Why Forward-Thinking Companies Provide a Tesla novated lease as an Incentive

Key Highlights

Here's a quick look at what makes a Tesla novated lease a smart choice:

• A novated lease allows you to pay for a new or used Tesla and its running costs from your pre-tax salary.
• Eligible electric vehicle (EV) models are exempt from Fringe Benefits Tax (FBT) in Australia, offering massive savings.
• You save on the Goods and Services Tax (GST) on the vehicle's purchase price and ongoing running costs.
• Employers can attract top talent by offering this innovative, future-focused benefit.
• It simplifies car ownership by bundling all your expenses into one regular payment.

Introduction

Are you thinking about a Tesla but feel it’s too expensive? There is a way that can help. A novated lease can be a good option to get you into an electric vehicle like a Tesla. This type of lease lets you put both the cost of the car and its running costs together. You pay these costs in single, regular payments. They come straight out of your pre-tax salary. More people in Australia now use a novated lease, and it can give you big tax savings. You can use this way to get the car you want and save money.

Why Forward-Thinking Companies Provide a Tesla Novated Lease as an Incentive

More and more companies in Australia are starting to see the value of offering a Tesla as part of their employee benefits. Doing a novated lease for an electric vehicle is not just a nice extra. It is a smart move that helps make your company look modern and caring about the future.

This approach brings clear good things for both your business and your team. A novated lease can help attract top people, show your support for green ideas, and make your company look good. Let’s talk about how this novated lease benefit helps your business stand out, keeps up with green goals, and builds your brand in Australia.

1. Attracting and Retaining Top Talent with Innovative Benefits

In today's job market, it is not enough to give a standard pay package if you want to bring in and keep the best people. Companies that offer something different, like a Tesla novated lease, stand out. This kind of benefit shows the employer is up-to-date, cares about the financial well-being of the people who work there, and is ready to spend on good rewards.

Having this great benefit can help someone choose your company when they are deciding between job offers. It can help bring in new people and keep them, too. This is because it makes your workplace seem like a better place to be. It also proves that you want to give benefits that really help make the lives of your team better.

The key advantages for talent attraction include:

• Making your company different from others because you offer a high-quality, wanted benefit.
• Getting attention from top people who like new technology and care about the world for the next year and beyond.
• Helping your employees feel happy and loyal helps more people stay each year.

Giving a novated lease, like a Tesla lease, can help your company get and keep the people you need to grow.

2. Supporting Employee Sustainability Goals and Green Commuting

Many employees today care about sustainability and want to lower their impact on the environment. When your company offers a novated lease on a Tesla model, you show that you support these values. You help your team make the switch to an electric vehicle. This makes green commuting easier and more affordable for them.

This choice lines up your company values with what your workers care about. It helps build a strong company culture that is based on the things everyone believes in. At the same time, it shows you are really working toward a greener future, and not only inside the office.

Giving your employees a chance to use an electric vehicle like a Tesla through a novated lease offers many benefits:

• It gets more people driving zero-emission vehicles.
• It helps lower the carbon footprint of their daily commutes.
• It lets your team take advantage of government offers like Fringe Benefits Tax exemption, making it cheaper and easier to make a good choice for the planet.

3. Leveraging Tax Advantages for Both Companies and Employees

One of the main reasons to choose a Tesla novated lease is the big tax benefits you get. If you have this lease, your payments come out of your pay before tax is taken out. This lowers your taxable income. You pay less income tax and take home more money, and you also get to drive a new car.

A special rule called the fringe benefits tax exemption makes this deal even better for those with electric cars that qualify. If your EV gets the FBT exemption, you and your boss do not have to pay fringe benefits tax. This can save both of you many dollars over the time of the lease.

There are more savings too. Employees do not pay GST on the up-front price of the car or on most running costs. This includes things like charging, insurance, and looking after the car. All together, these tax breaks make a novated lease a smart move for everyone.

4. Enhancing Company Reputation as a Forward-Thinking Employer

A company's reputation is one of the most important things it can have. Offering a Tesla novated lease sends a strong message to the market. It shows that your group is modern, looking to the future, and cares about its employees. It lets people know that you keep up with new technology and care about the environment.

This move makes your company look better as an employer and helps your brand be seen in a good way. It tells people who might want to work with you, clients, and partners that you are smart and spend money on the team and the planet. When you have a novated lease for a Tesla, it can help more high-quality people get interested in your company. The wider community may also see your group in a good way.

Being known as a place that offers access to top technology like a Tesla makes people see your company as up-to-date and successful. It shows that you are not just keeping up, but leading the way in making a great place to work by using a novated lease.

5. Providing Cost-Effective Salary Packaging Options

A novated lease is a way you can use your pay to get a car. It helps you save money and makes it easier to manage your spending. With a novated lease, you do not buy the car with all the money at once, and you do not get a normal loan. Instead, you get tax savings, so you keep more of your pay. All running costs for your car are put into one payment, making it simple to plan for every month.

If you use a novated lease calculator, you can see right away how much your take-home pay will be. This helps you know if this lease is affordable for you. It often lets people get a nicer car than they could buy in another way, as the tax help and end value of the car make payments lower.

Key things that help you save money with a novated lease include:

• Saving a lot on income tax and GST.
• Running costs, like insurance, registration, and tyres, are all together in one payment for ease.
• You might also get fleet discounts on the car when you buy it.

Using a novated lease is a good way to handle car payments, running costs, and save money in the long run.

Financial and Tax Benefits of Tesla Novated Leases

The financial case to get a Tesla with a novated lease is very strong. This is because there are many tax benefits set up to help people get electric vehicles. One of the biggest is that there is a Fringe Benefits Tax (FBT) exemption for cars that cost less than the luxury car tax threshold. This can save you thousands of dollars every year.

A novated lease will lower your taxable income. You also do not have to pay GST on the price and the running costs, so the total cost to have the car goes down a lot. Now, let's look at the FBT exemption more closely and see how the cost compares to just buying a car outright.

Understanding Fringe Benefits Tax Exemptions for EVs

In Australia, the federal government now has a new Fringe Benefits Tax (FBT) exemption just for electric vehicles. This is a big step for novated leasing. If you pick an electric vehicle that costs less than the luxury car tax threshold ($91,387 for the 2024/25 year), it can be free from FBT.

What does this give you? FBT is a tax that most employers pay if they give you things other than your pay. In a normal novated lease for cars that are not electric vehicles, your FBT is handled by mixing pre-tax and post-tax payments.

But with this new FBT exemption, you can pay for all of your electric vehicle’s costs from your pre-tax pay. There is no FBT you need to worry about. You save the most on your income tax, and it makes it much easier to get a new electric vehicle. This is the best time yet for people in Australia to try novated leasing for an electric vehicle.

Comparing Cost Savings: Novated Lease vs Outright Purchase

When you compare the numbers, the cost savings of a novated lease become clear. While an outright purchase avoids interest payments, it requires a large upfront capital outlay and forgoes the substantial tax benefits offered by a novated lease. A novated lease can often work out to be considerably cheaper over the term of the agreement.

The savings come from multiple sources: the GST discount on the purchase price, the reduction in your taxable income, and the GST savings on all your running costs. For an eligible Tesla model, the FBT exemption further amplifies these financial advantages, making it a superior option for many people.

How Tesla Novated Leases Work in Practice

So, how does a novated lease work if you want to get a Tesla? It is a set-up between you, your employer, and a novated leasing provider. Your employer takes money for the lease from your pay. The leasing provider sorts out the money and handles everything for the car.

The process aims to be easy for you. Here, you can see what you need to be able to get a Tesla through a novated lease. Plus, we show the steps to follow so you can get started today.

Eligibility and Available Tesla Models for Novated Leasing

If you work in Australia and get a salary, then you may be able to use a novated lease if your employer offers novated leasing. This is true for people working for private companies and also those in government jobs. The main thing you need is for your employer to agree and help set up the salary sacrifice arrangement.

You can pick from many Tesla models when you get a novated lease. Some popular choices are the Tesla Model 3 and Model Y. You can lease both a new Tesla and a used one. But there may be some limits on how old a used car can be at the end of your lease.

Most Tesla models are available for novated leasing. But you have to keep the luxury car tax threshold in mind to get the FBT exemption. If you want to save the most money, it’s best to choose a Tesla model and setup that stays under this price cap. This way, you get the best deal with your novated lease in Australia.

The Process of Applying for a Tesla Novated Lease in Australia

Applying for a Tesla novated lease in Australia is easy and simple. The leasing provider will help you at every step of the process. They handle most of the paperwork for you, so the whole thing is smooth and does not cause any trouble.

When you pick your Tesla model, this is what usually happens: First, you get a quote so you can see the costs and possible savings. Then you go for a finance pre-approval. Getting pre-approval does not tie you in to anything, but it helps you when you are ready to buy a car from a dealer.

The usual steps in a novated lease application are:

• Get a Quote: You can use a novated lease calculator or talk to a consultant to get a clear quote. It is based on your chosen Tesla model, your pay, and how many kilometres you plan to drive in a year.
• Obtain Pre-approval: Give your details to get a finance pre-approval. It is often easier to get than a normal car loan because payments come out of your pay before tax.
• Finalise the Paperwork: When you find your car, the leasing provider will get the lease agreement ready. You and your boss sign it. After that, you can pick up your new Tesla.

Conclusion

To sum up, forward-thinking companies see the value of offering a Tesla novated lease as a great way to attract employees. This kind of benefit can help a business get and keep good people. It also matches up with the company’s drive to be more green and helps the company look good in the market. By using the money and tax perks of an electric car like a Tesla, companies can make a smart and cost-effective option for salary packaging. This setup works well for both the employer and the employee. As more people want good options for greener travel, giving these lease incentives can help a company stand out in its field. If you want to know how a Tesla novated lease or a novated lease can help your business, get in touch and find out more!

Frequently Asked Questions

Can I include Tesla charging solutions or accessories in my novated lease?

Yes, you can often add approved accessories and charging kits, like a home wall connector, into your novated lease. This lets you pay for these items with your lease, and you get the same GST savings with the package.

Are there differences in Tesla novated leasing across Australian states?

While the main federal tax benefits, such as the FBT exemption, are the same throughout Australia, some states may have their own extra incentives for electric vehicles. But the main process for setting up a Tesla novated lease is mostly the same in every state. It does not matter where you live in Australia; the way you arrange a novated lease stays steady.