I intend to purchase a brand new full electric vehicle via a novated lease agreement by the end of October 2024. From the ATO website I saw that the electric cars exemption will end by mid-2027 unless extended by the ATO, so assuming the ATO will not extend the exemption, then my question is:
(a) If I entered into a 5-year novated lease agreement by 30 October 2024, then does this mean I/my employer will need to take into account private use for FBT from mid-2027 onward? Or will the FBT exemption still apply for the duration of the novated lease contract as long as the novated lease contract is signed prior to mid-2027?
(b) If the answer to (a) is that the FBT exemption applies for the duration of the novated lease contract as long as the novated lease contract is signed prior to mid-2027, then if I enter into a 2- year novated lease agreement by 30 October 2024 which will end on 30 October 2026, can I re-lease or extend the lease for another 5-years to October 2031 and still get the FBT exemption to October 2031?
Thank you
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