As you may be aware, the Government recently announced that Australia’s Electric Car Discount (ECD) will continue, helping to keep electric vehicles (EVs) accessible for all Australians.

What is the Electric Car Discount?

Australia’s shift to EVs has increased substantially in recent years.

One of the most significant drivers has been the Electric Car Discount, which removes fringe benefits tax (FBT) on eligible EVs provided through novated leasing. Since its introduction in 2022, uptake of the Electric Car Discount has exceeded expectations, helping to drive EV adoption as a cleaner alternative to petrol cars, while simultaneously enabling meaningful savings on fuel, running costs and overall ownership.

What’s changed?

Under the Government’s recent review, the Electric Car Discount will be updated in three phases:

• Until March 2027: The current discount will apply and continue to provide FBT exemption for eligible EVs under the Luxury Car Tax threshold ($91,387).
• April 2027 to April 2029: The full discount will only apply to EVs priced $75,000 and under, while EVs above that (but below the luxury car tax threshold) will receive a 25% FBT discount.
• From April 2029: All eligible EVs below the luxury car tax threshold will receive a 25% FBT discount.

Notably, eligible EVs will continue to be exempt from import tariffs, helping keep prices competitive as the market grows.

Why choose a novated lease for your EV?

A novated lease remains one of the most cost-effective and convenient ways to drive an EV. Customers can take advantage of a range of financial, environmental and lifestyle benefits, including:

• Environmental and technological advantages: Experience zero‑emission driving while enjoying the latest in EV innovation, safety and performance.
• Potential tax savings: Maximise your savings with no GST on purchase price or running costs. Payments made using a mix of pre-tax and post-tax salary contributions may also help to reduce taxable income overall.
• Bundle vehicle expenses: Combine items such as charging, servicing, insurance and registration into one simple payment, making budgeting easier and reducing admin.

Learn more on how to novate your EV here: EV Novated Lease Australia | SG Fleet AU