The list above is based on vehicles with an estimated cost below the luxury car tax threshold, as at December 2023. On-road costs, such as dealer delivery, standard and statutory warranties, accessories, modifications and treatments to the car before it's delivered may impact the cost for the purpose of working out luxury car tax, according to the ATO.
To be eligible for the fringe benefits tax (FBT) exemption on an electric car novated lease, the vehicle you are leasing must be:
If you’re considering a novated lease on a used car, to be eligible for the FBT exemption you may want to consider these specific aspects of the above criteria:
Your Novated Lease Australia consultant can help you understand which new electric vehicles and PHEVs in Australia are valued below the LCT threshold and are therefore exempt from FBT. The dealer selling the car should also be able to advise you on this.
However, as a general guide, the ATO explains that to be below the LCT threshold, the vehicle’s retail price must be below $89,332 (for the 2023/24 financial year). That is the price of the car, including:
The LCT value of the vehicle does not include:
The following vehicle types will not be eligible for an FBT exemption, even if they are electric. These kinds of vehicles are not eligible to be paid for through a novated lease more broadly, even if you factor out the FBT exemption.
In addition, mild hybrids (i.e. cars with an electric motor but that do not require charging such as a Toyota RAV4 or Mazda CX-90) are not counted as low-emission vehicles for the FBT exemption. You can, however, still salary sacrifice this kind of vehicle – if just won’t be exempt from FBT.