Up-front GST saving of $6,191 on your IONIQ 5
Pay $0 GST on your running costs (including charging)
Fringe benefits tax exemption on eligible variants
Shopping around for the right novated lease can save you thousands of dollars in interest and fees.
In our Hyundai IONIQ 5 novated lease guide:
One of several EVs in Hyundai’s expanding range, the IONIQ 5 is fast establishing itself as a favourite among Aussie EV drivers. It made the list of the top 10 best selling EVs for 2022, behind models like the Tesla’s Model 3 and Model Y, as well as BYD’s Atto 3.
But with a badge on the bonnet that Aussie drivers are very familiar with, Hyundai’s IONIQ 5 could make an ideal first EV for drivers looking to make the transition.
Its standard pricing is not cheap, but thanks to the fringe benefits tax exemption on EV novated leases, the actual cost is significantly reduced for eligible drivers.
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Hyundai Ioniq 5 (Dynamiq)
Hyundai Ioniq 5 (Techniq)
With a novated lease on a Hyundai IONIQ 5, you can pay for the car and car-running expenses using your pre-tax salary.
With each pay cycle, your employer deducts the novated lease payment from your salary before tax is deducted. This is known as salary sacrificing a car and means you pay less income tax.
A novated lease company helps with establishing the lease and creating the budget for your car running costs.
The car running costs you can include in your Hyundai IONIQ 5 novated lease include:
Some related expenses, like the cost of installing a home battery or fast charger for your IONIQ 5, can’t be included.
The IONIQ 5 Dynamiq and Techniq variants are eligible for the novated lease fringe benefits tax (FBT) exemption for low emission vehicles.
This is because the purchase price of these variants is below the luxury car tax threshold.
It means that in addition to the standard tax savings available with all novated leases in Australia, it’s possible to save thousands more on a Hyundai IONIQ 5.
In most cases, this makes a novated lease considerably cheaper than other Hyundai finance options like a car loan, or even buying the car outright with cash.
You can also compare novated lease deals on other vehicle makes and models.
To apply for a novated lease on a Hyundai IONIQ 5 you’ll first need to check if your employer offers novated leasing as a benefit. If they do, you can get a quote for a novated lease from a leasing provider. The provider can often also help you find a car to buy, if you haven’t found one already.
The lease provider will then help you submit your finance application and, if you’re approved (based on a credit score check and other assessments by the lender), they will arrange with your employer for the lease payments to be deducted from your salary.
The residual payment on your Hyundai IONIQ 5 novated lease will depend on the purchase price of the vehicle and the length of your lease. As an example, the residual payment on a Hyundai IONIQ 5 Dynamiq with a 5-year novated lease (purchase price: $75,549) would be $21,246.53 (inclusive of GST) or 28.13% of the purchase price. This is based on the minimum residual value rates set by the ATO.
Remember you’ll need to use after-tax money to make the residual payment on your Hyundai IONIQ 5 novated lease.
The residual on a novated lease is one of the factors to weigh up when deciding if a novated lease is worth is for you. It can come as a shock when the payment is due, but it does mean the regular payments on your Hyundai IONIQ 5 novated lease will be lower during the lease term.
Remember, you'll also have the option to extend your term when your current novated lease ends. If you do this, you do not need to pay the residual amount when the initial lease ends.
Novated lease guides and resources
Find out more about the possible savings, benefits and things to watch out for, plus your range of options with a novated lease in Australia.