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"Fuel" Cost for Novated Leasing

Posted: Mon, 09 Jul 2018, 16:20
by jpleaner
Hi All,

I am looking into the prospect of purchasing a Tesla through novated lease. Does anyone know what the situation is with respect to operating expenses and "fuel". Most novated lease companies list the fuel cost a zero. However, there is obviously a cost. How can this be calculated for tax purposes in the lease? I had read somewhere that the standard 66c/km method can be used for EVs for tax deductions. Does this apply in this case too?

Just wondering if anyone who has an EV lease might be able to provide some advice.

Thanks

Jason

Re: "Fuel" Cost for Novated Leaving

Posted: Wed, 11 Jul 2018, 13:10
by T1 Terry
Good question for a first post Jason, I hope you get an answer soon so I'll know as well. Often wondered about tax fuel cost claims when it comes to EV use, we have a 2008 Prius that is hybrid drive and I'd like to upgrade it to plug in electric and as it is a business use vehicle the full costs should be tax deductable, but fuel claims for tax time?

T1 Terry

Re: "Fuel" Cost for Novated Leasing

Posted: Wed, 11 Jul 2018, 13:37
by jpleaner
Hi Terry,

I actually spoke to my accountant at work about novated leasing and was advised that because the car is over the $58k threshold, it is not tax effective for the employer to engage in a novated lease arrangement and they won't allow it. So that simplified things!

Outside of a novated lease situation, with regards to fuel claims that is actually a simpler answer. If I use my EV for work purposes, I simply keep a log book like any other car and the ATO has granted EV owners the ability to claim millage expenses at the same rate as ICE cars(66c/km). At lease we can get SOME concessions for EV ownership that way! See this article below:

https://reneweconomy.com.au/tax-office- ... lia-18434/

Cheers

Jason

Re: "Fuel" Cost for Novated Leasing

Posted: Wed, 11 Jul 2018, 13:46
by woody
jpleaner wrote:
Wed, 11 Jul 2018, 13:37
because the car is over the $58k threshold, it is not tax effective for the employer to engage in a novated lease arrangement
Hopefully Model 3 or new Leaf will be under that threshold?

Can you get a novated lease on a second hand Tesla?

Re: "Fuel" Cost for Novated Leasing

Posted: Wed, 11 Jul 2018, 17:00
by jpleaner
You can technically get a novated lease on any car, new or used. But at that $58k threshold it loses its tax appeal for employers so generally they don't do it. Also, now days the fringe benefits tax that goes with a NL also makes them less worthwhile. I will probably just do a simple lease on mine when it arrives.

I think a standard range Model 3 will come in under $58k but am targeting the long range. I drove one on a trip to Los Angeles recently. Probably a bad idea... Its made the wait that much harder!

Re: "Fuel" Cost for Novated Leasing

Posted: Mon, 16 Jul 2018, 10:56
by Chuq
My Leaf is on a novated lease - I simply didn't include fuel (electricity) in the lease items. It varies between provider, but you can generally include whatever items you want (e.g. if you have your own insurance bundled with your house etc. you can continue to do that separately). In my case it wasn't worth getting a seperate meter or charging unit for the outlet that my car is plugged in to.

My lease provider got bought out by another company a few months ago, they very kindly sent me BP and Shell fuel cards. With my name and vehicle make/model embossed on them. :)