EV vs Petrol Total Cost of Ownership in Australia (2026)

The purchase price of an electric car is the number most people fixate on. But the purchase price is only one line in a five-year ownership cost. When you add fuel, servicing, tyres, insurance, registration, and depreciation — then factor in Australian tax benefits — the total cost picture often looks very different from the sticker price.

This is a complete, line-by-line total cost of ownership comparison between EVs and petrol cars in Australia. No cherry-picking. Every cost category included, with the numbers that work against EVs shown alongside the ones that work in their favour.

For the energy cost breakdown alone, see our cost per kilometre guide. For charging costs by tariff type, see our EV charging cost guide.

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The six cost categories

Total cost of ownership has six components. Some favour EVs, some favour petrol cars, and one — depreciation — is the largest single cost for both.

Category	EV advantage?
Fuel / energy	Yes — 60-80% cheaper per km
Servicing and maintenance	Yes — 40-60% cheaper annually
Insurance	No — $400-$800/year more expensive
Tyres	No — 15-25% faster wear, higher cost per tyre
Registration	Neutral — most state EV discounts have expired
Depreciation	Roughly equal — EVs have stabilised, but manufacturer price-cut risk remains

Tax benefits (FBT exemption, novated lease savings) sit on top of these and are covered separately because they only apply in certain circumstances.

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Fuel and energy — the clearest EV win

This is the cost category where EVs are unambiguously cheaper, and it is not close.

The numbers

Petrol car (mid-size SUV — Mazda CX-5, Hyundai Tucson petrol, Kia Sportage):

• Fuel consumption: 8.0-8.5 L/100 km (combined cycle)
• Petrol price: $2.00/L (long-run ULP average; spikes above $2.30 are common)
• Cost per km: 16-17 cents
• Annual cost at 15,000 km: $2,400-$2,550

Hybrid (Toyota RAV4 Hybrid, Hyundai Tucson Hybrid):

• Fuel consumption: 4.0-5.0 L/100 km
• Cost per km: 8-10 cents
• Annual cost at 15,000 km: $1,200-$1,500

EV (Tesla Model Y RWD, BYD Seal, Hyundai Ioniq 5):

• Energy consumption: 13-15 kWh/100 km
• Standard residential electricity: 33-35 c/kWh
• Cost per km: 4.5-5.3 cents
• Annual cost at 15,000 km: $680-$790

Charging scenario	Rate (c/kWh)	Cost per km	Annual cost (15,000 km)
Standard residential tariff	33-35	4.5-5.3c	$680-$790
Off-peak / controlled load	15-20	2.0-3.0c	$300-$450
Rooftop solar (self-consumed)	0-5	0-0.8c	$0-$110
Public DC fast charging	45-65	6.0-9.8c	$900-$1,470

Annual fuel saving (EV vs petrol at standard rates): $1,600-$1,850

Over 5 years: $8,000-$9,250 saved on fuel alone.

If you charge predominantly on off-peak or solar, the 5-year fuel saving climbs to $10,000-$12,000. The economics of off-peak charging are covered in our best electricity plan for EV owners guide.

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Servicing and maintenance — the quiet saving

EVs have fewer moving parts. No engine oil, no oil filter, no spark plugs, no timing belt, no clutch, no exhaust system, no transmission fluid. Regenerative braking means brake pads last roughly twice as long as on a petrol car.

What EV servicing actually involves

A typical EV service includes:

• Cabin air filter replacement
• Brake fluid check (replacement every 2-4 years)
• Tyre rotation
• Coolant check (battery thermal management system)
• Software updates
• Multi-point inspection

That is it. The service takes less time and costs less in labour.

The cost comparison

	EV	Petrol car
Annual servicing cost	$200-$400	$700-$1,200
Brake pad replacement (over 5 years)	Often zero (regen braking)	1-2 sets ($400-$800)
Major service items	Cabin filter, brake fluid, coolant	Oil + filter, spark plugs, transmission fluid, timing belt, air filter, fuel filter

Annual servicing saving: $400-$800

Over 5 years: $2,000-$4,000 saved on servicing.

Several manufacturers sweeten this further. Kia and Hyundai offer complimentary scheduled servicing for the first 5 years on many EV models. Tesla’s service intervals are minimal — the Model 3 owner’s manual does not prescribe a fixed service schedule at all.

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Insurance — where EVs cost more

This is the cost category that works against EVs, and it is significant enough that it cannot be glossed over.

Why EV insurance is higher

Comprehensive insurance on a mainstream EV averages $400-$800 per year more than an equivalent petrol car. The reasons:

• Specialist repair labour. High-voltage battery systems require accredited technicians. There are fewer of them, and they charge more.
• Parts availability. Many EV-specific parts (battery modules, drive units, charging components) are imported with longer lead times.
• Repair complexity. A minor front-end collision on an EV can trigger a battery inspection protocol that does not exist for petrol cars. Some insurers have written off EVs for damage that would be a straightforward repair on an ICE vehicle.
• Limited repairer networks. Fewer workshops are equipped for EV structural and electrical repair, reducing insurer competition.

The numbers

Vehicle type	Typical annual comprehensive premium
Mid-size petrol SUV (CX-5, Tucson)	$1,200-$1,600
Mid-size EV (Model Y, Ioniq 5)	$1,800-$2,400
Premium petrol SUV (BMW X3, Audi Q5)	$1,600-$2,200
Premium EV (BMW iX, Mercedes EQB)	$2,200-$3,000

Annual insurance penalty: $400-$800 more for an EV

Over 5 years: $2,000-$4,000 additional cost.

This gap is expected to narrow as more repairers become EV-accredited and parts supply chains mature. But in 2026, it is a real cost that partially offsets the fuel and servicing savings.

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Tyres — a smaller but real cost difference

EVs are heavier than equivalent petrol cars (battery packs weigh 400-600 kg) and deliver maximum torque from zero rpm. Both factors accelerate tyre wear.

The numbers

	EV	Petrol car
Average replacement tyre cost	$350-$420 per tyre	$200-$280 per tyre
Wear rate	15-25% faster than equivalent ICE	Baseline
Replacement interval (typical)	35,000-45,000 km	45,000-60,000 km
Annual tyre cost (amortised, 15,000 km/year)	$400-$550	$250-$350

Annual tyre penalty: $100-$200 more for an EV

Over 5 years: $500-$1,000 additional cost.

EV-specific tyres (lower rolling resistance, reinforced sidewalls for the extra weight) cost more per unit. However, the extended brake pad life from regenerative braking partially offsets this — budget roughly zero for brake pad replacement on an EV over 5 years versus $400-$800 on a petrol car.

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Registration — now roughly equal

Most state EV registration discounts have expired:

State	EV registration benefit	Status
ACT	Emissions-based rego — ZEVs get lowest rate	Active
NT	Registration fee waiver for new EVs (to June 2027)	Active
VIC	$100 discount was available	Ended January 2026
NSW	Stamp duty exemption was available	Ended January 2024
QLD	Zero Emission Vehicle Rebate Scheme	Ended September 2024
SA, WA, TAS	No current EV-specific rego benefit	—

For most Australian buyers in 2026, registration costs are effectively equal between EV and petrol — roughly $700-$1,000 per year depending on state and vehicle value.

5-year registration difference: approximately $0 (unless you are in ACT or NT).

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Depreciation — the biggest cost for both

Depreciation is the single largest ownership cost for any new car, EV or petrol. It dwarfs fuel, servicing, and insurance combined.

Where EVs stand in 2026

The “EVs depreciate like a rock” narrative was true in 2019-2022, when limited model choices, small batteries, and range anxiety suppressed used EV demand. It is much less true now.

Current 5-year depreciation benchmarks:

Vehicle	Purchase price	5-year residual (%)	5-year depreciation ($)
Tesla Model 3 RWD	$57,000	~57%	~$24,500
BYD Seal Premium	$52,000	~52%	~$25,000
Hyundai Ioniq 5	$72,000	~55%	~$32,400
Toyota RAV4 Hybrid	$48,000	~55%	~$21,600
Mazda CX-5 Touring	$42,000	~52%	~$20,200
Hyundai Tucson Petrol	$44,000	~50%	~$22,000

Key observations:

• Mainstream EVs are now depreciating at similar rates to equivalent petrol cars — roughly 35-45% over 5 years
• Tesla holds value well due to brand demand and the Supercharger network
• BYD residuals are stabilising as the brand becomes established in Australia
• LFP battery vehicles (Tesla Model 3/Y base, BYD Blade) command a slight used-market premium over NMC equivalents due to longer cycle life

The manufacturer price-cut risk

The one depreciation risk unique to EVs: manufacturers cutting new-car prices. When Tesla dropped Model Y pricing by $8,000-$13,000 in 2023, every existing owner’s vehicle lost value overnight. This does not typically happen with Toyota or Mazda. It is an industry-specific risk that EV buyers should acknowledge — though it has been less dramatic since 2024 as pricing has stabilised.

5-year depreciation difference: approximately $0-$5,000 — depends heavily on model choice. Not a clear winner either way.

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The complete 5-year comparison

Here is the full picture. Two matched comparisons: a mid-size SUV and a small sedan.

Comparison 1: Mid-size SUV — Tesla Model Y RWD vs Mazda CX-5 Touring

Assumptions: 15,000 km/year, standard residential electricity (35 c/kWh), ULP at $2.00/L, new purchase with cash (no novated lease).

Cost category	Tesla Model Y RWD	Mazda CX-5 Touring	Difference
Purchase price (drive-away)	$61,500	$42,500	EV costs $19,000 more
5-year fuel / energy	$3,650	$12,750	EV saves $9,100
5-year servicing	$1,500	$4,500	EV saves $3,000
5-year insurance	$10,500	$7,000	EV costs $3,500 more
5-year tyres	$2,250	$1,500	EV costs $750 more
5-year registration	$4,500	$4,000	EV costs $500 more
5-year depreciation	$26,500	$20,200	EV costs $6,300 more
Total 5-year cost	$110,400	$92,450	EV costs $17,950 more

On a straight cash purchase with no tax benefits, the Tesla Model Y costs roughly $18,000 more over 5 years than a CX-5 — driven by the higher purchase price and higher depreciation in dollar terms (even though the percentage is similar).

But this is before tax benefits. The comparison changes dramatically with a novated lease.

Comparison 2: Same vehicles — with a novated lease

Add the FBT exemption and pre-tax salary packaging on the Model Y (employee earning $120,000):

Adjustment	Value
FBT saving (5 years)	$28,900
Income tax saving on pre-tax lease payments (5 years)	$21,800
Total tax benefit	$50,700

Revised 5-year TCO with novated lease:

• Tesla Model Y: $110,400 − $50,700 = $59,700
• Mazda CX-5 (cash purchase): $92,450

The EV is now $32,750 cheaper over 5 years. The tax benefit more than reverses the purchase price disadvantage.

Use the FBT savings calculator to run your own numbers, or see the novated lease vs car loan comparison for a detailed cost model.

Comparison 3: Budget segment — BYD Atto 3 vs Hyundai Tucson

Cost category	BYD Atto 3 (EV)	Hyundai Tucson 2.0L Petrol	Difference
Purchase price (drive-away)	$45,000	$44,000	EV costs $1,000 more
5-year fuel / energy	$3,250	$12,000	EV saves $8,750
5-year servicing	$1,250	$4,000	EV saves $2,750
5-year insurance	$9,000	$6,500	EV costs $2,500 more
5-year tyres	$2,000	$1,400	EV costs $600 more
5-year registration	$4,000	$4,000	Equal
5-year depreciation	$21,600	$22,000	EV saves $400
Total 5-year cost	$86,100	$93,900	EV saves $7,800

At near-identical purchase prices, the BYD Atto 3 is $7,800 cheaper over 5 years than the Tucson petrol — even without any tax benefits. The fuel and servicing savings outweigh the insurance and tyre penalties.

With a novated lease at $120,000 salary, the Atto 3 saves an additional ~$40,000 in tax benefits, making the comparison overwhelmingly one-sided.

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The breakeven question — when does an EV pay for itself?

For buyers paying more upfront for an EV over an equivalent petrol car, the question is: how many years until the running cost savings cover the price gap?

Price premium paid for EV	Annual running cost saving (fuel + servicing − insurance − tyres)	Breakeven (years)
$5,000	$1,100	~4.5 years
$10,000	$1,100	~9 years
$15,000	$1,100	~13.5 years
$19,000	$1,100	~17 years
$5,000	$1,800 (off-peak/solar charging)	~2.8 years
$10,000	$1,800	~5.5 years
$19,000	$1,800	~10.5 years

Key takeaways:

• If the EV and petrol car cost roughly the same (BYD Atto 3 vs Tucson), the EV is cheaper from day one
• A $10,000 premium breaks even in 5-9 years depending on charging costs
• A $19,000 premium (Model Y vs CX-5) is hard to justify on running costs alone — you need the FBT exemption or predominantly solar/off-peak charging to make the economics work
• At current petrol prices above $2.20/L, all breakeven periods shorten by 20-30%

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How charging behaviour changes the equation

The single biggest variable in EV running costs is not the car — it is how and when you charge.

Charging method	Annual energy cost (15,000 km)	5-year saving vs petrol ($2,400/yr)
100% standard residential tariff	$750	$8,250
80% off-peak, 20% standard	$380	$10,100
70% solar, 30% off-peak	$120	$11,400
100% public DC fast charging	$1,200	$6,000

An EV owner with rooftop solar and a smart charger set to off-peak saves over $11,000 in energy over 5 years compared to petrol. An EV owner relying entirely on public fast charging saves only $6,000.

If you are installing a home charger, see our home EV charger guide. For optimising your electricity plan around EV charging, see the best electricity plans for EV owners.

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The hybrid complication

Hybrids (not plug-in, not electric — conventional self-charging hybrids like the Toyota RAV4 Hybrid) make the TCO comparison tighter.

Cost category	EV (Model Y)	Hybrid (RAV4 Hybrid)	Petrol (CX-5)
Purchase price	$61,500	$48,000	$42,500
5-year fuel / energy	$3,650	$6,000	$12,750
5-year servicing	$1,500	$3,500	$4,500
5-year insurance	$10,500	$7,500	$7,000
5-year tyres	$2,250	$1,600	$1,500
5-year registration	$4,500	$4,200	$4,000
5-year depreciation	$26,500	$21,600	$20,200
Total 5-year cost	$110,400	$92,400	$92,450

Without a novated lease, the hybrid matches the petrol car’s total cost while using half the fuel. The EV costs $18,000 more.

With a novated lease, the EV drops to ~$60,000 total — beating both by over $30,000. The FBT exemption only applies to BEVs, not hybrids. This is the key differentiator.

Bottom line: If you cannot access the FBT exemption and you charge at standard residential rates, a hybrid is the most cost-effective choice. If you can access the FBT exemption, the EV wins comprehensively.

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What the TCO comparison does not capture

Cost of ownership is not the only consideration. These factors do not appear in the numbers above but matter to many buyers:

• Driving experience. Instant torque, one-pedal driving, near-silence. These are subjective but consistently rank as the top reasons EV owners say they would not go back.
• Home charging convenience. Waking up to a full battery every morning versus stopping at a petrol station weekly. The time saving is real.
• Emissions. An EV on the Australian grid produces roughly 50-70% less CO2 than an equivalent petrol car. On rooftop solar, it is near zero.
• Resale uncertainty. While EV residuals are stabilising, the market is younger and less predictable than the petrol used-car market. Some buyers value the certainty of established resale patterns.
• Charging infrastructure. If you cannot charge at home (apartment, no off-street parking), the economics shift significantly toward public charging costs.

For apartment charging options, see our strata EV charging guide and apartment EV charger grants.

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The bottom line

If you can access the FBT exemption through a novated lease: An EV is cheaper to own than an equivalent petrol car by $20,000-$50,000 over 5 years, depending on your salary and vehicle price. The tax benefit alone covers the purchase price premium and then some. This is not even close.

If you are buying with cash at near-identical prices (e.g. Atto 3 vs Tucson): The EV saves $6,000-$10,000 over 5 years through lower fuel and servicing costs. The insurance and tyre penalties eat into the saving but do not eliminate it.

If you are paying a significant price premium for the EV (e.g. Model Y vs CX-5, cash purchase): The running cost savings may not fully offset the upfront cost within 5 years at standard electricity rates. You need off-peak or solar charging — or a longer ownership period — to break even on pure economics.

If you are deciding between an EV and a hybrid: Without the FBT exemption, a hybrid often matches the EV’s total cost at a lower purchase price. With the FBT exemption, the EV wins decisively.

For the federal tax benefits, see our FBT exemption guide and federal EV incentives overview. To model the novated lease savings, use the FBT savings calculator and novated lease calculator.

Sources: RACQ Vehicle Running Costs 2025, RACV EV Guide 2026, Electric Vehicle Council, ATO FBT guidance, AER Default Market Offer 2025-26, manufacturer pricing as at April 2026. Insurance estimates based on aggregated comparison data. Depreciation estimates based on Redbook, EVEvolution, and used-market data. All figures are estimates for illustration — individual costs vary by location, driving patterns, and insurer.