Financial institutions around the world are increasingly in favour of funding more eco-friendly technologies. Among these are electric vehicles, which promise a greener future and more affordable transportation for all.
If you want a new vehicle for your business and are in search of good deals on business car finance in Robina, then consider whether an electric vehicle is indeed the way to go.
Here are some factors you might want to take into consideration when weighing up your options.
There Are Tax Benefits
When it comes to purchasing electric vehicles, the Australian government has worked to incentivise them. This means that not only is it good for the environment, but it could also actively save you money on your purchase.
The government launched its initial strategy for electric vehicles in September 2022. The Federal Parliament subsequently gave its approval to the “Treasury Laws Amendment (Electric Car Discount)” bill in November 2022.
With the help of this legislation, battery-electric and plug-in hybrid vehicle (PHEV) costs can be reduced by up to $2 000. Moreover, fleets and novated leases are exempt from the fringe benefits tax (FBT).
The government typically levies the FBT on specific non-cash benefits that employers give to their workers. It is imposed to make sure that employees are not given undue extra benefits in place of cash wages, which might be used to evade paying income taxes.
When it comes to eligible cars that were first used on or after July 1, 2022, this law will be retroactive and apply to them as well, which is good news if you already own one. On the downside, PHEVs will only be included at first, but this clause will expire on April 1, 2025. Battery-electric vehicles, however, will remain eligible indefinitely.
There Is Some Risk Involved
While electric vehicles offer the benefit of lower operating costs since they require no traditional fuel, the problem in Australia is that there just is not enough charging infrastructure available yet to make long-distance travel by electric vehicle viable.
In addition, electric vehicles remain significantly more expensive up front, owing to the combination of a lack of economies of scale and limited access to the resources required for their construction. However, banks are generally more inclined to finance electric vehicles as they see them as a positive long-term investment, even if the cost is higher.
If you are on the fence about whether or not to pursue an electric vehicle strategy, speak to us at iCREDIT today. We can help you select the best business car finance in Robina that takes into consideration your eco-ideals and aspirations while also keeping your bottom line in mind.