The 2025 guide to EV novated leasing in Australia
Everything that's changed since the FBT exemption – which cars qualify, what the luxury car limit really means, and the four mistakes we see people make.
The 30-second version
- EVs under $91,387 are FBT-exempt under the federal exemption (FY25).
- That makes 'tax savings ≈ real savings' on EVs in a way it isn't on petrol cars.
- Most popular pick in 2025: Model Y, BYD Sealion 6, Kia EV5.
- The four mistakes: ignoring the LCT, over-spec'ing, under-estimating kms, skipping insurance comparison.
What the FBT exemption actually does
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- Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
- Consectetur adipiscing elit
- Quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat
- Ut enim ad minim veniam
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The four mistakes we see all the time
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John Smith Employment Position
See what your dream car could cost you per payslip
Try the numbers on a Model Y at your income.
The questions everyone has.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
Plain-English answer here, two or three short paragraphs. Avoids hedging, uses real numbers, qualifies in fine print rather than mid-sentence.
H2 headline example
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
Right – now run the numbers for your situation.
This article was about understanding the maths. The next sensible step: see what an EV looks like on the timeline.
Electric Car Discount Changes 2026: What It Means for Your EV Novated Lease
The Electric Car Discount is staying. Here's what's changing from 2027, what stays the same, and how a novated lease on an electric vehicle still stacks up.
How Do You Calculate Novated Lease FBT?
How FBT on a novated lease is calculated with the statutory formula or operating cost method, and how the employee contribution method offsets it.
FBT Exemptions for Plug-In Hybrid Electric Vehicles Are Changing – Here’s What You Need to Know
Plug-in hybrids stopped qualifying for the FBT exemption from 1 April 2025. Who could keep the exemption, and the lease changes that can end it.
Common misconceptions around residual values and novated leasing?
Common misconceptions about residual values on a novated lease, including who owns the car, selling it, and your options as the lease term ends.
What happens at the end of a novated lease
Your options when a novated lease ends, whether you refinance and keep the car, trade it in for a new one, or pay out the residual and own it.
Should You Get an Electric Car Lease?
Things to know before leasing an EV, including home and public charging, claiming electricity costs, driving range and common concerns about switching.
Can I buy a used car with a Novated Lease and start saving thousands?
Yes, you can novate a used car. How a novated lease works on a used vehicle from a dealer or private seller, or on a car you already own.
What items can I claim on my novated lease?
The costs you can include in a novated lease budget, from finance, rego and insurance to servicing, tyres, roadside assistance and car detailing.
What happens with my car lease if I change my job?
What happens to your novated lease when you change jobs, your options to transfer, convert or pay it out, and what to consider before you make the move.
