Novated Leasing for Electric Vehicles (EV) Enquire now FIND MY EV At a glance: Novated leasing for electric vehicles Get an eligible EV through a novated lease and you could pay using 100% before-tax salary, potentially reducing your taxable income and saving more than with a petrol car. You can also bundle running costs into one simple regular payment, making budgeting and managing your car expenses easier. Drive an electric car for less with a novated lease For many Australians, novated leasing has become one of the more affordable ways to switch to an EV. Eligible EVs could unlock tax savings through the Australian Government’s Electric Car Discount allowing you to pay for your electric car using your before-tax salary, reduce running costs, and bundle most car expenses into one regular payment. Calculate My Savings How a novated lease for an electric vehicle works Eligible electric cars can be exempt from FBT For many Australians, novated leasing has become one of the more affordable ways to switch to an EV. This is the key reason EV novated leasing has become so popular. Normally, novated leases on petrol or diesel cars attract Fringe Benefits Tax (FBT), which can reduce the tax benefits. Eligible EVs are different Under the Australian Government’s Electric Car Discount, eligible electric vehicles can be exempt from FBT, helping increase the potential income tax savings available through salary packaging. That means: more of your payments can come from before-tax salary you could take home more each pay day the overall cost of driving an EV could become more affordable What is FBT? FBT stands for Fringe Benefits Tax. It’s a tax that employers normally pay when they provide certain benefits to employees outside of salary - including a car for personal use. With most petrol or diesel novated leases, FBT is usually built into the cost of the lease. This is why part of a standard novated lease is usually paid using after-tax salary to help offset the FBT. Under the Australian Government’s Electric Car Discount, many eligible EVs are exempt from FBT. That exemption is what helps create the larger savings available through an EV novated lease. What is the Australian Electric Car Discount? The Australian Government introduced the Electric Car Discount to encourage more people to switch to lower-emission cars. In simple terms: If an eligible EV is purchased through a novated lease, the car can be exempt from Fringe Benefits Tax (FBT). Normally, FBT is a major cost in salary packaging a car. Removing it can significantly reduce the total cost of the lease. Eligible electric vehicles generally include: Battery Electric Vehicles (BEVs) Hydrogen Fuel Cell Vehicles Some Plug-in Hybrid Vehicles (PHEVs) entered into before 1 April 2025 The car must also: First be held and used on or after 1 July 2022 Be below the Luxury Car Tax (LCT) threshold for fuel-efficient cars Be provided through an employer arrangement such as novated leasing Electric car vs petrol comparison Here’s how eligible EVs compare with traditional petrol cars through novated leasing. For example, if you’re earning $85,000 annually, living in Victoria, driving 15,000km per year over a 5-year novated lease: An electric car may have a higher upfront cost Yet your weekly cost could be similar to a petrol car The EV could deliver greater savings over the life of the lease Disclaimer: Income Tax savings are dependent on your taxable income and individual tax status. GST savings are dependent on your employer’s policy and accounting treatment of GST. Why more Australians are switching to EV novated leasing 1 Lower running costs 2 One regular payment 3 Access newer technology sooner Lower running costs Electric vehicles generally cost less to run than petrol cars. Many EV owners benefit from: cheaper charging compared to fuel lower servicing costs fewer maintenance items reduced day-to-day running costs One regular payment Instead of managing multiple bills throughout the year, most vehicle costs can be combined into one scheduled payment. That can include: finance repayments registration insurance servicing tyres roadside assistance charging budgets Access newer technology sooner Many drivers are using novated leasing to move into newer cars with: advanced safety features improved driving range connected technology lower emissions without paying the full purchase price upfront. Transparency matters Some salary packaged cars may still impact income-tested obligations or government assessments, including: HELP/HECS repayments Child Care Subsidy calculations other government entitlements Understanding the full picture upfront is important when deciding whether novated leasing is right for you. Why choose Fleetcare for your EV novated lease? Clear advice without the jargon We focus on making EV novated leasing easy to understand. That means: simple explanations transparent cost breakdowns support choosing an eligible EV guidance through the full process help understanding your options No complicated finance language. No confusing tax terminology. Just practical support to help you decide if an EV novated lease suits your needs. Ready to see how much you could save? Explore eligible electric vehicles and estimate your potential savings today. Showroom Deals Browse our latest novated lease electric vehicle deals. Novated Lease Calculator Get a realistic idea of how much you could save. Webinars Register for an upcoming webinar and get expert insights on novated leasing. Car Reviews Compare models and choose with confidence. Electric vehicle novated lease FAQs How do I claim charging costs? You have two options: Shortcut method: Claim a set rate per kilometre with minimal paperwork Invoice method: Claim the actual cost of charging by providing receipts You can only use one method per FBT year. Fleetcare can help you decide which option suits your situation. Note: Charging costs are not GST-exempt under a novated lease. However, the purchase and installation of a home charger may be GST-exempt. Are EVs on a novated lease eligible for state incentives? Yes. Electric vehicles financed through a novated lease may also be eligible for state-based rebates and incentives, depending on your location. Can I include a home charger in my lease? The purchase and installation of a home charger are not typically included in the lease and need to be arranged separately. How do EV running costs compare to petrol or diesel? Electric vehicles still have costs such as: Registration Maintenance Tyres However, they typically cost less to service and run compared to petrol or diesel cars. Do I need to include electricity costs in my lease? It is not mandatory, but including electricity costs in your budget may help you: Manage your expenses more effectively Access potential GST savings where applicable For more novated leasing FAQs, visit our frequently asked questions page. Enquire now Talk to a novated leasing specialist about electric vehicles Want to find out how an EV novated lease could work for you? Speak to Fleetcare today and explore your options. First Name Last Name Email Phone Company State ACT NSW NT QLD SA TAS VIC WA Message By submitting this form, I consent to be contacted by Fleetcare about their products, services, and offerings. Fleetcare will manage my information in accordance with their Privacy Policy. Verification Failed. Submit enquiry 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. Home/ Novated Leasing / Electric Car