E-bike novated lease solutions are a fantastic payment option for your next electric bicycle. An e-bike novated lease is like a car novated lease. Using salary packaging (also known as salary sacrifice) your employer withholds the lease payments from your salary during the lease term. The lease payments cover not only the financing of the bike but also the service and maintenance (based on the number of kilometres you expect to ride), roadside assistance (in Victoria) and possibly insurance against theft and damage.
Not just cars
In Australia, a novated lease is a popular way for employees to finance a car through a salary packaging arrangement with their employer. Essentially, it involves an agreement between three parties: the employee, the employer, and a finance company. The lease payments are deducted from the employee’s pre-tax salary, which can lead to tax savings. This is not tax advice, you must always confirm this with a tax professional.
As we know, electric bikes (e-bikes) have gained popularity as an alternative mode of transportation due to their environmental friendliness and cost-effectiveness. Some employers and finance companies have started offering novated leases for electric bikes as well.
ebike lease
With an electric bike novated lease, employees can use their pre-tax income to finance the purchase of an e-bike, along with associated costs such as insurance, maintenance, and accessories. This can result in savings on income tax, as well as potential savings on fuel and parking expenses compared to traditional car leases.
It’s worth noting that the availability and terms of electric bike novated leases may vary depending on the employer and the finance company. Employees interested in this option should inquire with their employer’s HR department to explore the feasibility and details of an electric bike novated lease. We can help make this happen so send us an email using the form on this page to start the process.
E-bike health benefits
Riding an electric bike can offer good health benefits. It’s not “cheating” like some car-loving people might suggest. It provides a low-impact form of exercise that helps improve cardiovascular health, stamina, and muscle strength, particularly in the legs and core. Additionally, it can be an excellent way to incorporate more physical activity into daily routines, leading to better overall fitness levels and potentially aiding in weight management. Plus, the mental health benefits of spending time outside and enjoying the freedom of cycling can’t be overlooked.
If you have human or animal passengers they will also find it more fun than sitting in a car, probably in a traffic jam and you’ll arrive at your destination invigorated and ready for the day instead of stiff and depressed from driving. Sure, some days it might be raining and cold but, gloves and a raincoat will be all you need.
Safe routes for cycling
If you live in a city you can find an alternative route to make your journey safer. First, consider using dedicated cycling maps or apps like Google Maps, which often include cycling routes with designated bike lanes and paths. Additionally, research local cycling user groups or websites for information on bike-friendly routes and infrastructure. When planning your route, prioritise roads with lower traffic volume and lower speeds, and be sure to familiarise yourself with local traffic laws and regulations for cyclists. Most states in Australia allow you to ride on the pavement when travelling with children which can help. Finally, consider factors like lighting, road surface conditions, and potential hazards such as intersections or blind spots when selecting your route. Do a practise run and be ready to change it up to avoid dangerous spots even if it means going a bit out of your way.
