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Salary packaging electric vehicles (EVs)

An affordable, flexible way to drive an EV

Salary packaging an EV subscription can have benefits for both employees and employers. Also known as salary sacrifice, salary packaging can help reduce the out‑of‑pocket cost of an EV for staff.

The option to salary package an EV subscription is available through our partner, Karmo.

Illustration of a car in front of an oversized moving box. A gold coin is floating out of the box.

What is salary packaging?

Salary packaging is when an employee pays for a good or service with their pre-tax income.
 

Employees can take advantage of salary packaging with an EV subscription, provided their employer agrees. It’s similar to a novated lease, but with the flexibility of a subscription.

Benefits of salary packaging an EV subscription

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Tax savings

Employees can lower their income tax by reducing taxable income and make more savings with a fringe benefits tax¹ exemption.

Save on GST

Employees could instantly save 10% off the EV subscription as employers can claim this tax credit.

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Ready to drive

The EV comes with comprehensive insurance, 24/7 roadside assistance, general servicing and maintenance. All that's left to do is charge and drive.

Discover the savings

Calculate the possible savings with a salary packaged EV subscription. Simply start by entering the weekly subscription fee and employee’s annual salary.

With salary packaging*

a week

Without salary packaging*

a week

Total savings (annualised)*

$—
Cost breakdown
$60,000
$—
$—
$—
$0
$—
$—
$—

*These figures are indicative only and have been based on assumptions. This general information doesn't take your personal circumstances into account. Salary packaging may impact your entitlement to certain government benefits such as childcare, or your liability to the Medicare Levy Surcharge or HECS (amongst other things). Please consider whether this information is right for you before making a decision and seek independent professional tax or financial advice.

The EV subscriptions salary packaging calculator is designed to provide a reasonable estimate of the weekly costs and savings associated with salary sacrificing an EV subscription. But the results are indicative only and shouldn’t be taken to be financial or tax advice.

The calculator is based on the following assumptions:

Subscription cost
The subscription cost assumes the standard inclusions, being the vehicle, registration, insurance, roadside assistance and regular maintenance. Costs not covered in the subscription, that will need to be paid post-tax include; charging costs, home charger purchase costs, tolls, insurance excess, damage repairs and non-fair wear and tear costs, and minimum term related costs including early termination fees or term periods that are ineligible for FBT exemption.

Joining fees
Joining fees are not included in the calculator estimate. 

FBT liability exemption
Calculations are based on the car meeting the ATO exemption criteria.  

GST
The calculations provided on this website assume that the relevant employer is registered for GST and can claim a full credit for GST paid.

Tax
The calculations provided on this website are calculated and estimated based upon the official tax rates current as at July 2026 for the 2025-26 Australian resident tax rates provided by the ATO. No allowance has been made for other components in the income tax calculation including but not limited to Medicare levy, HECS liability or Child Care Subsidy. The calculator does not take into account all relevant details about the individual’s tax or financial circumstances. The actual tax payable by you or deduction available to you (if any) will depend on your personal circumstances. You should seek advice from a financial/tax adviser before making any decision. 

Charging
Charging costs are not included in the calculator estimate, nor is the cost of home charging hardware or installation.

Kilometres
Calculations are based on the usage being within the kilometre allowance of the subscription contract.

Employer participation
To be eligible for this product, your employer will need to agree to accept a novation of the EV subscription agreement.

Learn more about EV products

Find out more

Explore salary packaged EV subscriptions and find one that suits you.

 

¹Employers 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.