As Australia accelerates its shift toward greener transportation, electric vehicles (EVs) are becoming more accessible—not just through better models, but also via government-backed incentives. If you’re considering an EV, especially under a novated lease, now is a great time to explore how federal and state benefits can significantly cut down your costs.
Here’s everything you need to know.
Federal Government Incentives
Fringe Benefits Tax (FBT) Exemption for Eligible EVs
One of the biggest perks for EV drivers is the FBT exemption—particularly valuable for novated leases.
- Applies to battery electric vehicles (BEVs), and hydrogen fuel cell EVs (FCEVs)
- The exemption removes the FBT liability on private use, making novated leasing significantly more affordable
Why this matters: If you’re novating leasing an EV through your employer, this exemption means lower overall lease costs and more take-home pay.
Increased Depreciation Limit for Businesses
Businesses can benefit from instant asset write-offs for eligible EVs.
- Applies if the EV is under the LCT threshold
- Supports better cash flow and encourages switching to EV fleets
State and Territory Government Incentives
Beyond federal support, many states and territories offer additional EV benefits:
- Rebates for New EV Purchases – Offered in states like Queensland and Western Australia
- Stamp Duty Exemptions – Full or partial exemptions available in select states
- Discounted Registration Fees – Some states offer lower ongoing registration costs for EVs
Infrastructure Investment – Increased access to public EV charging stations for convenience and range confidence
How Novated Leases Benefit from These Incentives
A novated lease allows you to pay for your vehicle using pre-tax income. When paired with EV-specific government incentives, the cost savings become even more substantial:
- FBT exemption delivers significant savings on your lease
- GST savings apply to lease payments and running costs
- Your taxable income is reduced through salary packaging
- State-level incentives reduce your upfront and ongoing expenses even further
Example: What It Looks Like in Practice
Let’s say you lease an EV under a novated agreement:
- Without incentives, FBT would apply to your personal use of the vehicle
- With the exemption, that FBT is exempted—resulting in thousands of dollars in savings over the lease term
- Additional state-level perks, like a rebate or lower stamp duty, can enhance your savings even more
Key Takeaways
- The FBT exemption is the most impactful incentive for EVs under novated leases
- State-based incentives such as rebates, stamp duty exemptions, and discounted registration amplify your savings
- Novated leasing with an EV is not only environmentally friendly but also financially smart
Let Fingo Finance Help You Maximise Your Savings
At Fingo Finance, we specialise in novated leases that take full advantage of Australia’s EV tax benefits, including exclusive BYD discounts. Whether you’re evaluating your options or ready to move forward, we’re here to help you make the most informed and cost-effective decision.
Contact us today to find the best EV for your needs and maximise your tax savings.