Is a Novated Lease Worth It for High-Income Earners? 

As high-income earners seek to optimise their financial strategies, novated leasing emerges as a compelling option, especially for those eyeing the latest electric vehicles (EVs). But is a novated lease worth it for high-income earners? Let’s delve into the benefits and considerations of novated leasing, particularly in the context of electric vehicles in Australia. 

Understanding Novated Leasing 

What is a novated lease? In simple terms, a novated lease is a three-way agreement between an employer, an employee, and a finance company. It allows employees to lease a vehicle using their pre-tax salary, which can result in significant tax savings. This arrangement, known as salary packaging, bundles vehicle-related expenses such as registration, insurance, and maintenance into one manageable payment. 

The Financial Benefits for High-Income Earners 

Tax Savings: One of the most significant advantages of novated leasing is the potential for tax savings. By using pre-tax dollars to pay for the lease, high-income earners can reduce their taxable income, leading to substantial tax benefits. This can make a novated lease a financially savvy choice, particularly for those in higher tax brackets. 

Cost Efficiency: With all vehicle-related expenses included in the lease payments, high-income earners can enjoy the convenience of predictable, all-inclusive payments. This cost efficiency can simplify budgeting and reduce the financial burden of unexpected vehicle expenses. 

 Access to Premium Vehicles: Novated leasing provides an opportunity to drive high-end vehicles in a more cost effective way. For instance, a BMW novated lease or a Mercedes-Benz novated lease allows high-income earners to enjoy the benefits of the latest electric vehicles without the hefty upfront cost. 

The Appeal of Electric Vehicles (EVs) 

Environmental Impact: Electric vehicles are an attractive option for those looking to reduce their carbon footprint. With the growing focus on sustainability, an EV novated lease aligns with the values of environmentally conscious high-income earners. 

Government Incentives: In Australia, there are various incentives and rebates available for electric vehicles across the states, making an EV novated lease even more appealing. The biggest is government incentive is no FBT on EVs under the Luxury Car Tax threshold. These incentives can further reduce the overall cost of leasing an electric car. 

Lower Operating Costs: Electric vehicles typically have lower operating costs compared to traditional petrol or diesel cars. Reduced fuel costs and lower maintenance expenses can make a significant difference over the lease term, adding to the financial benefits of a novated lease. 

Using the Novated Leasing Calculator 

To determine if a novated lease is worth it, high-income earners can use a novated leasing calculator. This tool provides a clear picture of the potential savings and costs associated with a novated lease. By inputting details such as salary, vehicle choice, and lease term, users can get an accurate estimate of their financial benefits. 

Practical Considerations 

Flexibility: Novated leasing offers flexibility in terms of vehicle choice and lease terms. High-income earners can select from a wide range of vehicles, including the latest electric models. Lease terms can be tailored to suit individual needs, typically ranging from one to five years. 

Nationwide Availability: Novated leasing is available across Australia, with providers like Carbon Leasing & Rentals offering services in major cities including Perth, Melbourne, Brisbane, Adelaide, Sydney & Canberra. This accessibility ensures that high-income earners can take advantage of novated leasing regardless of their location. 

 Is Novated Leasing Worth It? 

For high-income earners, a novated lease can be a highly beneficial financial strategy. The combination of tax savings, cost efficiency, and access to premium electric vehicles makes novated leasing an attractive option. By using tools like the novated leasing calculator and exploring options from reputable providers such as Carbon Leasing & Rentals, high-income earners can make informed decisions that align with their financial goals and lifestyle preferences. 

In conclusion, a novated lease is worth considering for high-income earners, especially those interested in electric vehicles. The financial advantages, environmental benefits, and flexibility of novated leasing make it a compelling choice. By leveraging the benefits of novated leasing in Australia, high-income earners can drive their dream electric car while optimizing their financial strategy. 

Luxury Car Tax (LCT) and Luxury Car Adjustment (LCA): 

The LCT and LCA are separate amounts.  

Luxury Car Tax (LCT) – There is no LCT included in the purchase of your vehicle and falls under the threshold therefore your vehicle is eligible for the FBT exemption 

What is it? A federal tax levied on cars with a value exceeding a certain threshold. The threshold varies depending on the car’s fuel efficiency. 

Who pays for it? The consumer purchasing the luxury car pays this tax at the point of sale. 

What is its purpose? Primarily a revenue-raising measure for the government. 

What is the threshold?  For the financial year 2024-25, the LCT threshold for fuel-efficient vehicles is $91,387.00 

For all other luxury vehicles, the threshold is $80,567. 

Luxury Car Adjustment (LCA) 

What is it? A calculation used in novated leasing arrangements when the value of a car exceeds the luxury car depreciation limit (currently $69,674 for the 2024 financial year). 

Who it affects? Employers who offer novated leases on luxury cars. 

What is its purpose? To compensate employers for the reduced tax deductions they can claim on luxury cars. Because employers can only claim deductions up to the depreciation limit, the LCA ensures they are not financially disadvantaged. 

How does it work? The LCA is typically calculated for the full lease term and spread evenly over the lease period. 

Whether you’re considering a Tesla novated lease, a BMW novated lease, or exploring other electric vehicle options, a novated lease could be the key to combining luxury and sustainability in your driving experience. And for those with a taste for high-end models, consider leasing premium vehicles like the BMW iX1, BMW iX3, Kia EV9, Mercedes-Benz EQB 250 or other higher-priced options through CarBon Leasing & Rentals, ensuring you drive in style and comfort while enjoying the benefits of electric vehicle leasing in Australia. 

Try our online calculator and get a free quote. 

When considering a new vehicle, whether for personal or business use, navigating the world of financing options can be overwhelming. Enter Carbon Leasing, a leading provider in novated leasing solutions in Australia. With a focus on simplifying the leasing process, especially for electric vehicles (EVs), Carbon Leasing offers an invaluable tool to help potential customers make informed decisions: the online free calculator. In this article, we discuss everything you need to know about Novated Leasing. 

What is Novated Leasing? 

A novated lease is a three-way agreement between an employer, an employee, and a finance company. It allows employees to lease a vehicle using their pre-tax salary, providing significant tax benefits and cost savings. This arrangement not only makes vehicle ownership more affordable but also simplifies the entire process, from acquisition to maintenance. 

The Advantages of Novated Leasing 

1. Tax Benefits: One of the primary advantages of a novated lease is the ability to use pre-tax income, which can reduce the taxable income and result in substantial tax savings.
2. Convenience: All vehicle expenses, including registration, insurance, and maintenance, are bundled into one simple payment. This streamlined approach alleviates the administrative burden on employees.
3. Flexibility: Novated leases are highly flexible, allowing employees to choose their preferred vehicle, including the increasingly popular electric vehicles (EVs).

Why Choose Carbon Leasing? 

Carbon Leasing stands out in the novated leasing market for several reasons: 

– Flexibility: CarBon is one of the only providers in the market that can do non-exclusive one-off leases to any Australian employee.  This means you aren’t locked in with your employer’s leasing provider, we can tailor a novated lease just for you with this quote.   

– Transparency: CarBon is all about transparency, we have no hidden fees and fully disclose our interest rates and commissions. We provide the best quote for you the first time you come to us. Also, you don’t need to be a code cracker to understand our quotes!  

– Expertise in EV Novated Leasing: With the growing interest in electric vehicles in Australia, Carbon Leasing specializes in EV novated leasing. They provide tailored solutions for popular models, including Tesla and BYD, ensuring that customers can enjoy the benefits of eco-friendly driving without the financial strain. 

– Nationwide Service: Whether you’re in Sydney or any other part of Australia, Carbon Leasing offers comprehensive novated leasing services. Their nationwide reach ensures that all customers receive top-notch support and guidance. 

Unfortunately, not every novated leasing provider operates with transparency. Recent media coverage has highlighted some unsavoury practices, and it is very important that you know what you are signing up for.   

Novated Leasing Online Calculator 

At the core of Carbon Leasing’ offerings is their innovative online free calculator. This tool is designed to simplify the decision-making process for potential customers by providing clear and concise financial projections. Here’s how it can help: 

– Instant Estimates: The online calculator offers instant estimates on the costs and savings associated with a novated lease. By entering basic information such as income, vehicle choice, and lease term, users can quickly see the financial benefits. 

– Comparison Tool: The calculator allows users to compare different vehicle options. This feature is particularly useful for those considering a switch to an EV, as it highlights potential savings in fuel and maintenance. 

Exploring EV Novated Leasing 

Electric vehicles are becoming a popular choice for many Australians due to their environmental benefits and long-term cost savings. With the support of government incentives and a growing charging infrastructure, now is an excellent time to consider an EV novated lease. Carbon Leasing offers competitive packages for top EV models, ensuring that customers can enjoy the latest technology with the financial benefits of novated leasing. 

Is a Novated Lease Worth It? 

For many employees, the answer is a resounding yes. The tax benefits, convenience, and flexibility of a novated lease make it an attractive option. Additionally, the ability to lease an electric vehicle further enhances the appeal, combining eco-friendly driving with financial advantages. 

Carbon Leasing is committed to providing exceptional novated leasing solutions tailored to the needs of modern drivers. Our online free calculator is an invaluable tool that empowers potential customers to make informed decisions, whether they are considering a traditional or electric vehicle. By offering comprehensive support and transparent financial projections, Carbon Leasing makes novated leasing in Australia accessible and beneficial for all.  

Explore the advantages of novated leasing today with Carbon Leasing and take the first step towards affordable and eco-friendly vehicle ownership. 

A Better Way to Reward Employees

As an employer, you are aware of the struggles businesses are facing with staff retention.

According to the most recent data from The Australian Bureau of Statistics, job mobility in the country is at its highest level since February 2012.

More and more Australians are switching jobs or seeking a pay increase to cover the rising cost of living.

This economic factor collides head on with the stark reality that not every business in Australia is making record profits.

So how can you balance these two seemingly conflicting economic realities?

As a decision maker, you’re always looking for ways to attract, retain and reward your employees.

Staff that are appreciated are invested in the growth of your business. Good employees are the cornerstone of any successful organisation. A win/win for everyone!

This is where offering novated leasing to your employees may just be the answer you are looking for.

What is a novated lease and how does it work?

The concept of a novated lease is quite simple. It involves a three-way deal between you (the employer), your employee and a leasing company that’s designed to help your employee save money on their car.

The employee chooses the car they want, and the leasing company sends an email to the employer with the simple steps to set it up. With your approval, payments for the vehicle and its associated costs come out of the employee’s pre-tax salary via your payroll department.

Why is offering novated leasing good for your business?

Offering novated leasing to your employees unlocks a range of benefits for your business.

For starters, it is an easy way to boost the take-home pay for your employees. Employees use their pre-tax income for car payments, reducing their taxable income. If the vehicle is an EV it carries no fringe benefits tax, making this particular vehicle class incredibly attractive to offer to employees in a salary packaging arrangement.

Novated leasing unlocks significant savings on the car itself. Suddenly your employees have access to fleet discounts which are negotiated by the provider. Employees also save the GST on the vehicle purchase price and on the operating costs of the vehicle. Giving your employees a good deal is always a positive for any business.

EV novated leasing is a simple, low cost and easy way to genuinely begin greening your business. Employees and stakeholders aren’t shy about holding organisations to account regarding their environmental footprints. We have also seen examples of organisations making false or misleading environmental claims.

This has resulted in the ACCC investigating particularly egregious instances of ‘greenwashing’ and cracking down on claims made by certain companies. Thus, it is important for decision makers to do their due diligence before implementing some of these green initiatives.

Getting it right – partner with a trusted novated leasing company!

With the Novated Leasing Industry under the media microscope lately it’s crucial to choose the right novated leasing company and avoid being locked in with any one provider.

Minimal regulation within the industry means employers must ensure their business provides choice, flexibility and transparency to employees.

It is important to talk to a trusted novated leasing specialist that provides fully transparent leases tailored to each employee. The team at CarBon are committed to ensuring your employees maximise their tax savings with minimal effort from you. Contact CarBon today about offering your employees the benefits of EV novated leasing!

Novated leasing a new electric vehicle (EV) is a smart, flexible way to save thousands in tax – but you need to do your homework before you sign on the dotted line.  Let’s explore how NOT to get short changed on a novated lease. 

For drivers looking to make the switch to zero emissions transport, novated leasing can be a great option offering employees a way to pay for their new EV and its running costs from their pre-tax income.  

With a single weekly, fortnightly or monthly payment, you can cut the red tape and tailor your EV lease terms to suit your needs, plus EVs under $89,332 are exempt from Fringe Benefits Tax providing greater tax savings.  But where’s the catch? 

The Good, Bad & Ugly 

Despite offering a range of genuine benefits, the road to a successful novated lease can be fraught with potential pitfalls, especially when it comes to hidden fees, charges and exorbitant interest rates.  

Recent Australian media coverage has highlighted unsavoury practices among some providers, leading to calls for tighter regulation across the industry.   

The good news is, with the right information and choice, you can find yourself a novated leasing provider that can give you the right lease structure that will suit your lifestyle and keep even more money in your pocket. 

Research is Key 

Before embarking on the hunt for a novated lease, it’s crucial to arm yourself with knowledge – and that means research.  Get to know the specifics of the EV you have in mind, considering factors like current availability, car prices, future market values, maintenance costs and potential government incentives.  

Understanding the market will empower you to make informed decisions, ensuring you’re not blindsided by unexpected vehicle expenses down the road. 

Beware the Hidden Fees! 

Hidden fees and charges are the silent assassins of novated leases. To avoid falling victim to these financial pitfalls, you need to really scrutinise the fine print of your novated lease quotes and the lease agreement. Pay special attention to increased vehicle costs, larger than normal establishment fee’s, effective interest rates, unnecessary insurances, additional administrative fees, and any ambiguous or suspicious-looking clauses that might leave you vulnerable to unexpected costs.   

Don’t be afraid to ask the simple questions!  Less transparent providers may attempt to bundle costs without full disclosure, so it’s essential to be diligent and question anything that seems unclear.  You’ll thank yourself later. 

Transparent Interest Rates 

Interest rates can significantly impact the ability of a novated lease to provide tax savings. Some providers may attempt to lure you in with seemingly low level interest rates, only to load the quote/contract with a high level of hidden charges and fee’s, leading to increased monthly payments.  

Instead, insist on transparency from the outset, ensuring that you fully understand the implied interest rate structure that is being applied to you and how it impacts your overall monthly payment and financial commitment. Compare rates across different providers and be wary of anything that seems too good to be true.  A transparent provider will be happy to disclose interest rates, brokerage and establishment fee’s etc.   

Check the Maintenance Packages 

EVs are generally more straightforward in terms of maintenance compared to their combustion engine counterparts.  However, some novated lease providers may try to bundle unnecessary maintenance packages into your agreement, driving up costs unnecessarily.  

Know and assess your actual maintenance needs and negotiate a package that aligns with the specific requirements of your EV and your driving patterns. 

Leverage Government Incentives 

Make sure you check whether your state or territory offers any special tax breaks or rebates for EVs. Familiarise yourself with the available programs in your region and factor them into your cost calculations. This not only helps reduce your financial burden but also contributes to the overall affordability and appeal of EV ownership. 

Quotes – Compare Apples with Apples  

Navigating the novated lease landscape can be complex. When obtaining quotes, make sure it’s a fair comparison by evaluating the same vehicle models, lease terms and included services – especially the nitty gritty. 

Consider seeking advice from a financial expert and make sure you’re consulting with professionals who specialise in novated leasing and have a good reputation.  

Choosing a novated lease on a new EV can be a rewarding choice if you take a proactive approach! 

By doing your research, negotiating key terms and comparing quotes accurately, you’ll enjoy a successful novated lease experience that aligns with your budget, saves you more money and contributes to a greener, more sustainable future. 

Challenge the status quo with your employer 

Many employers stick with long term arrangements on a preferred supplier basis with novated leasing providers or salary packagers for the sake of ease or to avoid lengthy tender processes.  

Much like the provision of Superannuation funds, employers should encourage choice and allow access to cheaper novated lease arrangements where the employee benefits financially.  

Novated leasing set up for your employer is simple and easy to administer. If your employer refuses your request to pick your own provider, ask for the reasons why they are not allowing you to save more money.  

Try out our transparent calculator 

Novated leasing doesn’t need to be a hassle. At CarBon we are all about transparency. Our quotes are open book and easy for you to understand. We show you what you are paying upfront and break everything down, so nothing is hidden. Try out our transparent calculator and request a personalised quote. Our team is here to ensure you maximise your tax savings.   

Australia is embracing the electric vehicle (EV) revolution and novated leasing has emerged as a convenient, flexible way to access an EV while simplifying your budget and taking advantage of tax incentives and government rebates.

For drivers looking to make the switch to zero emissions transport, novated leasing is an attractive option that offers a compelling blend of financial, environmental and practical advantages that allow employees to pay for a new EV and its running costs from their pre-tax income. With a single weekly payment, you can cut the red tape and tailor your EV lease terms to suit your needs, plus EVs under $89,332 are exempt from Fringe Benefits Tax!

This article explores the ins and outs of novated leasing an EV in Australia, including how a novated lease works, the benefits of novated leasing and how to use a novated lease calculator.

How does a novated lease work?

Novated leasing is a three-party agreement involving an employee, their employer and a leasing company – like CarBon Leasing & Rentals. Here’s a step-by-step breakdown of how it works:

Vehicle selection: You (the employee) choose the make and model of EV that you’d like to lease.

Novation Agreement: You and your employer then enter into a Novation Agreement, which CarBon provides. This agreement transfers the responsibility for lease payments and vehicle-related expenses from you to your employer.

Lease Payments: Your employer then deducts lease payments and associated costs from your pre-tax income.

Vehicle Use: You have full use of your EV for both work and personal purposes.

Expense Management: The leasing company (CarBon) manages and pays for all vehicle-related expenses, including Finance, Registration, Vehicle Maintenance, Insurance, Tyres, Charging Costs and Roadside Assistance.

End of Lease: At the end of the lease term, you have the option to purchase the vehicle, refinance the residual amount or enter into a new lease agreement.

Benefits – Is an EV novated lease worth it?

If you’re considering an EV, novated leasing offers several advantages. One of the key benefits is the potential to save on income tax. As lease payments are deducted from pre-tax income, this usually results in a lower taxable income, leading to a reduced overall income tax liability.

Save on FBT and GST

The Australian Government has announced that all EVs below the Luxury Car Tax threshold of $89,332 are exempt from Fringe Benefits Tax (FBT). This means all finance and running costs can be paid before you pay tax, with no after-tax contribution required. On a Novated Lease, the vehicle and running costs are also exempt from GST.

In addition, novated leasing provides a hassle-free solution for managing vehicle-related expenses. With finance, registration, vehicle maintenance, insurance, tyres, charging costs and roadside assistance all included, it makes budgeting easy and predictable.

The ability to transfer the lease to a new employer if you change jobs also adds to the excellent flexibility of a novated leasing arrangement.

What is a novated lease calculator and how do I use it?

Before diving into the world of novated leasing, it’s essential to understand the financial implications and benefits. A novated lease calculator is a valuable tool that helps individuals estimate the costs associated with leasing an EV. The calculator considers various factors including the EV’s purchase price, lease term, annual kilometres driven and running costs such as maintenance, insurance and charging costs. By inputting these details, you’ll get a comprehensive overview of your potential savings and the impact on your take-home pay.

So why not give it a go? Simply input some basic information into CarBon’s novated lease calculator and find out how much tax you can save on a new EV!

The Future is electric!

Novated Leasing is a convenient and flexible way to access and pay for an electric vehicle and its running costs from your pre-tax salary.

Take advantage of tax incentives and government rebates and get behind the wheel of a new EV today.

Get a Quote

A South Australian company has revealed the second generation of its electric Toyota LandCruiser 70 Series conversion, destined for Australia’s mines.

Zero Automotive says CarBon Leasing & Rentals – which focuses on zero-emissions solutions for mining companies – has ordered 200 examples of its ZED70 Ti single-cab ute.

“We’ve already received a great deal of interest and look forward to deploying these innovative EVs next year to a range of customers,” said Zero Automotive CEO Joe Di Santo.

“Underground mining is an incredibly tough environment for vehicles, and we know we have gone above and beyond to develop this ADR approved package that is up for the task.

“For instance, our HEPS solution can withstand use in highly corrosive environments, which will genuinely increase the longevity and safety of the vehicles in the long term.”

The ZED70 Ti has a 60kWh lithium titanate oxide (LTO) battery supplied by Toshiba. It can be charged at up to 22kW using AC power or 160kW using DC ultra-fast charging, the latter allowing for a charging time of less than 25 minutes.

It has one electric motor which offers 200kW of power and 1200Nm of torque, with regenerative braking available to help top up the battery.

Zero Automotive has installed an electronic brake, isolator switch, manual service disconnect, a battery management system among other safety features.

However, it retains the standard single-cab LandCruiser 79 Series ute’s front and rear suspension, transfer case, brakes, and rear differential.

Zero Automotive says it has been purpose-built for Australia’s mining conditions and includes the company’s Hazardous Environment Protection System (HEPS) underbody protection to prevent corrosion underground.

“Mining operations across Australia are facing increasing pressure to transition their fleets to meet ESG targets and the Zero ZED70 Ti represents a new opportunity to do this in the light commercial space,” said CarBon Leasing & Rentals CEO Scott Gillespie.

The vehicle is only available for mining companies and business use, so unfortunately it’s not something the everyday Joe can pick up from their local Toyota dealership.

The electric conversion’s outputs eclipse those of even the new, more powerful four-cylinder option.

The refreshed LandCruiser 70 Series offers the choice of a 2.8-litre four-cylinder turbo-diesel producing 150kW of power at 3400rpm and 500Nm of torque between 1600rpm and 2800rpm, mated exclusively with a six-speed automatic transmission, or a carryover 4.5-litre turbo-diesel V8 with 151kW and 430Nm mated with a five-speed manual.

Zero Automotive isn’t the only company rolling out electric Toyota utes for Australia’s mines.

In January 2023, SEA Electric signed a billion-dollar deal to convert 8500 Toyota HiLuxes and LandCruisers to electric power for the local mining industry by 2028.

The electric mining vehicles will be delivered to MEVCO who has committed to ordering 8500 units over the next five years.

ZERO Automotive, specialists in electrified light vehicles for the mining space, has unveiled its second-generation Toyota LandCruiser 79 Series-based ZED70 Ti, which features an unprecedented 50 per cent more power, with fast charging in under half an hour.

Founded in Adelaide in 2018, ZERO Automotive’s aim is to produce the world’s safest and toughest electric underground vehicle, with founder Dave Mitchell using his extensive engineering background to shape the future of the space.

Barminco, an underground mining services company, has signed on as the first customer to accept delivery of the model, while CarBon Leasing & Rentals, a zero emissions leasing company, has confirmed an order of 200 ZED70 Ti’s to be added to its leasing roster, commencing quarter four in 2024.

“Mining operations across Australia are facing increasing pressure to transition their fleets to meet ESG targets and the Zero ZED70 Ti represents a new opportunity to do this in the light commercial space,” CarBon Leasing & Rentals chief executive Scott Gillespie says.

We’ve already received a great deal of interest and look forward to deploying these innovative EVs next year to a range of customers,” he says.

The design features ZERO’s proprietary HEPS (Hazardous Environment Protection System) underbody armour protection, which will help to increase the longevity and safety of the vehicle’s chassis in underground applications.

HEPS will also be available as an upgrade for current diesel-powered vehicles.

ZERO Automotive has recently enlisted industry leader Joe Di Santo as its new chief executive, amidst wide-ranging expansion plans.

“Across the board, mining companies have a desire to lower their environmental impact, ZERO Automotive has been working side by side with many in the industry to provide a solution that caters to the very specific needs of underground mining,” Di Santo says.

“Following five years of development, and two years with prototype vehicles under test by Barminco and AusMinerals, we now officially unveil the ZED70 Ti.

“We know we have gone above and beyond to develop this ADR approved package that is up for the task.

“For instance, our HEPS solution can withstand use in highly corrosive environments, which will genuinely increase the longevity and safety of the vehicles in the long term.

“Ultimately, the goal for ZERO Automotive is to become a leader in electrified vehicle drivelines, which is why we are working with trusted industry partners such as ZERO’s Lithium Titanate Oxide (LTO) battery supplier Toshiba, as we look to continue to develop quality solutions that will improve the sustainability of mining.”

“The deal between ZERO and CarBon, marks a significant step towards assisting the mining industry in achieving its zero emission goals while also optimising return on investment.

“We know that vehicle life span is a determining factor when it comes to fleet choices for the underground mining sector, the benefits offered via our innovative partnership with CarBon coupled with our HEPS solution, is the perfect example of how responsible business practices and economic success can be achieved,” Di Santo says.

Under the bonnet, the ZED70 Ti features a Toshiba 60kWh Lithium Titanate Oxide (LTO) drive battery, which retains over 70% capacity after 20,000 full-use cycles.

The architecture features 22kW Level 2 onboard fast charging and is enabled for Level 3 DC ultra-fast charging, which with a 160kW charger, results in a charging time of less than 25min.

The 3 Phase asynchronous electric motor is complete with regenerative braking, with a peak power of 200kW and a peak torque of 1,200Nm.

With a focus on safety, the system features an isolator switch, manual service disconnect, a full battery management system, automatic electrical isolating contactors, multiple mechanical HV isolators, fast-acting fusible links, an insulation monitoring device, and an eBrake.

All important functions of the vehicle can be monitored by the GeoTab telematics platform.

Based on the single or dual-cab Toyota LandCruiser 79 Series, the ZED70 Ti features many of the legacy systems that have given the model an outstanding reputation in the mining field, with items such as the transfer case, front and rear suspension, brakes and rear differential carried over from Toyota.

With business across Australia facing increasing pressure to decarbonise, 2023 has seen unprecedented growth in the number of commercial fleet operators looking to transition to electric vehicles (EVs) – but how and why are they doing it?

According to Scott Gillespie, founder and CEO of EV Transition Specialists, CarBon Leasing & Rentals, Australian companies are eager to integrate sustainable transport solutions into their operations as they move to leverage the benefits of electrification.

“We’re currently seeing a significant shift in the commercial transport sector with businesses acrossa range of industries all seeking to fast track EVs into their fleets. “But with new EVs entering the market and the landscape shifting quickly, it can be difficult to navigate and maximise the substantial economic and environmental benefits that come from zero emissions vehicles.

“By partnering with an EV Transition Specialist, organisations can minimise risk and develop a comprehensive strategy tailored to their specific requirements, with no capital outlay,” Mr Gillespie said. And with demand for commercial EVs outstripping supply, Australian companies are moving quickly to reap the benefits of fleet transition.

ENVIRONMENTAL SUSTAINABILITY
A primary benefit of transitioning to EVs is a reduced carbon footprint. Conventional petrol or diesel-powered vehicles release greenhouse gases including carbon dioxide, methane and nitrous oxide, while EVs produce zero tailpipe emissions.

COST SAVINGS
EVs provide greater cost savings over the life of a vehicle as they have fewer moving parts and require less maintenance. EVs also have a higher energy efficiency rate, translating to lower energy consumption and decreased operational expenses.

ENHANCED SAFETY AND PERFORMANCE
EVs offer superior performance in terms of torque and acceleration compared to their diesel counterparts. This advantage is particularly valuable where heavy loads and challenging terrains demand robust and responsive equipment. Additionally, EVs minimise noise pollution, leading to a safer working environment.

MAKING THE SWITCH
When it comes to integrating EVs into their fleets, Mr Gillespie said companies want flexibility, choice, and low risk options.

“Rather than being restricted to a particular EV manufacturer or vehicle, customers want flexible leasing that gives them the opportunity to pilot different EVs and unlock the benefits while minimising the capital expenditure of procuring the vehicles themselves,” Mr Gillespie said.

“Organisations want to be able choose which vehicles they integrate and when, without having to deal with multiple vendors, which is why EV transition partnership works really well,” Mr Gillespie explained.

In partnership with EV conversion specialists Roev, CarBon recently launched Australia’s first fully electric 4×4 ute – the Toyota electric HiLux to the commercial market.

“The Roev electric HiLux will soon take part in a major Pilot Program in WA’s northwest, where several resources companies will implement them into their operations and test them in real-world conditions to see how they perform.

“Providing opportunities to integrate different EVs without financial risk and/or having to engage with a large supply chain offers a tremendous advantage to companies that are in the early stages of electrification,” Mr Gillespie said.

ESG
With Australian emissions targets now firmly in place, companies are also looking for robust data to support their environmental, social and governance (ESG) targets and reporting.

“Switching to EVs mitigates air pollution and enhances air quality – but it needs to be measured – so all our EVs are fitted with powerful telematics measurement tools that track battery health, emissions reduction and overall fleet performance,” he said.

Mr Gillespie said commercial EVs also provided a major opportunity for companies to insulate against regulatory dynamics, improve brand equity and attract impact investors and consumers.

Australian next-gen car services companies Loopit and CarBon have announced a joint venture that targets the  EV leasing market for growing adoption of electric vehicles by businesses across Australia.

Loopit, a leading car subscription software developer based out of Sydney, and CarBon, a WA-based commercial EV leasing company, say the partnership will focus on the leasing market.

Loopit, which was founded in 2020 by brothers Paul and Michael Higgins – who had originally founded HelloCars, the first fully online used car dealership in Australia, in 2017.

It provides an end-to-end software solution for companies looking to enter the subscription space, or who are looking for a simpler solution to manage their existing subscription fleet.

Founded in 2022, CarBon has partnered with EV conversion company Roev to supply 500 EVs for subscription and leasing to customers and businesses across its first year of operations.

“The beauty of a subscription model is that it allows businesses to dip their toes into the world of EVs by starting with a couple of vehicles for a shorter period,” said Scott Gillespie, CEO of CarBon.

“By doing so, they gain the confidence that if things don’t go as planned, they can easily return the vehicles.

“However, it’s worth noting that many of our subscribers have exceeded the initial period and are delightfully continuing with their subscriptions.”

TRANSPORT and logistic companies are embracing zero-emissions vehicles for last-mile deliveries as customer preference and corporate acknowledgement of environmental issues spreads.

Specialist EV leasing, rental and subscription company CarBon is supporting this corporate trend and this week assisted one of the country’s biggest transport and logistic businesses, Kings Group, boost the number of its EV vehicles to 14 to make it one of the biggest zero-emission delivery fleets in Australia.

Kings started using CarBon in January with five Foton T5 EV trucks and two Skywell EC11 E-Cargo vans. More immediately it plans a further seven vans and trucks from Foton, LDV and Hyundai and then has plans to add even more.

CarBon founder and CEO Scott Gillespie told GoAutoNews Premium that the driver of the EV delivery-vehicle movement has been the interest from businesses and in particular, from customers.

“A lot of customers say they feel good about having a zero-emission vehicle deliver stuff,” he said.

“Retailers are aware of this attitude by customers so a lot are starting to look at how they can use us and the ‘last-mile’ zero-emission vehicles.”

He said that most of the attention towards EV delivery vehicles happened in the past six months.

“Businesses are facing increasing pressure to transition their fleets to meet ESG (environmental, social and governance) targets, but EVs can also insulate against regulatory dynamics, improve brand equity and importantly, they’re projected to reach total cost of ownership parity across multiple use cases in the next decade.”

He said this also applied to CarBon’s other customers that include aged-care services and mobile medical businesses that are interested in small EV cars.

Mr Gillespie said that Kings – which operates the fleet for Ikea and has just expanded to a vehicle in Sydney for BMW parts deliveries – is at the forefront of that trend and that CarBon has been guiding them on what best works for their business.

Kings Group’s group general manager Tim Horsford said his company had made significant progress on its strategy to reduce its carbon footprint as part of its plan to move to more sustainable solutions in transport.

“As a group we’re conscious of our environmental impact, so we’re working with CarBon to take the lead in the integrated logistics sector and transitioning toward zero-emission vehicles where feasible,” he said.

Mr Gillespie said the groundswell of support for EV commercial vehicles is tempered only by the cost of buying new vehicles.

“The ones that are in the market now are not cheap,” he said.

“In many cases, they are more than double the price of a normal van. As an example, the LDV e-Deliver 9 electric van is two-and-a-half times the price of a diesel Deliver 9 van.”

Mr Gillespie said that for this reason, using CaBon services to lease, rent or use a subscription service was generally the best entry into zero-emission vehicles for commercial uses.

“On the positive side, along with the benefits of customer relations by using zero-emission transport, delivery companies cut their fuel bill as electricity is still one-third of the price of diesel,” he said.

“Leasing includes items including vehicle operating costs – but not fuel/electricity.

“Also, some customers pay a premium for using an EV for delivering their products so that contributes to making EVs viable for ‘last mile’ deliveries.”

Mr Gillespie said that CarBon’s role was to guide delivery businesses on what they can and can’t do “and really understand how they’re going to use their vehicle.

“The reason is because some of their contractors might really want an EV but they do too many kilometres to make it feasible.

“Equally, they might have delivery deadlines that make it too inconvenient to recharge unless they have a proper depot with charging facilities.

“It’s really important to understand the limitations of the EV trucks and vans. That’s where we come in. Margins are thin in these businesses and it’s critical to ensure that the right type of vehicle is being used.

“For us it’s about guiding the business, advising them, helping them with their charging infrastructure and ensuring that their deployment is a success.”

CarBon is working with all brands offering commercial trucks and vans. It offers the ones to clients that best suit their individual delivery needs.

These include Foton, LDV and Hyundai and also a specialist Chinese-made van Skywell 12cu.m van which he classifies as “a very good product”. CarBon has multiple vans in use without any problems, he said.

“There are other suitable vans and trucks coming into the market,” he said. “These include the Ford e-Transit, a smaller LDV model, and JAC with a range of trucks.”

Clients also represent a diverse range of industries, from local councils to mining and civil construction.