ELECTRIC VEHICLE NOVATED LEASE MODEL 3 AUSTRALIA CASE STUDY FBT EXEMPT

EV Channels Review

This video presents a detailed case study of purchasing a 2022 Tesla Model 3 Rear-Wheel Drive in Australia via a novated lease, highlighting the benefits of the FBT exemption for electric vehicles. The presenter, Tom from Ludicrous Feed, walks through the Australian Tax Office's guidelines for the exemption, emphasizing eligibility criteria such as the vehicle being a zero or low-emissions vehicle, first used after July 1, 2022, and below the Luxury Car Tax threshold. The core of the video is a real-world financial breakdown provided by a viewer, Chris, illustrating significant savings compared to an outright cash purchase. Key advantages include the pre-tax nature of lease payments, effectively reducing the cost by the individual's marginal tax rate, and the exemption of associated running costs like registration, insurance, and maintenance from FBT. The video also touches upon potential downsides, including the need for job security, the reporting of fringe benefits on income statements (though not taxed), and the residual value at the end of the lease. The presenter concludes that the novated lease, when combined with the FBT exemption, offers substantial savings, estimated at over $17,000 for the specific Model 3 case study over three years, making it a financially attractive option for eligible EV buyers in Australia.