Novated lease benefits
GST saving on vehicle purchase price (up to $6,334)
Pay for car and running costs with pre-tax salary
A novated lease company does all the set up for you
EV novated leases are exempt from FBT
Novated lease pricing on popular Tesla models
Tesla Model 3 (RWD)
- Estimated drive-away price: $64,201
- Up-front GST saving: $5,736
- Weekly novated lease cost: $209.23
- Total tax saving during lease: $37,188
Tesla Model 3 (Long Range)
- Estimated drive-away price: $77,201
- Up-front GST saving: $6,191
- Weekly novated lease cost: $241.17
- Total tax saving during lease: $42,879
Tesla Model 3 (Performance)
- Estimated drive-away price: $93,821
- Up-front GST saving: $6,191
- Weekly novated lease cost: $230.71
- Total tax saving during lease: $40,893
Tesla Model Y (Long Range)
- Estimated drive-away price: $88,506
- Up-front GST saving: $6,191
- Weekly novated lease cost: $274.80
- Total tax saving during lease: $48,617
Important: Vehicle price estimates as at July 2023. Calculations assume a NSW driver with an annual pre-tax salary of $120,000 and 15,000km driven annually over a 5-year lease. Estimated vehicle running costs include charging, comprehensive car insurance, servicing, registration and tyres.
Package your running costs with a Tesla novated lease
A Tesla novated lease can be set up to include pretty much all running costs in your regular lease payment (deducted from your pre tax salary).
This can be convenient for budgeting and means you save more income tax and pay no GST on your regular car costs.
With a Tesla novated lease deal, you can package:
- Charging costs
- Your choice of car insurance
- Roadside assistance
- Registration & CTP
- Servicing
- Tyres
- Car washes
Bear in mind some related costs cannot be included, such as the cost of installing a battery or fast charger in your home.
How does a Tesla novated lease work?
If you choose to finance your Tesla with a novated lease, this is what to expect:
- The lease company purchases your choice of Tesla on your behalf and provides you with unlimited personal use of the vehicle.
- The regular lease payments for the Tesla are deducted by your employer from your pre-tax salary each pay cycle (including car running costs).
- You can choose a Tesla novated lease term between 1-5 years with fixed payments during the term.
- When the novated lease term ends, you can own your Tesla outright by paying the residual value, then sell it and upgrade to a newer model with a new novated lease if you want. You can also choose to extend your existing lease for a new term.
FBT exemption on eligible Tesla novated leases
For Tesla's Model 3 and Model Y variants valued below the luxury car threshold ($91,387 for FY 2024/25), your novated lease will be exempt from fringe benefits tax (FBT).
This is thanks to a government incentive aimed at increasing take up of low-emission vehicles in Australia. It reduces the cost of a Tesla or other eligible electric vehicle novated lease by thousands of dollars per year.
This is because 100% of the novated lease payments on your Tesla can be made using your pre-tax salary. Ordinarily some of the novated lease payments need to come from after-tax salary to offset the FBT.
Tesla models eligible for novated lease FBT exemption
Here are the models that are eligible for the FBT exemption at the time of writing:
- Tesla Model 3 (RWD)
- Tesla Model 3 (Long Range)
- Tesla Model 3 (Peformance)
- Tesla Model Y (RWD)
- Tesla Model Y (Long Range)
The example below shows the impact of the FBT discount on the overall cost of a Tesla Model 3 (RWD) through a novated lease compared to buying it with a car loan and buying the vehicle outright with cash.
Get a quick novated lease quote
See how much you could save on your car and running costs with a novated lease. Get a personalised, no-obligation quote today.
