ACT Expands Its Low-Interest EV Loan Scheme — What You Need to Know
The ACT has expanded its low-interest loan scheme for EVs and added electric cargo bikes. Here's what it means if you're considering a novated lease in Canberra.
The Australian Capital Territory has quietly expanded one of the more practical EV incentive schemes in the country. According to a report by The Driven [Source 1], the ACT government has increased the size of its low-interest loan scheme for electric vehicles and home appliances — and has now added electric cargo bikes to the list of eligible products.
This is a territory-level scheme, separate from the federal FBT exemption for EVs. If you live or work in Canberra, you could potentially stack this loan against a novated lease arrangement — though how you structure that is worth thinking through carefully.
What this means for novated lease customers
For PAYG employees in the ACT, the federal FBT exemption on eligible battery electric vehicles already makes a novated lease one of the most tax-effective ways to get into an EV. The ACT's expanded low-interest loan scheme adds another potential layer of support — particularly for those looking at electric cargo bikes, which are not covered by the federal FBT exemption and therefore sit outside a standard novated lease.
The short version: if you're in the ACT and eyeing an EV, the novated lease route still does the heavy lifting on tax efficiency. The state loan scheme may be more relevant for purchases that fall outside the novated lease framework — like those cargo bikes. As always, your specific situation determines what combination makes sense, so it's worth getting advice rather than assuming you can stack everything automatically.
Common questions
Can I use the ACT low-interest loan scheme alongside a novated lease?
Potentially, but the two arrangements work differently and serve different purposes. A novated lease is structured through your employer and leverages pre-tax salary. The ACT loan scheme is a direct consumer loan. Whether combining them makes sense depends on the vehicle type and your individual circumstances — talk to an adviser before assuming they're compatible.
Are electric cargo bikes covered by the federal FBT exemption?
No. The federal FBT exemption applies to eligible battery electric vehicles (cars, SUVs, utes) under the luxury car tax threshold. Electric cargo bikes do not qualify, which is why a scheme like the ACT's low-interest loan is more relevant for that purchase.
Does this ACT scheme apply if I work in Canberra but live in NSW?
ACT government schemes typically apply to ACT residents. If you live across the border in NSW, you likely won't be eligible — check the ACT's scheme eligibility criteria directly before making any assumptions.
Is a novated lease still worth it for an EV in the ACT?
For most PAYG employees buying an eligible EV under the luxury car tax threshold, the federal FBT exemption accessed through a novated lease remains one of the most significant savings available. The ACT scheme is a complement, not a replacement, for that federal benefit.