Canna Campbell

So in Australia, many EVs that are on a notavated lease are FBT free.

So fringe benefits tax is not charged when you take a notavated lease on an EV.

And this can significantly reduce the cost.

because you're not having to pay fringe benefits tax, which is huge.

Also, you know, you've got obviously the lower running costs, no petrol, less maintenance.

There's obviously, again, not everyone agrees with this, the environmental appeal.

And, you know, it looks like, you know, you are being very responsible and respectful to the planet.

And, you know, I've never seen so many smug EV vehicle drivers.

Like even one of my girlfriends said, I've never been prouder of the fact I bought a Tesla four years ago.

Tax incentives definitely can make something look a lot more attractive, but they don't necessarily make it the best option for you.

Yeah.

I'm probably not too, like, I would be the same.

I think I worked between 12,000 to 15,000 a year.

Well, the most important thing to know and understand with this novated lease is you've got to have stable employment, you know, salaried obviously to make the repayments.

But if you leave your employer or you're made redundant, this then potentially terminates the novated lease, which means you lose the tax benefits and you've also got to pay out.

So, if you don't have money set aside for that payout, you could put yourself under serious pressure.

So, if you're going to do something like this, you've got to know you're going to be staying put with that particular employer for quite some time.

Then, of course, and this is the bit of the, I guess, the...

I wouldn't say polarizing, but the controversial issue with these tax incentives is that a lot of people argue that these tax incentives are only for people on the top marginal tax rate because they're the ones that benefit the most from being fringe benefits tax-free.

So you could say, well, they're the ones that will benefit first and foremost.