Understanding the EV Discount for Employers

This guide explains the EV Discount, which was introduced in Australia on 1 July 2022, to help employees save money when leasing electric vehicles (EVs). The EV Discount allows eligible employees to benefit from significant savings compared to leasing petrol cars, as it is fringe benefits tax (FBT) exempt, meaning all payments can be made from pre-tax salaries. The document outlines the benefits of novated leases for employees, including lower running costs and potential tax savings. Additionally, it discusses how the EV Discount is relevant to HR departments and employers, especially in supporting financial wellbeing and demonstrating a commitment to sustainability. It also lists the types of vehicles eligible for the EV Discount and compares the costs of EVs versus petrol vehicles, emphasizing the lower operating costs of EVs. Furthermore, the document addresses common considerations for employees when transitioning to EVs and includes practical advice on making informed decisions regarding vehicle sourcing and budgeting.