The National Automotive Leasing and Salary Packaging Association (NALSPA) is issuing a final call for Australian workers to secure a plug-in hybrid electric vehicle (PHEV) before a major tax discount vanishes.
The Fringe Benefits Tax (FBT) exemption for PHEVs comes to an end on April 1 - a discount that can save motorists thousands of dollars on the cost of owning and running a new low emissions car.
As the deadline nears, figures from the Federal Chamber of Automotive Industries released today show PHEV sales for January 2025 are 88.5% higher than a year ago.
NALSPA chief executive Rohan Martin said the FBT exemption has played a major role in boosting PHEV sales in Australia, and has helped ordinary everyday working Australians to save on their car running costs and importantly reduce emissions.
He said with just about eight weeks to go until the April 1 deadline, Australians need to act quickly to make sure they don’t miss out on the exemption.
“Act today if you want to save thousands of dollars on the cost of a plug-in hybrid electric vehicle,” Mr Martin said.
"The countdown is on - the deadline is less than eight weeks away, and to qualify for the exemption, you must have a financial commitment in place and take delivery of your PHEV before April 1. On top of this we know demand for PHEVs is high and some models won’t be delivered in time. So time is ticking.
"The FBT exemption is making BEVs and PHEVs more affordable for everyday working Australians. Through a novated lease, the exemption typically saves employees around $5,000 annually on an EV. The exemption means a $50,000 EV could cost the same or even less to lease over say four years than a $30,000 petrol car.
“The cost-of-living is hitting households hard, so finding ways to save on big purchases like a new vehicle is really important. While we’re encouraging motorists to take full advantage of the FBT exemption for PHEVs while it lasts, there are still other ways to save when buying a new car.
"After April 1, workers who want a PHEV can still benefit from a novated lease where they can acquire a new car using their pre-tax salary. A novated lease reduces your income tax and removes GST on the car’s purchase price and on running costs, like fuel and servicing. This can lead to significant savings, potentially amounting to thousands of dollars annually compared to purchasing a car outright or financing it with a loan.
"Additionally, the FBT exemption for fully electric vehicles will remain in place until at least 2027, providing even greater savings for those looking to fully transition to electric driving."
Top 10 PHEVs via novated leasing:
- Mitsubishi Outlander
- BYD Sealion 6
- Mitsubishi Eclipse Cross
- Mazda CX-60
- MG HS
- Volvo XC60
- Cupra Formentor
- Kia Sorento
- Alfa Romeo Tonale
- Cupra Leon
Media contact: Sofie Wainwright 0403 920 301