Novated Leasing for Electric Vehicles (EV)

Q: How do I claim charging costs on an EV novated lease?

You have two options for claiming your car charging costs: Shortcut method – Claim 4.2 cents per kilometre with minimal paperwork required. Invoice method – Claim the actual cost of charging at home or public stations by providing receipts.You can only use one method per FBT year, and Fleetcare can assist you in deciding which option is best for your situation.Note: Charging costs themselves are not GST-exempt under a novated lease. However, the purchase and installation of a home charger are GST-exempt.

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Make the switch to electric!

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The switch to electric cars is well and truly underway, with more Australians leaving petrol behind for a quieter, cleaner drive. Whether it’s the environmental perks or the savings that grab your attention, there’s never been a better time to go electric — especially with the Electric Car Discount on your side.

With a novated lease, you can package the cost of an eligible EV — along with running costs like servicing and tyres — into one regular 100% before-tax payment. That means potential tax savings and fewer budgeting headaches, all while driving the latest tech on four wheels.

What is the Electric Car Discount?

The Electric Car Discount is a government incentive that makes eligible electric cars even more appealing when salary packaged through a novated lease. It works by removing Fringe Benefits Tax (FBT) on eligible EVs under the luxury car tax threshold — meaning your lease payments are 100% before-tax.

Here’s how that plays out:

Let’s say you’re earning $85,000 annually, living in Victoria, driving 15,000km a year, over a 5-year novated lease. You compare two options.

Even thought the electric car costs over $30,000 more upfront, your weekly payment is roughly the same, — and the EV could save you an extra $17,230 over the life of the lease. That's the power of the Electric Car Discount and before-tax packaging.

Novated lease comparison between petrol and electric vehicle costs

Why go electric?

Reduced running costs

Reduced maintenance costs

Reduced emissions

Available EV Incentives

Reduced running costs

Electric cars are a lot cheaper to run — we’re talking potential fuel savings of up to 70% compared to petrol or diesel.

Charging costs are typically much lower than filling up at the pump, and electricity prices tend to stay more stable over time (no overnight price hikes here).

Your exact savings will depend on your car’s battery size, your electricity rates, and how often you drive — but in most cases, charging costs far less than refuelling. That’s good news for your budget and your peace of mind.

Reduced maintenance costs

Electric cars don’t just save on fuel — they’re cheaper to maintain, too.

With fewer moving parts than petrol or diesel cars, EVs need less frequent servicing and fewer repairs. That means fewer trips to the mechanic and more money in your pocket.

No oil changes, no spark plugs, and fewer things to go wrong. Just smooth, simple driving.

Reduced emissions

Driving an EV is a big win for the environment. With no tailpipe emissions, they help cut down on harmful air pollution and reduce your carbon footprint every time you hit the road.

Want to go even greener? Pair your EV with solar power at home and you could reduce your emissions even further — all while keeping your running costs down.

Available EV Incentives

Looking to make the switch? The Electric Car Discount is one of several Government incentives making EVs more affordable for Australians.

From stamp duty exemptions to registration discounts and the ability to pay with before-tax income through novated leasing, there’s never been a better time to go electric. These incentives vary by state, but all help bring the upfront and running costs down — making EVs more accessible than ever.

For more information, visit our Federal and State based electric vehicle incentive guide.

EV Frequently Asked Questions
To help you understand if a novated lease is right for you, we've answered our most common questions. For more FAQ’s, visit our frequently asked questions page.

How do I claim charging costs on an EV novated lease?

You have two options for claiming your car charging costs:

Shortcut method – Claim 4.2 cents per kilometre with minimal paperwork required.
Invoice method – Claim the actual cost of charging at home or public stations by providing receipts.

You can only use one method per FBT year, and Fleetcare can assist you in deciding which option is best for your situation.

Note: Charging costs themselves are not GST-exempt under a novated lease. However, the purchase and installation of a home charger are GST-exempt.

Will an electric car procured through a novated lease also be eligible for state-based EV rebates and incentives?

Yes. Electric vehicles leased through a novated lease may also be eligible for state-based EV rebates and incentives, helping to lower the overall cost of ownership. We can guide you on your eligibility and explain what’s available in your state.

Can I include the installation of a wall charger at my home?

Unfortunately, you cannot include the costs and installation of a wall charger in the lease, this needs to be separate from the lease.

How do electric vehicle running costs compare to a petrol or diesel novated lease?

While you won’t have petrol expenses, electric cars still incur costs such as registration, maintenance, and tyres - all of which are included in your novated lease budget. The upside? EVs typically cost less to service and repair than petrol or diesel cars, so your overall running costs may be lower over the life of the lease.

Do I have to include electricity expenses in my budget?

It’s not mandatory to include electricity costs for EVs in your budgets, however, incorporating them could be beneficial, as it allows you to take advantage of potential GST savings.

Benefits of salary packaging your car

Potential tax savings: Pay for your car and running costs using some (or all) of your before-tax salary — depending on the car you choose, this could lower your taxable income.

Fleet discounts: Thanks to our national buying power, you get access to great discounts on new cars.

Save on GST: You could save GST on the car’s purchase price and running costs over the lease term — depending on your employer’s setup.

Budget convenience: One regular payment bundles your finance and running costs like rego, insurance, fuel or charging, maintenance, tyres, and roadside assist.

24/7 driver support: Round-the-clock support when you need it — we’re always here to help.

Banner promoting novated lease offers for electric vehicles

Want to find out more?

Frequently Asked Questions To help you understand if a novated lease is right for you, we've answered our most common questions. Register for a Webinar Join us for live webinar where we answer your questions about novated leasing. Car Reviews We test, rate and review the latest cars so you can choose with confidence.

Want to know more about novating an electric car?

Important Information: The information provided is for general informational purposes only and does not take into account your specific needs, circumstances, or objectives. It is strongly recommended that you consult with a qualified financial advisor before making any decisions based on this information. Fees, conditions, eligibility and credit approval criteria may apply.

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