While it’s an historical anomaly that in the early 20th century electric and hybrid cars outnumbered petrol-powered vehicles, this trend didn’t continue for the remainder of that century.

It’s safe to say, however, that things have now swung back greatly in the opposite direction and the electric vehicle – or ‘EV’ – is back.

Concerns about the environment have never been more important to people and the cost of manufacturing EVs has reduced with jumps in innovation from the likes of Mazda, Toyota, Nissan, Tesla and BYD to name a few.

At Maxxia, we’ve been offering electric and plug-in hybrid vehicles on novated leases for some time, with two early examples being the Nissan Leaf and the Mitsubishi Outlander PHEV.

Today, driven largely by the Federal Government’s Electric Car (EV) Discount which became law in 2022, there is a significant number of Maxxia customers leasing electric and plug-in hybrid vehicles.

Common electric vehicle questions:

What is the Electric Car (EV) Discount, and could it save me money? 

The EV Discount aims to make electric cars cheaper for Australians and, in turn, increase the take-up of low- and zero-emission vehicles.

Novated leases generally attract Fringe Benefits Tax (FBT) – it’s why pre- and post-tax payments are needed to minimise the impact of FBT (if any). With the EV Discount, however, a novated lease on eligible low- and zero-emission cars is FBT-exempt, up to the Luxury Car Tax (LCT) threshold of $91,387. This means no post-tax payments.

Eligible cars (up to the LCT threshold) include battery electric vehicles (BEVs) and hydrogen fuel cell electric vehicles. Plug-in hybrid vehicles (PHEVs) are also eligible, but only until 1 April 2025. However, pre-existing eligible novated lease arrangements on such vehicles can continue as FBT exempt until the end of the lease period.

Is my novated lease any different with an electric vehicle?

Yes… and no. A novated lease with an electric vehicle really only differs in the same ways that these cars differ from their petrol counterparts. The main one for pure EVs of course is fuel; you won’t have a fuel card for petrol, but you are able to claim the cost of charging up at a station.

Can I claim the cost of charging?

Your options include claiming what’s known as “the shortcut method” – 4.2 cents per kilometre for charging an electric vehicle at home – or “the tax-invoice method, in which you can be reimbursed for tax invoices from public charging stations.

It’s important to note that you cannot package the costs of a third-party charger that you purchase in addition to the vehicle itself.

Are my running costs the same as any other lease?

Fuel aside, electric vehicles still require registration, maintenance and tyres. EVs have lower running costs than their petrol or diesel counterparts since they have less moving parts – and fewer components that need servicing.

The Electric Vehicle Council of Australia reports that for some EV models, owners are estimated to save up to $400 every year in maintenance costs compared to an equivalent combustion engine vehicle.

Are there plenty of charge stations?

The amount of charging stations has exploded over recent years and there are plenty of online resources that map out where each one is. This article contains a handy map that lists the charging stations around Australia, the type of chargers – from entry-level to DC Superchargers – and leading charging infrastructure providers.

What sort of vehicles can I choose from?

There’s a huge range of electric and plug-in hybrid vehicles available to novated lease with Maxxia, for all budgets and lifestyles. To view some of the available vehicles, check out our Car Offers page (hint: look for the green ‘EV Discount Eligible’ stamp.)

What is the difference between electric vehicles and plug-in hybrids?

EVs are solely electric vehicles, meaning you plug them into a charger, and they use only available battery power to drive. Plug-in-hybrid vehicles – or PHEVs – have petrol motor and electric motor components; once the available battery power is used up, they switch to the motor.

EVs and novated leasing with Maxxia: Good for you and the environment

Novated leasing is all about the convenience of having all your budgeting and running costs taken care of by Maxxia, while also enjoying the potential tax savings that come with utilising your employee benefit. As electric vehicles become more and more popular it’s nice to know that your novated lease could also benefit the environment as well as your hip pocket!

Are you ready to take charge of your driving future with a novated lease on an electric vehicle? Your timing is good. Get in touch with us online or call us on 1300 123 123 and we’ll take you through your options.