Electric Vehicles are the talk of town. The Electric Car Discount Act introduced in December 2022 has made EVs more affordable than ever for novated lease buyers. That’s because EVs priced under the EV Luxury Car Tax threshold (currently $89,332) are exempt from Fringe Benefits Tax, saving drivers thousands in tax.


However, in a survey conducted by SG Fleet, we found that there are some common questions and misconceptions out there.


Let’s filter through fact and fiction, busting seven myths along the way.



First, a note regarding EV availability

You may have seen media coverage of automaker supply-chain challenges over the past few years.

Coupled with increased EV demand, you’d be forgiven for thinking ownership could be a way down the line.

And while that may be true in some cases, there’s also some good news! SG Fleet Group is working closely with manufacturers to bring you the latest on stock levels.

At the time of writing, the following models have little to no wait time:

• MG – ZS EV and HS+ EV Each month, we receive an allocation of these popular and affordable MG models exclusively for our customers. Enquire here >

• Polestar – Polestar 2 Pre-configured standard and long-range models are available from this month (March 2023). Meanwhile, build-your-own models are available from June 2023. Check it out here >

• Tesla – Model 3 Access existing inventory of the vehicle recently crowned Australia’s most popular passenger car. Enquire on a Tesla >

Want to stay in the loop?

EV Myth: Batteries do not offer enough driving range

Busted

The average Aussie drives 100-250kms per week. The average battery range is 480km, and thanks to rapidly advancing technology many new EV models can drive for almost 550km on a single charge e.g. Polestar 2 long range single motor and Tesla Model 3 Performance.




EV Myth: There are not enough charging stations

Busted


There are 3,000 EV public charging stations across Australia, with the network continuing to expand. Check out the locations here. Some of the fastest chargers can provide 400km range in 15 minutes. Apps such as Chargefox make it easy to locate a fast charger.



EV Myth: Electric vehicles do not perform as well

Busted

EVs deliver full torque instantly, meaning they can accelerate much faster than equivalent combustion engine vehicles. EVs with batteries mounted along the bottom of the vehicle also have a lower centre of gravity, meaning better handling and cornering.




EV Myth: Electric vehicles are bad for the environment

Busted

EVs today are significantly better for the environment. As technology continues to improve and transition towards more renewable energy sources, EVs and their manufacturing will become even greener.

Brands such as Polestar are set on paving the way when it comes to sustainability.

The brand is committed to true transparency, with the Polestar 0 project having the ultimate goal of producing a climate-neutral car by 2030. Its other initiatives include building better batteries and ensuring responsible sourcing.





EV Myth: Electric vehicles are not practical enough for me

Busted

The list of EVs that can tow is increasing. In terms of SUVs, the leaders of the pack are the BMW iX at 2500kg, followed by Tesla Model X at 2250kg. Not far behind are the likes of the Kia EV6 (1600kg) and Volvo XC40 (1500kg). Meanwhile, from Volvo’s sister brand comes the Polestar 2 – a sporty fastback than can tow 1500kg.¹




EV Myth: Electric vehicles are too expensive

Busted

There are multiple options in the market available under the $60K mark from brands such as BYD, MG, Hyundai, and Nissan.

Top-selling EV brand Tesla has recently made the dream of owning a Tesla even more accessible. With its production ramping up, it’s been able to lower the price of both its Model 3 and Model Y vehicles. You may find yourself asking, is it time for a Tesla?




EV Myth: Electric vehicles are more difficult to maintain

Busted

Electric vehicles have significantly fewer moving parts and systems, making them easier and less expensive to maintain. For example, Tesla states that for its vehicles the need for annual service check-ups has been eliminated. Owners only need to bring their cars in to check certain components at specific intervals.




EV incentives across Australia

In addition to Australian Government concession schemes, state-or-territory-based incentives for EVs may be applicable in the form of rebates, discounts, and exemptions. The best way to see what you may be entitled to is to check your state government's website.



Save by novating an EV

We’ve crunched the numbers on popular eligible EV models to demonstrate the savings on offer.


Ready to join the EVolution?

Start your journey towards savings.


References


¹ https://rac.com.au/car-motoring/info/ev-towing-limits

² https://www.whichcar.com.au/news/evs-under-sixty-thousand-dollars-australia


Disclaimer:

The information provided is for the purpose of assisting you with your vehicle selection process only; all orders and delivery times will be subject to stock availability. With global supply issues affecting the auto industry, wait times may be longer than usual.

This article provides general information only about the vehicle/s, it should not be relied upon. SG Fleet is not the supplier or manufacturer of the vehicle and does not take any responsibility for the vehicle or the information about the vehicle contained in this article. You should make your own independent assessment of the vehicle and other sources of information (including the websites of the vehicle distributor/manufacturer).

Vehicle images are for illustration purposes only.

Electric Car Exemption

The Treasury Laws Amendment (Electric Car Discount) Act 2022 received Royal Assent on 12 December 2022. Under this enacted legislation certain zero or low emission cars held and used on or after 1 July 2022 will be exempt fringe benefits where provided by an employer to an employee where the first retail sale of the car is below the prevailing luxury car threshold for fuel efficient cars which is currently $89,332. Further limited guidance on the application of the above exemption can be found on the ATO website. A Customer considering entering into a novated lease for an electric car should seek their own independent tax, financial and legal advice regarding any proposed arrangement including the impact of such an arrangement from a salary sacrifice and reportable fringe benefits perspective. SG Fleet Group is not providing the Customer with legal, tax and financial advice regarding the purchase and financing of an electric car.