EV Road User Charges and Novated Leasing Tax Strategies

Summary

As government subsidies taper and distance-based road user charges or annual odometer reporting are considered for electric vehicles, total running costs require re-evaluation. For landlords driving high annual mileage, pairing EVs with rooftop solar systems significantly reduces charging expenses. Furthermore, utilizing a Novated Lease allows vehicle running costs and potential distance levies to be paid from pre-tax income, mitigating the financial impact.

Key Points

Why it matters: Proposed distance-based road user charges for electric vehicles alter total ownership economics, highlighting salary packaging as an effective tax-mitigation tool for landlords.

As government subsidies taper and distance-based road user charges or annual odometer reporting are considered for electric vehicles, total running costs require re-evaluation. For landlords driving high annual mileage, pairing EVs with rooftop solar systems significantly reduces charging expenses. Furthermore, utilizing a Novated Lease allows vehicle running costs and potential distance levies to be paid from pre-tax income, mitigating the financial impact.

Practical Takeaway

Use this note as a practical prompt before making decisions. Check the rules in your state, keep written records, and seek qualified advice where needed.