NOVATED LEASE BASICS: THE ECO CAR LCT THRESHOLD EXPLAINED IN FULL

EV Channels Review

This video provides a crucial breakdown of the Australian Federal Government's FBT exemption for Electric Vehicles (EVs) and plug-in hybrids, specifically focusing on the $84,916 Luxury Car Tax (LCT) threshold for the 2022-23 financial year. John Cadogan emphasizes the critical importance of staying under this threshold, as even one dollar over disqualifies the vehicle from the tax concessions. The review meticulously details what components are included in the price calculation for the threshold – GST, customs duty, dealer delivery, statutory warranties, accessories like tow bars, modifications (excluding disability-related ones), paint protection, and window tinting. Conversely, it clarifies what is excluded: other Australian taxes (stamp duty, registration, CTP), extended warranties, financing costs, and service plans. Real-world examples using the Hyundai Ioniq 5 and Ioniq 6 Technic trims illustrate how easily one can exceed the threshold with added accessories and treatments, despite the base car appearing close to or under the limit when statutory charges are removed. Cadogan strongly advises viewers to "measure twice and cut once" and consult with a qualified financial advisor before committing, to avoid losing tens of thousands of dollars in potential savings.