If you drive an electric car on a novated lease, you could be eligible to claim back charging costs. I’m sure like most people the idea of claiming tax benefits and filling out paperwork leaves a shiver running down your spine, but it’s actually simple and easy to understand.
The ATO allows two different methods for EV charging reimbursement, and which one you choose depends on how and where you charge your car. In this guide, we break down how each method works, who it suits, and what you’ll need to get started.
Two Methods, One Choice per FBT Year
You can only use one method per Fringe Benefits Tax (FBT) year, which runs from 1 April to 31 March. So it’s important to choose the option that best reflects your charging habits—whether that’s mostly at home, mostly public, or a mix.
Option 1: The Shortcut Method (4.2c per km)
If you mostly charge at home and don’t have a dedicated EV charger or a separate electricity meter, this method is likely your best bet.
- How it works: The ATO allows you to claim 4.2 cents per kilometre to cover your home charging costs.
- No need for invoices or electricity meter readings.
- You simply track how many kilometres you’ve driven during the FBT year and multiply that by $0.042.
For example:
If you drive 12,000 km, your claim would be $504 (12,000 x 0.042).
- When it’s paid: The total amount is paid into your bank account as part of your regular novated lease claim process—usually at the end of the FBT year. You can claim throughout the year via our reimbursement process, you will need to provide photo proof of your EV vehicles odometer reading.
This method is designed to keep things simple, especially for people without fancy EV charging setups.
Option 2: The Invoice Method (Actual Charging Costs)
If you regularly charge on the go or via destination charging this method might offer better value.
- How it works: You claim actual electricity costs from:
- Public charging stations (e.g. Chargefox, Evie, Tesla
- Home charging that’s tracked via a smart meter or separate circuit
- You’ll need to keep your receipts or invoices.
- You can submit claims throughout the year, and the money is reimbursed directly into your bank account.
This method can take a little more admin, but it may give you a more accurate—and potentially higher—reimbursement, especially if you’re charging on the go.
Which One Should You Choose?
Here’s a quick summary:
| Feature |
Shortcut Method |
Invoice Method |
| Claim Type |
Flat rate (4.2c per km) |
Actual charging costs |
| Paperwork Required |
Minimal |
Charging invoices/receipts |
| Charging Type Supported |
Home charging only |
Home + Public charging |
| Best For |
Simplicity lovers |
Detail-oriented drivers |
Still not sure? The Fleetcare team can help you decide which method suits your situation.
A Few Extra Tips
- You can’t switch methods partway through the FBT year. Once you choose, you’re locked in for that period. But you can switch between FBT years. To switch you will need to reach out to Fleetcare’s novated Account Management team to adjust the budgets within your lease appropriately.
- Claims are only available to eligible electric vehicles—hybrids and PHEVs don’t qualify.
- You can’t include the cost of a home charger or charging cable in your novated lease, unless the cable comes standard with the car.
Need Help with Your Claim?
Fleetcare makes the process simple. Whether you’re using the shortcut method or tracking public charging invoices, our team is here to support you. If you’re not sure where to start, just reach out—we’ll help you get it sorted before the end of the FBT year.
📞 Call us on 134 333
🌐 Visit fleetcare.com.au/novated-leasing