Welcome to everything Tesla Novated Lease in Australia

All of the Tesla vehicles below can be Salary Packaged 100% Tax Free on a Novated Lease. Click on any vehicles below for more details and useful links. We’ll update this list as soon as more models become available.

Below the calculator is all the information you’ll need to know on owning and leasing one of these magical Tesla vehicles.

For even more information, you can talk to one of our new team members who owns a Tesla and has learned everything you’ll need to know from experience.

A crucial part of setting up a novated lease is the salary packaging arrangement, which involves working with your employer to ensure all necessary agreements and documentation are managed effectively.

Benefits of Tesla Novated Lease Australia

Novated leasing in Australia offers several benefits for employees, including:

  • Consolidated Payment of Car Expenses: Novated leasing in Australia allows employees to bundle lease payments and running costs into one convenient regular payment.
  • Significant Tax Savings: Employees can reduce their taxable income and increase their disposable income by making lease payments with pre-tax salary.
  • Inclusive Coverage of Running Costs: Novated leasing in Australia can include coverage of running costs such as charging, comprehensive car insurance, servicing, registration, and tyres.
  • Flexibility: Novated leasing in Australia allows employees to choose from various Tesla models and add approved optional extras and accessories.
  • Customised Driving Experience: Employees can tailor their driving experience to their needs and preferences.
  • Options to Upgrade, Extend, or Purchase the Vehicle at the End of the Lease Term: Employees have flexibility in their choices at the end of the lease term.

What’s Tesla Ownership Like in Australia?

  • The Tesla ownership experience is often described as unique and different from traditional car ownership. Here are some aspects that Tesla owners frequently highlight:
    1. Electric Performance: Tesla vehicles are known for their impressive acceleration and smooth, quiet electric powertrain. The instant torque provided by electric motors makes for a thrilling driving experience.
    2. Range and Charging: Tesla cars offer a substantial electric range compared to many other electric vehicles. They have an extensive network of Supercharger stations worldwide, allowing for convenient and fast charging on long journeys. Additionally, home charging solutions, such as Tesla’s Wall Connector, enable owners to charge their vehicles overnight.
    3. Autopilot and Full Self-Driving: Tesla vehicles come equipped with advanced driver-assistance features known as Autopilot. These capabilities include adaptive cruise control, lane centring, and automatic parking. Tesla is also actively developing Full Self-Driving (FSD) technology, aiming to achieve fully autonomous driving.
    4. Over-the-Air Updates: Tesla cars receive regular software updates, often delivering new features, performance improvements, and bug fixes. These updates are delivered over the air, allowing owners to enhance their vehicles’ capabilities without visiting a service centre.
    5. User-Friendly Technology: Tesla’s vehicles feature large touchscreens and a minimalist interior design. The interface is intuitive and user-friendly, offering access to various vehicle settings, entertainment options, and navigation features. The touchscreen also provides information on charging locations, energy consumption, and more.
    6. Service and Support: Tesla’s approach to service and support is somewhat distinct. They have service centres in various locations where owners can schedule maintenance or repairs. Additionally, Tesla offers mobile service in select areas where technicians visit the owner’s location for certain repairs or inspections.
    7. Community and Enthusiast Culture: Tesla has cultivated an active and passionate community of owners and enthusiasts. Many Tesla owners enjoy connecting with others through online forums, social media groups, and organised events. This sense of community often adds to the overall ownership experience.

Please note that experiences can vary based on individual preferences, geographical location, and specific Tesla model ownership. However, these aspects generally contribute to the unique and exciting ownership experience often associated with Tesla vehicles.

Tesla Novated Leasing

Tesla Model 3 Novated Leases in Australia

The Tesla Model 3 is the entry-level sedan sold by Tesla in Australia and is the most affordable model in Tesla’s lineup, starting at $59,792. The purchase price of the Tesla Model 3 influences the residual payment due at the end of a novated lease and can offer potential tax benefits. Here are some key features of the Tesla Model 3:

  1. Electric Motor/s: The Tesla Model 3 is powered entirely by electricity. It does not have an internal combustion engine and relies on an electric motor and a battery pack for propulsion.
  2. Range: The Tesla Model 3 comes in several configurations with varying range capabilities, depending on the battery option chosen. It has three options: Standard Rang Plus, Long Range, and Performance models. The range of these models varies from 423 to 568 kilometres.
  3. Performance: The Tesla Model 3 offers impressive acceleration. The higher-performance versions, such as the Performance and Long Range variants, can accelerate from 0 to 100 km per hour in under 4 seconds, as fast as most supercars.
  4. Autopilot and Full Self-Driving Capability: Tesla vehicles, including the Model 3, come with advanced driver-assistance features known as Autopilot and include adaptive cruise control, lane centring, and automated parking. You can also order the Full Self-Driving (FSD) option.
  5. Interior and Technology: The Model 3’s minimalist interior design features a large touchscreen display in the centre of the dash. This display houses all vehicle functions, including climate control, media playback, navigation, and Autopilot settings.
  6. Safety: The Model 3 has a 5-star ANCAP safety rating in Australia. It incorporates safety features like advanced driver-assistance systems, collision avoidance technology, and an extensive suite of sensors.
  7. Charging: Tesla Model 3 owners can charge their vehicles at home using a standard electrical outlet or a dedicated home charging station for faster charging. Additionally, Tesla has an extensive Supercharger network, which allows Model 3 owners to access high-speed charging infrastructure at various locations worldwide.

Please refer to the Australian Tesla website for more updated and detailed information on this Model.

Information about our EV Novated Lease Calculator

New government legislation aims to make EVs more affordable through novated leasing, but the critical question remains: “What will it cost me?” Vehicle Solutions in Australia’s novated lease calculator gives you an instant estimate of the cost to your take-home pay for any vehicle up to the FBT-exempt limit of $91,387.

When using a novated lease calculator, it’s essential to know what’s included and what’s not. Providers may adjust fuel, tyres, and service costs to lower quotes, which can lead to higher expenses later. Always review the running costs and their calculation to ensure an accurate estimate.

The Calculations

Charge Allocation (Was the old-fashioned fuel)

In our novated lease calculator, we have included an allocation of $750 per year for charging your vehicle. Depending on usage, this can be changed before starting the lease or at any point during the lease term.

Tyres

In a novated lease calculator, tyre budgets vary due to price differences based on tyre type. We research average costs per vehicle category and apply them to an estimated tyre replacement schedule to set the budget.

(Average cost of a tyre X 4) = Cost of a set of tyres.

Your annual km travelled X the lease term in years = Total KMs

Total KMs/35,000kms (average tyre change period) = Sets of tyres required.

Sets of tyres required X Cost of the set/years of lease = Total tyre budget per year.

Example: Mary drives 15,000 km per year and is about to start a 5-year lease. A set of her tyres costs $850.

15,000 X 5 = 75,000kms /35000 = 2.14 sets of tyres X $850 per set = $1,819/5 years = $363.80 per year.

Maintenance

Most cars need a service every 10,000 to 15,000km, and the cost depends on the type of vehicle you choose. However, EVs generally require less servicing, so we have allocated $350 annually.

Registration and Insurance

For registration and insurance renewals, we use an estimate again depending on the type of vehicle chosen.

Finance

The finance is on a standard novated lease calculation with minor variations.

  1. There’s often concern about the balloon payment at the end of a lease, called the residual or final value. While novated leasing lets you pay for the car through your employer, saving on tax, you don’t gain equity in the vehicle. Leasing a vehicle below the luxury car tax threshold can result in substantial tax savings, mainly due to exemptions from fringe benefits tax. At the end of the lease, you’ll need to pay the car’s market value.
  2. Your first year of Comprehensive Car Insurance can be financed, so no upfront payment is needed. When it’s due again, simply send the renewal, and your Salary Packaging provider can pay it from your novated lease account.

Residual Value

The balloon payment at the end of your lease, known as the residual value, must be paid based on the car’s market value. Individuals can purchase the vehicle outright at the end of the lease term. While paying through your employer saves on tax, you don’t gain equity in the car, so the balance is due at the end of the lease.

GOOD NEWS! Because there is a residual value at the end, your repayments are cheaper during the lease term. Most people use these cheap finance payments to get into a more expensive car.

The residual value is an ATO-set percentage based on the lease term, but it has a buffer of approximately 5% on either side of the required rates. Please read a more detailed article and view the ATO-set percentages by clicking HERE.

Loan or Lease

For most people buying a car means they need some form of finance. One of the most common questions is wouldn’t I be better off putting the car on a standard car loan? To get a true comparison of the difference between a loan and a lease, please read our article by clicking HERE.

Finance Approval Conditions

Once you’re satisfied with the results from our novated lease calculator, the next step is lease approval. Approval is typically easier than standard finance since payments are deducted from your pre-tax salary, giving financiers confidence in repayment.

 

To get a pre-approval started, click HERE. Pre-approval gives you non-binding approval on your chosen vehicle without pressure to proceed. It strengthens your negotiating position, allowing you to request a cash price for immediate delivery.

We hope that you have found both our Novated Lease Calculator and information on each aspect of the calculator helpful.

If you have any questions about the figures or want to discuss the process, please call us during business hours at 1300 990 880 or simply click the button below to send us an inquiry form.

Frequently Asked Questions (FAQs)

Yes, salary-sacrificing a car through a novated lease in Australia can be worth it, especially for tax savings. By paying for the vehicle and running costs using your pre-tax income, you can lower your taxable income, reducing the tax you pay. This can lead to significant savings, especially for higher-income earners

The monthly cost to lease a Tesla can vary depending on the model, lease term, and included running costs. On average, a Tesla lease in Australia could range from $1,000 to $2,000 per month, but this can differ based on the specifics of the lease.

Leasing a Tesla for just six months is uncommon, as most lease agreements have terms ranging from 2 to 5 years. Shorter-term leases may be available through specialised leasing companies, but you’ll need to confirm with your provider if such an option is possible.

The monthly bill for a Tesla includes the lease payment, insurance, and running costs like electricity for charging. Depending on the model and electricity rates, your monthly expenses could range from around $1,000 to $2,500.