Q&A: Why EOFY Is the Smartest Time to Get a Novated Lease
Q: I’ve heard people say the end of financial year (EOFY) is a great time to lease a car. Is that true?
A: Absolutely. EOFY is one of the best times of the year to get a novated lease, and it comes down to three key factors: ATO tax savings, vehicle deals, and smarter budgeting for the new financial year. At CarBon, we see a spike in demand around June for a reason. People want to maximise their tax position before June 30.
Q: How does a novated lease help with reducing taxable income at EOFY?
A: When you take out a novated lease before June 30, your lease payments and running costs can start being deducted from your pre-tax salary this financial year. That means you may lower your taxable income right away. It’s a strategic move that could leave more money in your pocket. For EV drivers, the benefits are even bigger thanks to the ATO’s Fringe Benefits Tax (FBT) exemption on eligible electric cars.
Q: Are there any extra perks for EV novated leasing at EOFY?
A: Yes. Under the ATO’s electric cars exemption, if you’re novated leasing an eligible EV under the $91,387 luxury car tax threshold for 2024–25, you can avoid paying FBT entirely. Combine that with GST savings and bundled running costs, and you’re looking at one of the most tax-effective ways to drive. EOFY is also when dealerships are motivated to clear stock, which can mean better pricing and shorter delivery times on certain models.
Q: What kind of deals are usually available at EOFY?
A: EOFY car deals are some of the best you’ll find all year. Dealers want to hit sales targets and move inventory, so discounts, bonus inclusions, or free upgrades are common. Pair that with a novated lease and you could be locking in a great price with all your running costs (insurance, rego, servicing, tyres) covered in one pre-tax payment.
Q: Can I use EOFY to do a sale and leaseback on my current vehicle?
A: Definitely. If you already own a car outright, EOFY is a great time to explore a sale and leaseback. This lets you unlock the value of your car and lease it back through your employer. You get a lump sum paid directly to you, and the car becomes part of your salary packaging. That means tax savings and financial flexibility without needing to buy a new car.
Q: Will I be waiting a long time to get the car I ordered?
A: Getting in early is key. While June is packed with deals, it’s also when demand is highest. At CarBon, we help fast-track approvals and settle leases quickly. With locations in Perth, Sydney, Melbourne, Brisbane and Adelaide, we have built great relationships with many dealerships across the country which cuts back on the wait times. Your consultant will always advise you regarding vehicle availability. But it’s smart to start the process in May or early June to avoid delays and take full advantage of the current financial year.
Find Out More About Novated Leasing Benefits
Considering a novated lease? The end of the financial year is the ideal time to take action. Unlock your dream of owning an electric vehicle and save thousands on tax with our easy online calculator and transparent novated leasing options. If you have any questions, our team are happy to answer them. Contact us today on 1300 113 477.
Disclaimer
The information provided in this blog post is intended for general informational purposes only and should not be considered professional financial advice. It is crucial to seek advice from a qualified financial advisor to fully understand how novated leasing and related tax implications apply to your individual circumstances. CarBon does not accept any responsibility for any actions taken based on the content of this blog post. Always consult a professional before making financial decisions.
To learn how you can maximise your tax savings this EOFY with a novated lease, contact one of our friendly WA CarBon team members today.
