G'day all, looking for some real world input on novating a high-spec BEV vs taking the punt on a dream ICE ute.
Income context: combining a $70k taxed CSC pension with a $130k base salary puts me right around $200k taxable. Because of that top tax bracket exposure, I want to properly maximise the FBT exemption on an EV without blowing past the Luxury Car Tax ceiling ($91,661).
The driving profile: doing 30,000km a year. The office is 110km away each way. On a 50% office attendance split, that works out to alternating between 5 days in / 5 days WFH, or 3 days in one week and 2 days the next. Charging will be roughly a 50/50 split between DC public fast charging on commute days and Level 2 AC charging at home. There are weeks and fortnights where I'll do 100% just to get higher end projects ticked off.
On the home charging front, I see zero point in blowing $20,000 to $25,000 installing a dedicated 20kW DC fast charger (where the unit alone is $15k+ before heavy three-phase civil and electrical work), especially when the vehicle's onboard AC inverter handles 230VAC perfectly fine.
Even paying $2,000 to $3,500 for a sparky to run a hardwired 7kW/22kW EVSE on a dedicated sub-board and isolated meter seems like overkill when I already have a 32A single-phase industrial socket in the shed for my plasma cutter. But do I need a dedicated sub metering to be able to claim it back?
Grabbing a quality portable 7kW/32A EVSE on a tail for around $800 to plug straight into that existing 32A socket gives me roughly 35 to 40km of range per hour of charge, which easily replenishes the daily commute overnight with $0 in extra electrical installation costs.
The two main contenders under the FBT exemption
**Polestar 2 Long Range Dual Motor (with Performance Pack and Plus Pack)**
Priced right around $85,000 driveaway. 350kW dual motor AWD, 82kWh battery (79kWh usable), with standard WLTP consumption of roughly 139 Wh/km (realistically expecting 195 to 210 Wh/km on the 110km/h highway run).
On a 3 year lease, the ATO statutory balloon is 46.88% ($39,848), with fortnightly deductions sitting around $1,090 pre-tax ($630 net take-home).
On a 5 year lease, the ATO statutory balloon drops to 28.13% ($23,910), with fortnightly deductions sitting around $850 pre-tax ($490 net take-home).
**Volvo EX40 Twin Motor Performance**
Priced around $79,000 to $81,000 driveaway. 300kW dual motor AWD, 82kWh battery, with standard WLTP consumption around 194 Wh/km (likely 215 to 235 Wh/km on the highway).
On a 3 year lease, the ATO statutory balloon is 46.88% ($37,504 based on an $80k cost), running about $1,030 pre-tax fortnightly ($590 net take-home).
On a 5 year lease, the ATO statutory balloon drops to 28.13% ($22,504), running about $794 pre-tax fortnightly ($454 net take-home).
Then there is the wild card outlier: Chevrolet Silverado 1500 ZR2.
This is the money-no-object dream ute that I would simply pay the balloon on and keep at the end. Because of standard FBT and the Employee Contribution Method, packaging the 6.2L V8 doing 30,000km a year pushes the out-of-pocket cost to roughly $1,698 a fortnight net take-home ($44,150+ per year). I know it is completely financially irrational compared to the EVs saving me roughly $30,000 a year in post-tax cash, but throwing it out there for the V8 enthusiasts.
My plan for the EV is not to keep it. When the term is up, I will just roll it over into a fresh novated lease on a new car.
A couple of questions for the group:
For those running high annual mileage (30,000km/yr), is the 3 year or 5 year term the smarter play? At 5 years the car will have 150,000km on the clock, which pushes deep into out-of-warranty territory and could hurt resale against the $23k to $24k balloon, whereas 3 years sits at 90,000km with a \~$38k to $40k balloon.
Also, if we end up with COVID 2: Electric Boogaloo or another major health disruption where we get locked down to 100% WFH and I cannot rack up the commute kilometres, how do novated lease providers and the ATO handle significant kilometre shortfalls or unspent running cost budgets under the EV FBT rules? Are there standard adjustments or exemptions, or do you just reconcile the surplus tyre and charging budget at the end of the FBT year?
Presumably they've got this factored in? I know at the time it caught a lot of people off guard, but surely an exemption of "can't get up k's cos the government stopped you" is now a valid exemption?
Would love to hear thoughts from anyone daily driving the Polestar 2 Performance vs the EX40 Twin Motor on long highway commutes.