Tax Office announces thousands in new car-buying bonuses from July 1
The ATO might not be everyone’s favourite government entity, but if you’re in the market for an EV or plug-in hybrid, there are new bonuses available to you in the next financial year. Here’s what they mean for you…
That beloved institution the Australian Tax Office has announced new thresholds for Luxury Car Tax, zero Fringe Benefits Tax on EVs and plug-in hybrids, and the maximum amounts of GST and depreciation you can claim on a new car in the next financial year.
This represents a $4400 free kick in the case of EVs, and $3400 in the case of depreciation. All up, that's $7800 worth of total compelling reasons to delay that critical acquisition until July 1st or thereafter - especially if that PHEV or EV you want is jammed hard up against the current tax ceiling.
This report is sponsored by Novated Lease Australia.
Novated leasing is insanely popular right now owing to new tax incentives on EVs and many people are crossing the novated leasing bridge for the very first time. If you’re a complete novated lease novice, that’s perfectly okay. Here is my dedicated novated lease guide for first-timers >>
In general, novated leasing is the cheapest way for many ordinary Aussies on a salary to own an EV or a plug-in hybrid, mainly thanks to the federal government’s new financial incentives, including zero FBT on those notionally ‘green’ cars. Obviously you can novate conventional combustion vehicles as well.
Watch the full video report to get the in-depth analysis of what’s changed and how you can benefit from those changes.
The concept of novated leasing is easy.
You make the payments using your pre-tax salary. You sidestep a big wedge of GST, you don't pay the fringe benefits tax on the green cars and you reduce your taxable income.
The details do get fairly complex pretty quickly however, and there's also a level of compliance that you need to be mindful of. It all hinges on things such as the car you want; is it green enough; what does it cost; how much do you earn; how many annual kilomtres are you going to drive; what state do you live in - and the specific details of your financial circumstances. So there's rather a lot of variables in the mix.
Novated Lease Australia is run by dudes I've known for years whom I trust, dudes who will turn complexity into clarity for you, and will tell you where you actually stand with a novated lease.
And obviously your inquiry is entirely obligation free.
If you want to go into details on the changes to the Tax Office thresholds in order to further your research before novated leasing an EV or PHEV, watch the full report above.
IMPORTANT: There has been a recent update to the FBT exemption threshold: Major change to EV & PHEV tax cuts coming June 30 >>
Or if you’re ready to enquire about that new electric vehicle you’ve been desperately waiting for, either check out my extensive list of EVERY EV and PHEV eligible for FBT exemption >>, or take a shortcut and review my Ultimate EV-PHEV Buyer’s Guide >> to streamline the process.
If you’re thinking of taking advantage of these ‘green car’ incentives, if you want to know more about a specific EV or PHEV, or you just have a question about any of the above reports, fill in the form below.
ENQUIRE HERE
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