Buying two EV cars on Novated lease wit FBT exemption

(Newbie)Newbie

27 May 2025

Hi,

Thank you for taking the time to read and respond to my questions.

We’re looking to purchase a second electric vehicle through a novated lease using my wife’s salary as I am not eligible for novated lease. We understand that this is allowed, but we have two questions that are still unclear:

Question 1:

Does the Fringe Benefits Tax (FBT) exemption apply only if the combined value of both EV vehicles is under the Luxury Car Tax (LCT) threshold of $91,387, or is the threshold applied individually to each vehicle?

Question 2:

What happens if my wife changes employers? Can the novated leases be transferred to the new employer under the same conditions as long as new employe provides novated lease option for employee?

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KaraATO

(Community Support)Community Support

29 May 2025

Hi @MEDIANOVA,

No problem! Let's see if I can get you pointed in the right direction 💁‍♀️

The Fringe Benefits Tax (FBT) exemption applies to each individual electric car, not total value of multiple vehicles. So, as long as each EV remains under the Luxury Car Tax (LCT) threshold (currently $91,387 for fuel-efficient vehicles), it qualifies for the exemption. If the EV exceeds the limit, it won't be eligible for the FBT exemption.

You're spot on, if your wife switches employers, the novated lease can be transferred to the new employer, as long as they offer it.

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Buying two EV cars on Novated lease wit FBT exemption

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