In May 2026, the Federal Treasury released its statutory review of the Electric Car Discount — the policy that, since 2022, has made electric vehicles dramatically more affordable for Australians using a novated lease. The review's headline finding was clear: the policy worked. EV sales tripled. Prices fell. Charging infrastructure grew. Tens of thousands of additional EVs ended up on Australian roads.
The review's other finding was equally clear: the cost is climbing, and the policy will be phased down. Treasury didn't recommend an abrupt cut. They specifically warned against the New Zealand approach, where EV sales collapsed after a sudden withdrawal. They recommended a graduated transition, with predictable signals and time for the market to adjust.
The exact timing of any change has not been announced. But the direction is set, and the window of opportunity has a horizon.
This has prompted a lot of conversation about how households can think about their EV decision in the context of changing policy — particularly the question of what happens at the end of a current-rules lease, when the rules might be different.
One framework that's gaining attention is what we've been calling the double lease structure. The mechanic is straightforward.
A novated lease today, structured to end on or around 1 March 2029, locks in current FBT treatment for the life of that lease. (Existing leases are grandfathered — this is a long-standing principle in Australian tax law, and Treasury's review explicitly confirmed it.) At the end of that lease, there's a residual value — set by the ATO based on lease term — which can either be paid out, refinanced, or rolled into a new lease.
The double lease idea is to refinance that residual into a fresh five-year novated lease. Even if the FBT exemption has been modified or removed by then, the financed amount is much smaller because the car has depreciated, so the monthly cost is naturally lower. Combined across both leases, you have a structured eight-to-ten year ownership plan, with the most expensive years of the car protected by today's most generous tax treatment.
Whether this approach makes sense for any individual depends entirely on their circumstances — their employer's salary packaging arrangements, their income, their tax position, the vehicle they're considering, and their longer-term plans. None of that can be answered by an article. It can only be answered by running your own numbers and talking to a qualified novated lease consultant.
This is exactly why we built the Double Lease Calculator.
It's a free, no-sign-up tool that takes about 90 seconds. You enter your salary, your state, the vehicle you're considering, and your expected delivery date. It shows you the full eight-to-ten year picture across three different policy scenarios — the optimistic case where the ECD continues, the conservative case where it's removed entirely, and a phased middle case. You can compare them. You can change variables. You can see how delivery timing affects the math.
It's a planning tool, not advice. It's designed to help Australians have informed conversations with their HR teams, their accountants, and their lease consultants — the people who can actually advise on individual situations.
The bigger picture matters too. Every novated EV lease today is a car that eventually enters the second-hand market. Treasury data shows used EV sales are growing fast — from 0.7% of the second-hand market in 2023 to 1.5% in 2025. That's how EVs become accessible to households that can't afford a new car. Today's lease is tomorrow's affordable used EV. The transition the policy was designed to accelerate happens through ordinary people making informed decisions about their own situations.
The window is open. Treasury hasn't told us exactly when it closes. But for the first time, there's a tool that lets you see what your eight-year plan could look like — clearly, transparently, and on your own terms.
Try the Double Lease Calculator →
This article is general information only. It does not take into account your personal financial situation, objectives, or needs. Tax outcomes vary significantly based on individual circumstances. Before making any decision about a novated lease, speak to a qualified novated lease consultant, your employer's HR team, and your accountant. The calculator referenced is a planning tool that produces illustrative projections only.