TL;DR
The Electric Car Discount is currently under review, with potential changes expected in the May 2026 Federal Budget.
This incentive has helped many Australians access electric cars through a novated lease and reduce their day-to-day driving costs.
If you’ve already made the switch, or are considering it, now is the time to understand what’s happening and how you can have your say.
Help Australia Keep the Electric Car Discount
If you’ve been thinking about getting an electric car through a novated lease, or already have one, there’s an important update you should know about.
The Australian Government is currently reviewing the Electric Car Discount, with outcomes expected in the May 2026 Federal Budget.
While nothing has been confirmed yet, changes to the policy are being considered — and the next few weeks could play a key role in shaping what happens next.
What is the Electric Car Discount?
The Electric Car Discount allows eligible electric cars to be financed through a novated lease using before-tax income, without incurring Fringe Benefits Tax (FBT).
In simple terms, it’s what makes electric cars more accessible for everyday Australians through salary packaging.
It has played a major role in:
- Reducing the upfront and ongoing cost of getting an EV
- Supporting more people to make the switch
- Making electric cars a realistic option, not just a premium one
Why is it under review?
The Government is currently conducting a statutory review of the Electric Car Discount, with decisions expected as part of the upcoming Federal Budget.
At the same time, industry bodies and stakeholders are actively engaging with government to ensure the full impact of the policy is considered before any changes are made.
The key point is:
No final decision has been made yet.
Why this matters for everyday Australians
For many Australians, transport is one of the biggest weekly expenses.
The Electric Car Discount has helped reduce that pressure by making electric cars more affordable to run and finance through a novated lease.
Without it, the cost of getting into an EV could increase significantly, particularly for those relying on salary packaging to make the numbers work.
This isn’t just about policy — it’s about:
- Cost of living
- Access to more efficient cars
- Long-term running cost savings
What happens next?
A decision is expected in the May 2026 Federal Budget.
That means there is a limited window for industry, businesses and individuals to:
- Share their experiences
- Highlight the real-world benefits
- Ensure decision-makers understand the impact
As noted by industry stakeholders, there are only a few weeks to influence the outcome before decisions are finalised.
How you can have your say
If the Electric Car Discount has made a difference to you, or if you’re considering an EV, there are simple ways to get involved.
You can:
- Learn more about the campaign at KeepEV.com.au
- Take action using the easy template provided by KeepEV to contact your local MP to express your view
- Help raise awareness within your network
Even small actions can contribute to a broader conversation.
Final thoughts
The Electric Car Discount has played a key role in making electric cars more accessible for Australian employees.
With the policy now under review, the coming weeks are important.
Whether you’ve already made the switch or are still considering it, staying informed and having your say could help shape what happens next.