What does the EV Discount mean exactly?
The EV Discount refers to a government initiative designed to improve the affordability of electric cars. Novated leases are required by law to have a certain amount of Fringe Benefits Tax be paid – it’s why pre-tax and post-tax payments are needed. With the EV Discount however, a novated lease on an eligible electric car is FBT exempt, meaning you don’t pay any post-tax contributions – for electric cars retailing up to the fuel efficient Luxury Car Tax threshold.