Small business bottom line in buying EV for business purposes
is closer to that of the ICE because:
-small business can write off the purchase in 1 year
-small business can claim car GST to offset normal GST obligations
So say an EV cost $70K & its equivalent ICE costs $50K ...that a capital cost difference of $20K
After tax washout the:
-ICE will cost (50K /11 GST = $4445 or net $45,555)
now take the 25% corporate tax exemption at 25% ...thats net $34,166
Now lets look at the EV costing $70K
GST offset: $4900 of net after GST exemption = $65,100
Corporation tax offset at 25% = $16,275 or net car cost after tax concessions = $48,825
This give a post tax difference between the EV & the ICE of $14,659 (not $20K)
Now lets consider my neighbours EV which costs him $18 a week for charging vs his former
equivalent sized ICE which cost him $105/week that's a saving of $87/week.
So it will take 168 weeks or just over 3 years to break even assuming that:
-depreciation, R&M (lower on EV) insurance (higher on EV) pan out as being equal.
Assumption: that the ICE engine services (2xyear) costs $600 and brakes on the EV lasts twice as long as the ICE
and that this offsets the insurance difference.
PS: With the Euro 5 being introduced in 2025, depreciation on ICEs will likely outpace that on EVs IMO.
- Forums
- Political Debate
- Hybrids Vs PHEVs vs All Electric
Small business bottom line in buying EV for business purposes is...
-
- There are more pages in this discussion • 132 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)