How salary packaging an EV works
Your employee pays for an EV subscription from their pre-tax salary, which can reduce the amount of tax they pay. It’s like a novated lease, but with the flexibility of a subscription.
Benefits for employers
Benefits for employees
Managing subscription requests
To set up a salary-packaged subscription, parts of the EV Subscription Agreement between AGL and the employee must be novated to you, the employer.
We’ll enter into a Master Services Agreement with you to enable this, and you can choose how to manage your employees' subscription and packaging requests.
More EV options
Questions about salary packaging
Novation refers to the transferring of certain rights and obligations under a contract from one party to another. In the case of a novated EV subscription, the obligation to pay the subscription fee (and a handful of associated provisions) are novated to the employer.
You're not incurring these costs out-of-pocket as an employer. You simply deduct the subscription payments from the employee's pre-tax salary via payroll.
All other responsibilities under the contract remain with the employee, and the novation agreement provides that the relevant payment obligations are novated back to the employee in a range of scenarios, including if their employment is terminated.
We offer 6 or 12 month plans for salary packaged EV subscriptions. Unlike a novated lease, where the standard term is 3 years, our short-term subscriptions offer the financial benefits associated with a novated lease but without the long-term commitment.
No, home chargers can’t be salary packaged. Employees who want a dedicated EV charger installed at home will need to pay for it separately.
Note that all EV subscription vehicles come with a standard portable charger that plugs into any standard power point.
Employees can cancel anytime after 1 month by contacting us with 30 days notice. However, cancelling before the subscription ends will incur an early termination fee, which can’t be salary packaged.
