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.
