ACT Expands Low-Interest EV Loans — What It Means for You
The ACT has expanded its low-interest loan scheme for EVs and added electric cargo bikes. Here's what Canberra-based employees should know. Read more.
The ACT government has quietly expanded one of Australia's more practical EV incentive programs. According to The Driven, the scheme now offers larger low-interest loans for electric vehicles and home appliances — and has added electric cargo bikes to the eligible product list for the first time.
If you live or work in the ACT, this is worth paying attention to. It's a direct subsidy on the cost of borrowing, which is a different lever to the federal FBT exemption — and the two can potentially work alongside each other.
What this means for novated lease customers
Novated leasing and the ACT's low-interest loan scheme are not the same thing — and they're not in competition. A novated lease runs through your employer and reduces your taxable income via pre-tax salary deductions. The ACT loan scheme is a direct consumer loan at a subsidised interest rate.
Where it gets interesting: if you're an ACT-based PAYG employee considering an EV, the federal FBT exemption for eligible battery electric vehicles already makes novated leasing unusually attractive. The ACT expansion adds another tool to the toolbox — particularly for people whose employer doesn't offer salary packaging, or for purchases like electric cargo bikes that fall outside a standard novated lease.
For eligible EVs, a novated lease still tends to deliver more significant potential savings than a standalone low-interest loan, because the pre-tax treatment compounds across the life of the lease. But your mileage — quite literally — will vary based on your income, the vehicle, and your employer's packaging rules. Worth modelling both options before you decide.
Common questions
Can I combine the ACT low-interest loan with a novated lease?
Generally no — a novated lease is a separate finance product structured through your employer, and you can't typically layer a government loan on top of it for the same vehicle. They're alternative paths to the same destination. If you're unsure which suits your situation, that's exactly the conversation to have with a broker.
Are electric cargo bikes eligible for novated leasing?
This depends on how the bike is classified and your employer's salary packaging policy. Cargo bikes don't automatically qualify under the FBT exemption that applies to battery electric cars — speak to a licensed provider before assuming the same tax treatment applies.
Does the ACT scheme apply if I work in Canberra but live in NSW?
Eligibility criteria for the ACT scheme are set by the ACT government and typically apply to ACT residents. Check the scheme's official terms directly — residency vs. workplace location is a common sticking point.
Is the federal FBT exemption for EVs still in place?
As of the date of this article, the FBT exemption for eligible battery electric vehicles under the Fringe Benefits Tax Assessment Act remains in place. Always confirm current eligibility with a licensed provider, as policy can change.
Who is millarX and are you licensed to give this advice?
millarX is an Australian novated leasing provider operating under ACL 569484, a member of FBAA and AFCA, and Westpac's #1 ranked novated broker. This page is general information only — not personal financial advice. For advice specific to your situation, get in touch.