EV novated leasing: the biggest tax break on wheels.
Eligible electric vehicles are exempt from Fringe Benefits Tax — which means the entire lease can usually be paid from pre-tax salary. No other salary packaging benefit comes close.
Why are EVs FBT-exempt?
Under the Federal Government's Electric Car Discount, eligible battery-electric vehicles priced under the luxury car tax threshold for fuel-efficient cars are exempt from Fringe Benefits Tax when provided through a novated lease.
100% pre-tax
With no FBT to offset, there is no post-tax (ECM) contribution — the whole payment reduces your taxable income.
Cheap to run
Charging costs a fraction of petrol, and EVs need less servicing — savings bundled straight into the lease.
GST savings too
The usual novated GST savings on purchase price and running costs still apply on top of the FBT exemption.
EV vs petrol: an indicative comparison
For an employee on $95,000 leasing a $55,000 car over 4 years, 15,000 km per year:
Indicative only — not financial advice. Eligibility and savings depend on the vehicle, your salary, financier rates and current legislation. Run your own numbers →