You may have heard about the Luxury Car Tax (LCT), as a tax of 33% paid on every dollar above the threshold on the retail price of imported vehicles.

The threshold has now been raised for the 2024/25 financial year from $89,332 to $91,387 for fuel-efficient vehicles, including EVs and plug-in hybrids.

With the price of EVs continually coming down, this LCT increase could mean more choice – and savings! – for people looking to take advantage of the Australian Government’s EV Discount and switching to electric.

LCT, FBT and Novated Leases

In 2022, Parliament introduced the Federal Government EV Discount. This discount removed any Fringe Benefits Tax (FBT) payable on electric vehicles that have a retail value under the LCT threshold. The only way for individual drivers to access the EV discount is through a novated lease.

Now that the LCT threshold has increased for the 2024/25 financial year, more EVs have become eligible for the discount. If you’ve been eyeing off an EV in the $80-90k range (below $91,387), you’ll be glad you waited until now as you may be able to maximise your savings.

The threshold change also means there’s the opportunity to make more modifications to vehicles while keeping the total cost below the LCT threshold.

Read about the existing eligible EVs in this handy article.

Speak to the Novated Lease EV Experts

As one of Australia’s leading novated leasing providers, Maxxia is leading the charge when it comes to electric vehicles on novated lease. We’ve partnered with electric vehicle suppliers to deliver EV expertise and to assist you with sourcing your dream EV at a potentially great price.

Contact us today to join the rEVolution!