The EV (electric vehicle) revolution just got a whole lot easier, thanks to the ATO (Australian Taxation Office).
As of July 1 2023, the Luxury Car Tax (LCT) threshold increased for fuel-efficient vehicles. LCT is a tax of 33 per cent paid on every dollar above the threshold on the retail price of imported vehicles.
The threshold has now been raised for the 2022/23 financial year from $84,916 to $89,332 for fuel-efficient vehicles, including EVs and plug-in hybrids.
Increasing the LCT threshold by $4416 might not seem like a lot compared to the price tag on many EVs, but this change is great news for anyone looking to take advantage of the Federal Government’s EV discount.
LCT, FBT and novated leases
In 2022, Parliament introduced the Federal Government EV discount. This discount removed any Fringe Benefits Tax (FBT) payable on electric vehicles that have a retail value under the LCT threshold. The only way for individual drivers to access the EV discount is through a novated lease.
Now that the LCT threshold has increased for the 2022/23 financial year, more EVs have become eligible for the discount. If you’ve been eyeing off an EV in the $80,000–90,000 range (below $89,332), you’ll be glad you waited until now as you may be able to maximise your savings.
The threshold change also means there’s the opportunity to make more modifications to vehicles while keeping the total cost below the LCT threshold.
Read about the existing eligible EVs in Maxxia’s other article here.
Speak to novated lease EV experts
As one of Australia’s largest novated leasing providers, Maxxia is leading the charge when it comes to electric vehicles on novated lease. The company has partnered with electric vehicle suppliers to deliver EV expertise and to assist you with sourcing your dream EV at a potentially great price.
Contact Maxxia today to join the rEVolution or view Maxxia’s car offers to learn more.