were like, meh we dont know.
It isn’t a rebate.
Normally, FBT is charged as a tax on the benefit you gain leveraging a NL to lower your tax bill. At present, an EV is exempt from this, allowing you to leverage a NL to lower your taxable income, but this not attracting a FBT liability.
@ajr5k: Seems as though finance isnt my thing, thanks for trying to explain, but i thought it dropped your fortnightly payments. Might have made a mistake lol
@BatmanAU: It does when compared to a traditional loan and repayment system. The core difference is using pre-tax income for the vehicle and runnings costs, and not having to pay GST on the vehicle as it isn’t you buying it.
No stress, I get it is complex… the joys of tax minimisation 🙂
@ajr5k: Gets more complex when it's wrapped into an inscrutible deal of various costs for petrol, tyres, servicing, bundled under the one rate. I gave up trying to see how much it might benefit me. My employer designated provider is maxxia who are apparently awful.
@gakko: The more stuff you bundle in, the more stuff you buy using pre-tax income rather than post tax income, which is effectively a discount on rego/tyres/insurance/roadside/petrol etc etc at your marginal tax rate.
@gakko: @gakko maxxia is one of the better ones actually. There are several calculators that helps to determine the exact saving but in general if you can get the same interest with home loan and you drive min 15000km a year then you will save a lot
@BatmanAU: In a nut shell: if there is FBT, you will to pay the lease as a combination of post-tax and pre-tax. If there is no FBT, you can pay the lease all pre-tax.
Highly unlikely.
Yer but rates are like 10% these days for car loans. That 3500 wouldn't even cover the first years interest.
Apparently you know nothing about salary sacrifice or pre-tax. Your tax bracket is way higher than that 10%.
Even with that aren't you still down a couple of thousand on interest?
Not when in the highest tax bracket. I got a quote and my interest rate came in at 8% and being in the highest tax bracket it was definitely worth while. I believe if you are sitting in the 30% tax bracket you break even, anything below that definitely not worth it.
@Iwantthebestprice: I just NL'd a hybrid EV that doesnt qualify for FBT exemption at 8% and its still cheaper (from my end) than buying cash (assuming mortgage).
@japes: I’m also looking at doing the same, I was looking at getting a hybrid and had my mind set on a RAV4 but it does not qualify as it’s not a BHEV but after doing quotes still seems to be better. Having a mortgage definitely helps as the money stays in offset.
@Iwantthebestprice: I went for an EV X-Trail - quotes from Remserv and other big providers were absolutely absurd, hundreds of dollars different a fortnight.
Ended up with FAA (I'm in Government) and it was cheaper than anything the dealer could provide, including 3.9% finance promo.
@japes: Damn that’s a good rate. Being stuck in corporate I could only go with SGfleet and I negotiated hard and best they could do was 8.99% it’s not the worst I’ve seen some truly absurd NL interest rates on this site. If I could lock in a 3.9 promo rate I would jump in a heartbeat.
@Iwantthebestprice: The 3.9% was a Nissan promo and capped at 36 months, but even with various situations/bubbles, 8% salary sacrificed was still less out of pocket for me over the life of the loan.
@ajr5k: It's an EV Hybrid but not PHEV (X-Trail ePower). I was confident I'd need FBT exemption to make a novated lease worth it but was pleasantly surprised after shopping around.
@japes: Ah right makes sense.
Likely still worth to package up your rego and insurance using pretax income and save the 10% GST on the upfront costs.
Glad it’s worked out 🙂
Even if you are in the lowest tax bracket you are still saving 10k per year (lease term 1-2 year) because you are not dumping 30% to ATO. The few thousand interest you are paying is nothing. Get a quote and you will understand.
And don't forget with novated lease you save 10% GST upon purchasing the car, that's also higher than the interest you are mentioning.
@NoBargainNoLife: That’s true, anything is better than giving the money to the ATO if you can avoid it, but you need to remember you pay GST on the ballon payment.
@Iwantthebestprice: Have a BYD Seal premium. 4 years novated has a ~21k balloon…still seems worth it to me.
@teereb: It would be worth it but the longer the lease goes the less worthwhile the savings are I believe. I was told, and this could be wrong, that 2 years in the sweet spot for NL
@Iwantthebestprice: Depends on your financial situation.
For me I chose 4, and considered 5, but 4 was a slightly better sweet spot.
Everyone has a different position with cash flow, and this works best for me.
The balloon seems worth it is what I meant; but that may change depending on what finance deals are on when the balloon is due, or what other cars are out there.
@teereb: Definitely agree, btw how are you finding the BYD seal premium? It’s the only other EV I’m considering over Tesla, and I’ve seen a few in the shopping centre car park etc and they do make double take they have an impressive look.
@Iwantthebestprice: Have you considered the Kia EV5? Its equivalent size and price to the model Y but actually is a car inside instead of a spaceship or minimalist artwork
@jd3: No but just checked it out and looks good, also like the colour range more then Tesla, will check it out! I do prefer the display infront of the steering wheel, that’s one thing that really annoyed me about the Tesla when I test drove it was looking over to the screen to see my speed.
@teereb: 5 will likely be cheaper than 4 or 3 when you consider the tax deductions. When I worked it out in December, a $65k EV over 5 years was the cheapest option if you were planning on keeping the car for 5 years anyway. Total cost of ownership for a $65k car over 5 years was $67k including residual payout, tires, rego, insurance and maintenance. Beats even paying cash. Massive gov subsidy.
@teereb: I have done the exact same. kept my other diesel cars and accounting for fuel saved alone I am at least close to even
@NoBargainNoLife: Ahh that may be where our calculations may be differing. I was calculating a 5 year lease term. Which would result in substantially lower monthly repayments (and as a result deductions).
Also yes as per the above posts if it's say 8% and you are in a higher tax bracket and doing a 3 year loan you would also be ahead.
My calcs were 10%, 5 year loan on a 50k sum. Just napkin math.
I also didn't know about this GST saving. I'll look it up.
@MrMoo: I found doing year on year is better as you don’t lock yourself in as long as your cash flow allows.
And you can extend your lease after each year.
@NoBargainNoLife: Thanks, noted. Thanks for the education tonight.
As I am looking in getting one for my wife one day.
@MrMoo: All good. I am extending my lease for 6 months from this months so I will get the new Y later this year. :)
@NoBargainNoLife: Nice! Enjoy the new car later this year then =)
I think it looks pretty slick, better than the old one. Will check out some reviews and probably pick up the Y for the wifey over the next 1-3 years.
@MrMoo: Cheers mate.
I am still enjoying my 2022 model 3 but wife complaining the seat position (a bit too low) otherwise I will stick to it for life 😂
I have driven it between Canberra and Sydney every month, and to Adelaide via Mildura or Melbourne multiple times. Never had any range anxiety thanks for Tesla super charging network.
It’s a life style thing.
And I forgot to mention with that 60k cash in hand you will also generate a few K cash every year with current 5.5% interest.
@NoBargainNoLife: For PHEV, you wouldn't be able to extend beyond your initial term if takes place after 1st April 2025.
@NoBargainNoLife: You also pay less interest this way, as the value drops quicker in the first year. (I.e. paying $15k principal in year 1, then $5k in year 2, instead of $10k per year) But you have to pay more per pay in the first year.
@NoBargainNoLife: With novated lease, you are paying (albeit a little less) to the leasing company instead of ATO. It depends on who you hates the most. I hate these vulthurous leasing companies with a passion so I'd rather pay ATO (at least some of money will go to someone in need).
Depends on your quote. I've heard of people getting quotes from as low as 6.7% and as high as ~13%.
Thought this has been running for at least a month?
Previous ended at the end of 2024, and was $3,000 (https://www.ozbargain.com.au/node/874298/comments)
Hopefully they’ll up the referral incentive to $1,400 like last qtr
Please explain to me. Needing a new car. We do very low kilometres though (10000-12000km a year). Higher tax bracket. Is it worth it?
Is there a benefit with getting rid of an EV early due to become redundant or poor battery life or is this lease meaning it's given up WAY too early?
No one can answer the part about the future, but it terms of being worth it in a higher tax bracket -> most likely, yes.
Copy this and fill it out, sus it out for yourself:
https://docs.google.com/spreadsheets/d/1CtpBXmuhRW3HrBjqJqnP…
Mate do it. Use the provided calculator form the reddit guy it makes all sense mor eyou earn Bette the deal also getting a amazing car. But test drive 2 to 3 times to get used to. Also add 2k for a level 2 charger at home o don't have one but trust me is time saving.
Is “level 2” charger different to the home charger Tesla sells on their website? Asking as a prospective buyer. Cheers
That $800 Tesla charger likely costs at least as much to install. Yes, it’s a “level 2” charger.
It’s the most charger almost anyone would sensibly need at home.
Can the cost of buying home charger and installation be part of the novated lease?
Here we go again. A bunch of people who know nothing about NL and EVs spouting rubbish about how it's the devil's loan or something.
So sh1t resale isn’t a reality?
It’s a lease. If the value crashes then you don’t pay out the residual - the resale value is the lease company’s problem.
If the car is valued less than the residual value at the end of the lease, you need to pay the NL company the difference. Very much your problem still.
I have a NL btw.
I'm making money selling a NL diesel at the end of lease vs EV depreciation. It's not the EVs fault though
Do you get a free MAGA hat with the purchase?
Do you get a free hammer and sickle with a BYD?
Nup still too expensive.
Is it actually a no brainer to get an EV on a lease if you're earning at least 6 figures? srs qustion
Definitely. Seriously. earning 180ish.
Best do your own research.
Having said that I'm currently in the market and will be leasing as it has its advantages.
Eg.
Current quote - if I multiply the reduction in fortnightly pay by the # of repayments and add the residual, the total is still less than the RRP of the car yet over the term of the lease I haven't paid maintenance costs (insurance, registration etc).
Thinking new Model Y for me in LR wonder if incentives or deals will carry over to that too - also dont understand it at all but pretax salary vs cash outlay in tax saving is the diff im getting as the take away
You also don’t pay GST under a NL agreement, as it is a business purchasing it rather than an end customer. A lot of the savings associated with a NL are this, and paying for running costs under pre-tax income.
I’ve posted this spreadsheet a few times, but I’ll risk upsetting the mods and do it once more. Plug in the details and check out the financial summary.
https://docs.google.com/spreadsheets/d/1CtpBXmuhRW3HrBjqJqnP…
Typically, the NL makes sense, especially for EVs until the FTB exemption is discontinued.
Yes, no GST on purchases, no GST on lease payments and operating expenses, but there will be GST on the final residual (balloon) payment.
To go with novated lease it's important to understand the interest rate for the lease.
if you have two options 1) get a NL - get $3500 rebate in WA (may be additional $3500 NL incentive as per this post), no GST on purchases and tax savings as a pre tax money.
or 2) claim it under ABN as a business car? - benefit Asset Write-Off. Not aware of other benefits.
which option is better / cheaper?
Depends on your marginal tax rate, but my guess is NL as you would need to maintain records as to what the vehicle is being used for if it was a business vehicle i.e Business v Personal, and the personal use is a declarable fringe benefit.
The flip side is that your accountant could depreciate the vehicle to reduce your profits, so you might find that over the long haul it could be better as a business vehicle.
If you have an accountant, I would suggest asking them to run the numbers for you with an understanding of your personal and business tax situations.
It is legit raining EV deals
they cut the prices already by 4k of old model
need it for new model Y
Shame my employer doesn’t do NL so I wouldn’t be able to get this deal
Do you have any sway over that stance? Great way to retain staff.
Nah it’s corporate policy we just aren’t setup for it here in Australia (American company)
Righto - hope they are paying you in USD at the moment, that would be better than a lease 😉
I've wondered - If I'm contracting now and my agency offers NL options via one company, what happens if I change jobs or get a permanent role and that company uses a different NL provider? Does the provider not matter as long as the new company offers the NL salary packaging?
New provider might offer a different interest rate/other charges though so it might change the calculation a bit.
Keep waiting the prices will keep dropping
This discount is offered via Smart Leasing, not Tesla. Smart Leasing offered a similar discount back in Oct too from memory.
The previous $3,000 offer back in December was by Tesla (https://www.ozbargain.com.au/node/874298/comments). This offer is currently being advertised by Smart Leasing, but is definitely offered by Tesla. Likely not on their website until tomorrow when the offer begins. Its in the T&C on the Smart Leasing site ("*The offer set out in this campaign is provided by Tesla Motors Australia,…")
Is this for all lease providers or just Smart? My employer uses a different lease provider, anything I can do?
Not clear currently, I think likely all, however likely more clear tomorrow when the incentive is live.
if you have two options 1) get a NL - get $3500 rebate in WA (may be additional $3500 NL incentive as per this post), no GST on purchases and tax savings as a pre tax money.
or 2) claim it under ABN as a business car? - benefit Asset Write-Off. Not aware of other benefits.
which option is better / cheaper?
novated Lease big plus, however not for EV..
Wot?
On Tesla’s website for Model Y, they have a Novated Lease estimator, if I use a value of $180,000 income over 60 months. It mentions the payments $678 /mo est.
Does this figure mean I will be saving $678 in tax per month with a NL? Apologies if this is a dumb question, have never really learnt about NL before.
If so, does this mean a saving of $40,680 on a $69k car?? I feel like I am calculating the wrong thing here. Thanks if anyone could help.
It means that they estimate you'll be paying $678 per month 'post-tax'. The estimated monthly payments are calculated by your tax bracket i.e. the higher tax bracket you are, the more worthwhile a novated lease becomes
I see, so the rest of the car payment will be money that was going to the taxman anyways? Do you know if this $678 proposed figure is including the lease interest rate as well? Thanks so much!
I used Toyota's Novated Lease benefit calculator to determine if it was suitable for me, when I got my Mazda back in 2021. Of course, that was a different time with pricing all over the place, thanks to supply-demand mechanics. YMMV, but you can ususally find a sweet spot re the lease tenure to maximize benefits.