Change is coming to Australia’s vehicle fleets from 2025 with the introduction of the Australian Government’s new vehicle fuel efficiency standards. Now before you let out a long, loud groan about government bureaucracy imposing all sorts of restrictions on business, just relax. Because this is good news for business that’s going to cut your running costs over the long term while reducing carbon emissions and aligning the nation with global sustainability goals.
Saving fuel
The logic behind the government’s measures is straightforward. When vehicles burn fuel they emit CO2 out of that tailpipe. When you reduce the amount of fuel they use, you reduce the amount of CO2 coming out. The new fuel efficiency standards will mandate stricter limits on fuel consumption, so carmakers will have to produce vehicles that use less fuel per kilometre, just as they do in every other developed county (except Russia).
That means that when it’s time to update your fleet you’ll get to choose from vehicles that use less fuel, giving you immediate fuel savings. Those savings will accumulate over time, particularly for businesses with large fleets, or those operating long-haul routes. That should be particularly reassuring at a time of global uncertainty and the ever-present threat of rising fuel prices.
EVs in particular are cheaper to maintain, with fewer moving parts, no need for oil changes, and less wear and tear on brakes, thanks to regenerative braking.
So more fuel-efficient vehicles add up to lower running costs – what’s not to like about that, eh?
Government incentives
The government wants you to buy more fuel-efficient vehicles. It’s offering tax breaks, rebates and credits to encourage you to buy hybrids, plug-in hybrids (PHEVs) and electric vehicles (EV). That means you’ll be saving money when you obtain your new vehicle, and saving money over its lifetime thanks to lower running costs.
When it comes to saving money, novated leases have always been a great option for employees and employers alike. Today, salary-packaging an EV makes even more sense, thanks to the government’s incentives like Fringe Benefits Tax exemptions and a higher Luxury Car Tax exemption. These are on top of state-based incentives like rebates, stamp duty and registration exemptions.
Corporate responsibility
In an era when Corporate Social Responsibility is increasingly important, adopting fuel-efficient vehicles is an excellent way to demonstrate your environmental leadership. Your customers are looking for businesses that put environmental sustainability first by aligning themselves with the fight against climate change. It’s also a great way to open doors to partnerships with similarly minded businesses.
Fuel-efficient fleets can help your business qualify for green certifications, adding value in bids for contracts, especially with governments or organizations that prioritise sustainability in procurement.
When you obtain fuel efficient vehicles for your business, you’ll also be well prepared for compliance with future environmental regulations when you’re already meeting or exceeding the 2025 standards.
With the increasing range of EVs, hybrids and PHEVs on today’s market you’re spoilt for choice. And with Fleetcare’s range of vehicle finance options, including operating leases, finance leases, hire purchase, novated leases, and more, you’re sure to find the perfect choice to carry your business forward into a profitable future.
To find out more about financing your business’s future fleet needs contact us today on 134 333.