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EV Novated Leasing in Australia (2026)
If your employer offers salary packaging and you earn more than about $45,000, a novated lease on an eligible electric vehicle is the cheapest way to run a new car in Australia in 2026 - typically $10,000 to $25,000 cheaper over three years than buying the same car with cash or a loan. The whole saving comes from one rule: eligible battery EVs priced under $91,661 are exempt from Fringe Benefits Tax, so the car and its running costs come straight out of your pre-tax salary.
This hub is the map. Start with the complete guide, model your own numbers with the calculator, then dig into the pieces that matter for your situation - the best cars, the salary maths, and what still stacks state by state.
Timing matters: the exemption is being wound back
It runs in full until 31 March 2027, then EVs over $75,000 move to a 25% FBT discount, and from 1 April 2029 the full exemption ends for all. Existing leases are grandfathered, so a lease signed while the full exemption applies keeps it for its term. How the wind-down works →
Start here
Complete guideEV Novated Lease Australia: the complete 2026 guide
How it works end to end - eligible cars, charger bundling, providers, residual values, the reportable-benefit trap, and the step-by-step setup.
Read the full guide →Explore the topic
Savings by salary
Fortnightly take-home impact at $60k to $200k.
Novated lease vs car loan
The real-numbers comparison of both options.
Best EVs for a novated lease
Ranked picks by budget and range.
Best EVs for high-km drivers
Efficiency and warranty for big distances.
How the FBT exemption works
The tax rule that drives the whole saving.
EV rebates by state
What still stacks with a lease in each state.
FBT savings calculator
Model your FBT and income-tax saving.
Novated lease calculator
Compare lease vs buy on your own figures.
Estimate your saving
Enter your salary, the car's price and the lease term to see the FBT and income-tax components for your situation.
Your details
Used to calculate your marginal tax rate
Must be under $91,661 to qualify for FBT exemption
Your estimated savings
Annual FBT saving
$6,110
vs equivalent petrol car
Annual income tax saving
$4,659
from pre-tax lease payments
Total annual tax benefit
$10,769
How this works
- FBT saving = vehicle price × 20% (statutory rate) × 47% (FBT rate). For eligible EVs this is $0.
- Income tax saving = estimated annual pre-tax lease payment × your marginal income tax rate.
- Pre-tax lease payment estimated as vehicle price ÷ lease term × 1.12 (for interest and on-road costs).
- Eligible vehicles: BEVs and hydrogen fuel cell vehicles first held after 1 July 2022, drive-away price under $91,661 at first retail sale. PHEVs are NOT eligible from 1 April 2025.
- This is an estimate only. Get a novated lease quote from your employer's fleet provider for exact figures.
- The EV FBT exemption is being wound back: the full exemption runs until 31 March 2027, after which higher-priced EVs move to a 25% FBT discount. Leases signed while the full exemption applies are grandfathered for their term.
Frequently asked questions
- Is a novated lease worth it for an EV?
- For most salaried employees, yes. If your employer offers salary packaging and you earn above about $45,000, a novated lease on an eligible battery EV under $91,661 is usually $10,000 to $25,000 cheaper over three years than a cash or loan purchase, because the FBT exemption lets you pay the car and its running costs from pre-tax salary.
- Is a novated lease cheaper than buying an electric car outright?
- Usually. On a $65,000 EV at a $120,000 salary, a three-year novated lease is roughly $21,000 cheaper than a comparable car loan once the FBT exemption and pre-tax running costs are counted. Buying outright only wins if you cannot use the exemption, or you sell within about two years.
- Which EVs are eligible for the novated lease FBT exemption in 2026?
- Any battery electric or hydrogen vehicle with a drive-away price under $91,661, the 2026-27 luxury car tax threshold for fuel-efficient cars. That covers the Tesla Model 3 and Model Y RWD, BYD Atto 3, Seal and Dolphin, MG4, Hyundai Ioniq 5 and Kia EV6. Plug-in hybrids lost eligibility on 1 April 2025.
- Can I bundle a home EV charger into an EV novated lease?
- Yes. Every major provider (Maxxia, SG Fleet, SmartLeasing, Autopia) lets you fold a home charger, hardware and installation, into the lease as a vehicle accessory. The cost is spread across the term and paid from pre-tax salary. Typical caps are $2,500 to $5,000; anything above the cap is paid post-tax.
- What happens to my novated lease if I change jobs?
- The lease does not end. You can transfer the novation to a new employer that offers packaging, keep paying it personally at after-tax rates, refinance to a car loan, or pay out the balance. Most people transfer. Some providers charge a re-novation fee of about $200 to $500.
Written by
Marcus WebbSenior Energy Analyst
Marcus spent eight years as a solar and battery installer across Victoria and NSW before switching to full-time product testing and journalism. He has evaluated over 40 inverter and battery combinations in real Australian installs and writes to give households the numbers they need to make confident decisions - without the sales pitch.