Salary packaging for electric vehicle subscriptions

How to salary package an EV subscription 

1. Choose a car
   Check out our range of EVs and use our calculator to estimate your likely out-of-pocket costs.

2. Submit application
   Choose a 6 or 12 month subscription term, and enter some basic information. We’ll check your eligibility and get in touch with you to organise the rest.

3. Employer onboarding
   Your employer needs to approve your request to salary package an EV subscription. If your employer doesn't have a salary packaging agreement with AGL, we can work with you to provide them the information they need to get set up.

4. Sign the contract and have your car delivered
   Your contract will tell you when you can expect your EV to be delivered. If the EV you choose is unavailable, we’ll provide another EV while you wait.
   Your employer will deduct the subscription fee from your pre-tax salary and pay it on your behalf. 

5. Purchase a home charger (optional)
   Your subscription includes a portable level one charger – but if you’d like to upgrade, you can purchase a home charger and book an installation through AGL.
   Note: The cost of buying and installing a charger can’t be salary packaged.

Eligibility 

To be eligible to salary package an EV subscription through AGL, you must: 

• hold a full Australian driver’s license 

• be between 25 and 65 years old 

• provide your insurance history information

• have worked at the company for more than 6 months

• have an employer who will accept novation of the EV subscription agreement (for details, check out Offering Salary Packaged EV Subscriptions to your employees.)

See full eligibility requirements in our EV Subscription Terms.

If your employer doesn’t currently offer EV subscriptions or novated leases 

EV subscription salary packaging has benefits for employers as well – so if your employer doesn’t offer it already, it’s a good idea to ask.

To help you with the conversation, we’ve put together an employer pack and an employer page that you can share with your employer. 

If you’d like AGL to discuss it with your employer instead, just send us the details of the best contact person at your organisation – ideally someone in HR who manages employee benefits. We’ll reach out to them to discuss the program. 

Minimum subscription term 

The minimum term is set by your employer's benefits team, and will be either 6 months or 12 months.

You can cancel your subscription any time after one month (by giving us at least 30 days notice), but you’ll need to pay an early termination fee if you cancel within the minimum term. Before you cancel your plan, make sure you check the full details in the EV Subscription Terms.

If your employment ends for any reason you’ll need to either return the car, or switch to a standard subscription to continue using the car. If your new employer is willing to sign up with AGL (or already has an agreement in place), you might be able to transfer the salary packaged subscription to your new employer. 

Payments 

Salary packaged subscriptions are invoiced to your employer, so you won’t need to pay for your subscription directly.

Billing cycles

We’ll invoice your employer for a weekly, fortnightly or monthly amount (depending on your pay cycle), and they'll deduct that amount from your pre-tax salary.  

Subscriptions are paid in advance, but sometimes a subscription starts before the first billing cycle. If this happens, we’ll simply add the difference to the final invoice. For example, if you get paid monthly on the 14th, but you pick your car up on the 7th (a week before your employer makes the first payment), we’ll add that week to your final billing cycle.

Chargers

Your subscription already includes a portable level one charger, but you might want to upgrade to a faster home charger.

Home chargers can’t be salary packaged, so if you choose to buy a home charger and have it installed, you’ll need to pay for that separately. 

Charging costs are not included in the EV subscription.

Income tax and fringe benefits tax (FBT) 

Employers pay tax on the value of certain benefits they provide to employees. This is called fringe benefits tax (FBT).

Salary packaged EV subscriptions are FBT-exempt, but are still a reportable fringe benefit. This means employers don’t pay tax on them, but still report the value of the EV subscription to the ATO.

As an employee you won’t pay tax on the value of the salary packaged subscription, but that value can affect certain entitlements and liabilities you might have, for example, the Child Care Subsidy or HECS repayments. Visit the ATO website for a full explanation of how salary sacrifice affects tax, super and government benefits.

The EV salary packaging calculator on our website is based on Australian resident tax rates and doesn't account for other components like the Medicare levy, HECS liability, or Child Care Subsidy. The calculator provides an estimate only, based on certain assumptions. Your actual tax payable and overall benefit will depend on your income, marginal tax rate, and various other individual circumstances. You should seek advice from a financial/tax adviser before making any decision to salary sacrifice your EV subscription. For more information, take a look at our page about calculator assumptions for salary packaged EV subscriptions.