EV Novated Lease
The Australian Government's FBT exemption means eligible battery electric vehicles leased through your employer attract $0 Fringe Benefits Tax — one of the most significant personal tax benefits available to Australian employees right now.
EV Lease makes it simple. One fixed monthly payment covers your car, insurance, registration, maintenance, and tyres. No surprises. No paperwork. Just drive.
What is a Novated Lease?
A novated lease is a three-way agreement between you (the employee), your employer, and EV Lease as the finance company. Your employer makes the lease payments directly from your pre-tax salary on your behalf — which reduces your taxable income and the amount of income tax you pay.
Unlike a car loan or buying outright, a novated lease bundles your vehicle finance, insurance, registration, servicing, and tyres into a single fixed monthly cost. You choose the car. EV Lease handles everything else.
If you change employers, the lease simply moves with you to your new employer — or reverts to you directly. The car is always yours to use.
The Big Benefit: $0 FBT on Electric Vehicles
This is why so many Australians are switching to EV novated leases right now.
Normally, when your employer provides you with a vehicle benefit, Fringe Benefits Tax (FBT) applies — and it significantly erodes the tax savings a novated lease would otherwise deliver. For a petrol or diesel car, you'd typically need to make employee contributions from your post-tax salary just to offset that FBT liability.
For eligible battery electric vehicles (BEVs), the government removed FBT entirely. No FBT means your full lease payments — finance, insurance, registration, maintenance, and charging costs — can be paid from your pre-tax salary. The result is substantially larger tax savings compared to leasing a petrol car or buying a car outright.
How much can you save?
Savings depend on your salary, the vehicle price, and your lease term. As a guide:
| Salary | EV Price | Estimated annual tax saving |
|---|---|---|
| $80,000 | $50,000 | ~$4,500 – $6,000 |
| $100,000 | $65,000 | ~$6,000 – $8,500 |
| $130,000+ | $75,000 | ~$8,000 – $11,000+ |
These are indicative figures only. Use our Lease Calculator or call us for a personalised quote.
Open Lease Calculator →Is Your EV Eligible for the FBT Exemption?
To qualify for $0 FBT, your vehicle must meet all of the following:
- Full Battery Electric Vehicle (BEV) — not a petrol hybrid or plug-in hybrid (PHEVs lost FBT eligibility from 1 April 2025)
- First held and used on or after 1 July 2022
- Priced below the Luxury Car Tax (LCT) threshold — currently $91,387 for the 2026–27 financial year
- Used by you (the employee) or your family
All vehicles in the EV Lease range have been selected to meet these criteria. When you enquire, we confirm FBT eligibility for your specific vehicle and configuration before you commit to anything.
Note on PHEVs: From 1 April 2025, plug-in hybrid electric vehicles no longer qualify for the FBT exemption unless they were on a binding novated lease arrangement before that date. If you're considering a PHEV, speak to us about your options.
Note on the exemption review: The Australian Government commenced a review of the EV FBT exemption in February 2026, with a report due by mid-2027. The exemption remains fully in place for BEVs today. Locking in a lease now means you benefit from the current rules for the duration of your lease term.
What's Included in Your EV Lease
Everything is bundled into one fixed monthly payment — paid from your pre-tax salary:
| Included | Details |
|---|---|
| Vehicle finance | Fixed monthly payments for the lease term |
| Comprehensive insurance | Fully managed, no excess on insurance repairs |
| Registration | Annual renewal handled by EV Lease |
| Servicing & maintenance | All scheduled servicing covered |
| Tyres | Replacement tyres included |
| Roadside assistance | 24/7 support Australia-wide |
| Replacement vehicle | Provided while your car is under repair |
| Charging costs | Can be included in your package |
How It Works — 4 Steps
Choose your EV
Browse our full range of FBT-exempt battery electric vehicles — Tesla, BYD, Kia, Hyundai, and more. Not sure which suits you? Our team will help you choose based on range, budget, and your driving habits.
Get your quote
We calculate your exact monthly payment, your estimated tax saving, and what the car will cost you compared to buying it outright. No obligation.
Approval & setup
Once you're happy, we work with your employer's payroll team to set up the salary packaging arrangement. Most employers accommodate novated leases — if yours doesn't currently, we can help facilitate the conversation.
Drive away
We pay the dealer, arrange delivery, and activate your insurance and roadside assist. You just drive.
Will a Novated Lease Suit Me?
A novated lease works well for you if:
- You're a permanent employee (full-time or part-time) on a regular salary
- You want a new or near-new car without a large upfront cost
- You want to reduce your income tax and take home more each month
- You want the simplicity of one fixed payment covering all vehicle costs
- You're open to driving an electric vehicle — which is where the biggest savings now sit
It's less suited to casual or contract workers without a consistent employer, or those who drive very low annual kilometres (under 8,000 km/year).
Tax implications of a Novated Lease
- Lease payments are deducted from pre-tax salary, reducing PAYG tax
- GST on the vehicle and running costs may be claimed by the employer
- Fringe Benefits Tax (FBT) may apply, but can be offset by employee contributions
- Employees may still claim work-related travel expenses if applicable