Articles by Stephen Corby

Buying a car outright - a new car, no less - has long sat just below the increasingly Everest-like peak of Australian aspiration; home ownership. Indeed, for most of us it is the second-largest financial decision of our lives.The key difference is that when you own a home, you return each night to a warm bed and the comforting reassurance that the roof over your head is appreciating in value.Cars, on the other hand, have a nasty habit of greeting you each morning as a rapidly depreciating lump parked on the driveway.Leasing (whether novated, finance, or operating) offers a compelling alternative to outright ownership, provided you know exactly what you’re signing up for.Essentially, leasing a car equates to renting one – usually for a set period between two to five years, with fixed monthly payments.When the lease concludes, rather than having to face the cost of depreciation you face when buying a car outright (unless it’s a rare Ferrari or similar), you can simply hand the keys back and move on – ideally straight into another shiny new lease.Before discussing how to lease a car, however, it’s important to understand the different options available.The most popular is what’s called a novated lease, which is an arrangement where your employer helps manage your lease payments directly from your pre-tax salary (a state of payroll martyrdom called salary sacrificing, which sounds a lot more bloody and alarming than it actually is).This reduces your taxable income and subsequent income tax bill, potentially freeing up more disposable cash for life’s little pleasures, or the big ones, like paying off your house.How does a novated lease work? Running costs like registration, insurance, fuel, and servicing are likely to be bundled into your monthly payments.It will also involve Fringe Benefits Tax, which is calculated based on the vehicle’s value and annual kilometres travelled.At the end of your lease, you’ll face a balloon payment (think of it as a large sack filled with money rather than air) that will have been agreed in advance.You can pay that figure to take ownership of the vehicle outright (if, say, you’ve fallen hopelessly in love with it) refinance the residual through another lease or loan, or sell or trade in the car to pay it off.If the car’s market value exceeds the residual, you’ll pocket the savings. If not, you’ll have to cover the shortfall.Finance leases take a more bread-and-butter approach for those who intend to eventually own their leased vehicle.It’s a direct agreement between you and a finance provider, where you make regular monthly payments and agree upfront on a residual value – a lump sum to purchase the vehicle outright at the lease's conclusion.It's important to consider this residual value carefully, otherwise you might end up owing more than the vehicle's market worth.Lastly, there are operating leases – which are popular among businesses and people who don’t like to be tied down. They tend to be more of a short-term arrangement than other leasing options and usually include maintenance costs.You use the car, make fixed payments, and simply return it when the term ends – leaving you free to switch vehicles as you please.But every financial arrangement has its thorns, and so too, car leasing comes with both advantages and drawbacks, compared to buying.Leasing typically requires less upfront capital and offers lower monthly repayments compared to traditional car loans.Additionally, maintenance and running expenses can be bundled in to your payments, so you’re less likely to be blindsided at service time.The flipside is you won't own the vehicle unless you settle the residual, which may leave an aspirational itch unscratched for some. Plus, leases usually impose strict kilometre limits and expectations regarding vehicle condition, meaning rough treatment might incur additional costs when you return it.Comparing leasing to buying ultimately depends on your attachment to vehicle ownership and your overall financial goals.Leasing provides flexibility and can offer tax advantages, which can be particularly appealing to individuals or businesses looking for predictable costs and minimal initial outlay.On the other hand, buying outright offers complete ownership freedom paired with depreciating vehicle value.So, how do you lease a car in Australia? Firstly, put your thinking cap on and decide which lease type best fits your needs. Shop around for providers, compare deals, and pore over the fine print, repayment schedules, and residual amounts.After all that due diligence, you’ll hopefully drive off knowing exactly what you're responsible for.Like most major decisions in life, the best leasing option hinges on your personal and financial situation (and it might be worth consulting your accountant, or a taxation professional, before making your decision).Novated leases suit employees looking to leverage tax benefits through salary packaging. Finance leases appeal to businesses and individuals aiming to ultimately own the car without the initial cash outlay. Operating leases are a sound choice for those who want flexibility and an easy exit.You should, of course, be mindful of potential pitfalls across all leasing options. Changing circumstances, such as a job switch, could leave you liable for ongoing novated lease payments.Administration fees and potentially higher interest rates compared to traditional loans should also be factored into your decision making.Ultimately, leasing isn't inherently better or worse than buying – it's another financial tool available to help you drive the car you want, sooner.Whether leasing is right for you depends entirely on your specific circumstances, financial position, and a knack for understanding fine print.This material has been prepared for information purposes only. It should not be taken as constituting professional advice and you should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.

Few employee perks can trump a company car (pizza parties run a close second), but if you’ve ever thought about providing a set of wheels for your staff, you’ll have found that the Fringe Benefits Tax can give your ABN savings a serious uppercut.In an effort to keep the rest of the world from accelerating away from us towards an electric car future, however, the Australian Government introduced an electric vehicle FBT exemption in 2022.What this means is that if you decide to provide an eligible EV as part of a salary package, you can reap all the usual benefits that come with buying a car with your ABN.Normally, FBT (FBT meaning Fringe Benefits Tax) applies when an employer provides a non-cash benefit to an employee in place of, or in addition to, their salary.These perks are called encouragement rewards. No, sorry, they’re called fringe benefits, and usually materialise as things like gym memberships, free concert tickets and company cars.In the case of company cars, the tax is triggered only when the vehicle is used for personal purposes (going to Bunnings for a sausage sandwich isn’t work, unless you’re a tradie) rather than for work.How much is FBT on a car? Using the Statutory Method, FBT is charged to the employer by applying a 47 per cent tax to a grossed-up 20 per cent of the car’s value.Yes, that does sound typically ATO complex, but fortunately there’s a handy FBT Calculator that crunches the numbers for you. Usually there’s a fair bit of record keeping involved when it comes to FBT, but the electric car FBT exemption lightens the load considerably.The government wants more people driving cleaner, greener cars as it works towards its zero-carbon goals in 2500, no, sorry 2050, and an FBT exemption for electric vehicles is a clever sleight of hand to achieve that goal.In the short term, business owners save thousands of dollars while making their fleets cheaper to run (no fuel costs, if they can use solar to charge their EV fleets the savings are even bigger) and more environmentally friendly.As a bonus, because fleet vehicles are often sold after three to four years, the theory goes that the second-hand market will soon have a healthy supply of relatively new EVs – many still under warranty – at more affordable prices for everyday Aussies.Paying no FBT on electric cars is a great way to save money, but there are strings attached. First, it must be a battery-electric vehicle (BEV), a hydrogen fuel cell vehicle (FCEV) and good luck with that, or a plug-in hybrid electric vehicle (PHEV).No matter which one you go for, the car must be used by a current employee or an immediate family member. Keep in mind that the PHEV FBT exemption will end on 1 April 2025, while the BEV one will continue.Second, the car must have been first purchased and used on or after 1 July 2022. If you bought an EV before that date, the prize for early adoption is paying the standard rate of FBT.Finally, the car’s price must be under the Luxury Car Tax (LCT) threshold for fuel-efficient vehicles (currently sitting at $91,387) to qualify for the exemption. Being the golden goose that it is, the LCT clause doesn’t just apply to the initial sale – it sticks with the car for life.So, even if you manage to find a used Porsche Taycan priced under the current LCT threshold, it won’t qualify for the FBT exemption, now or ever. Luxury Car Tax exemptions do not seem to be on the table for FBT purposes.To further sweeten the deal, cars that qualify for the FBT exemption also get FBT-free running costs, including registration, insurance, maintenance, repairs, and even the electricity used for charging.However, installation costs for a home charging station aren’t exempt and would still attract FBT if covered by the employer.It’s worth noting that although your EV and charging costs are exempt from FBT, the benefit is still reportable. Calculating it is a matter of multiplying the total kilometres driven by the percentage of charging done at home, then applying the EV home charging rate of 4.20 cents per kilometre.If commercial charging is used, you should include those costs only if you can accurately determine the split between home and external charging.If you can separate the car from the artist, it’s still one of the best EVs out there – especially after a recent refresh that brought interior upgrades, a sleeker front-end design, and a quieter ride. Prices start at $54,900, before on-road costs, for the 2025 Model 3 RWD and rise to $80,900 for the full-fat Performance AWD (still well under FBT).Manufacturer: TeslaKey Specs: Up to 629km claimed WLTP range, RWD or AWDWarranty: four years/80,000 km (vehicle), eight years/160,000km (battery and drive unit)Why Consider It? Class-leading efficiency, Supercharger network, and an ultra-minimalist interior (which you’ll either love or tolerate).More Info: Tesla AustraliaHyundai’s retro-futuristic SUV is outrageously cool looking, with a thoughtful interior that’s put together with a real sense of purpose and quality. All but the $110,000 range-topping “N” variant meet the EV FBT threshold.Manufacturer: HyundaiKey Specs: Up to 570km claimed WLTP range, RWD or AWD, 800V fast-chargingWarranty: five years/unlimited kilometres (vehicle), eight years/160,000km (battery)Why Consider It? Retro-futuristic looks, roomy interior, and ultra-fast charging.Learn more: Hyundai AustraliaThe Polestar 2 carries that same left-of-centre intellectual appeal that Saab once enjoyed, with a Scandinavian design that pairs exceedingly well with turtlenecks and loafers.Manufacturer: PolestarKey Specs: Up to 655km WLTP range (long-range variant), RWD or AWDWarranty: five years/unlimited kilometres (vehicle), eight years/160,000km (battery)Why Consider It? Scandinavian design, premium materials, and concierge servicing.More Info: Polestar AustraliaThe BYD Atto 3 is an affordable EV that proves China is taking this whole electric car thing very seriously. The range kicks off at just $39,990, before on-roads, and is backed by a reassuring six-year/150,000km vehicle warranty.Manufacturer: BYDKey Specs: Up to 420km claimed WLTP range, FWD, 'Blade' battery technologyWarranty: Six years/150,000km (vehicle), eight years/160,000km (battery)Why Consider It? Competitive pricing, decent range, and a cool interior.More Info: BYD AustraliaThe best place to learn more about the exemption and any upcoming changes is the ATO website. There you’ll find answers to questions surrounding what cars are exempt from FBT, how does FBT work, and how much is FBT on a car.

Between towering import costs, dealer markups, and an archaic Luxury Car Tax (one still unmatched by a Luxury Boat Tax, Luxury Helicopter Tax or even Luxury Jewellery/Watch Tax), Australians have long shouldered some of the highest car prices in the world. Not for nothing to global brands laugh into their lobsters while referring to Australia as Treasure Island.

You are being watched. No, seriously, right now there's a device somewhere near you that is tracking you.

The new Audi Q5 might come as something of a non-electric shock after its bigger, sexier cousin, the Porsche Macan, went all electric. Audi will still sell you a Q5 with a choice of diesel and petrol engines, and even a shouty V6. It's quite probably the last of its kind, however, so it's kind of a big deal.

Between towering import costs, dealer markups, and an archaic Luxury Car Tax (one still unmatched by a Luxury Boat Tax, Luxury Helicopter Tax or even Luxury Jewellery/Watch Tax), Australians have long shouldered some of the highest car prices in the world. Not for nothing to global brands laugh into their lobsters while referring to Australia as Treasure Island.

Buying a car should be as simple as picking the one you like, paying the sticker price, and driving off with it. Maybe that’s how it works in some utopian parallel universe – one where street parking is always free – but in our reality, most window stickers are hiding a bureaucratic endurance test of extra taxes and fees that could give your budget a nasty whack.

How do you draw a car? Well, if you’re one of those annoying people with inherited and effortless artistic talent, you simply snap your fingers, grab a pencil and hey presto, a Lamborghini Countach.

So you want to import an American car from the USA to Australia? Well, why wouldn’t you? American cars have long loomed large in our Aussie imaginations, to the baffling point where many, many people used to replace the Holden badges on their Commodores with Chevrolet ones, so they could pretend they had one.

Can P-platers drive V8 cars? Literally and physically yes, and perhaps even if you have a time machine, yes, but in Australia, at this time, the answer depends on your age and where you got your provisional licence