ACT's Low-Interest EV Loan Scheme Just Got Bigger
The ACT has expanded its low-interest loan scheme for EVs and added electric cargo bikes. Here's what Canberra-based employees should know about combining it with a novated lease.
The ACT Government has expanded its low-interest loan scheme for electric vehicles — and this time electric cargo bikes are in too. According to a report by The Driven [Source 1], the scheme now covers larger loan amounts for EVs as well as home appliances, broadening access for Canberra residents who want to go electric without a massive upfront hit.
This is a territory-level program, separate from the federal FBT exemption for eligible EVs under the Treasury Laws Amendment (Electric Car Discount) Act 2022. That distinction matters if you're trying to stack benefits — both can be relevant, but they work differently.
What this means for novated lease customers
If you're a PAYG employee based in the ACT, you may now have two levers worth pulling: the territory's expanded low-interest loan and the federal FBT exemption available through a novated lease on eligible EVs.
These aren't automatically compatible — a novated lease is a three-way arrangement between you, your employer, and a finance provider, whereas the ACT loan scheme is a direct government loan to you as an individual. You generally can't use a government loan as the finance vehicle inside a novated lease structure. What they can do is serve different needs: one funds the vehicle, the other packages your running costs pre-tax.
The addition of electric cargo bikes is worth noting for employees who don't need a car but do want a tax-effective way to manage commuting costs. Cargo bikes aren't typically eligible for a standard novated lease, so the ACT loan scheme may be the more practical route there. If your situation is specific, talk to a licensed adviser before assuming any combination works.
Common questions
Can I combine the ACT low-interest loan with a novated lease on the same EV?
Generally no — a novated lease requires the finance to sit within the lease structure, not an external government loan. They're separate products that serve different purposes. Speak to a broker to confirm your specific situation.
Does the federal FBT exemption still apply to EVs in the ACT?
Yes. The federal FBT exemption for eligible battery electric vehicles is a national policy and applies regardless of which territory or state you live in. The ACT loan scheme is an additional, separate benefit.
Are electric cargo bikes eligible for a novated lease?
Typically no — novated leases are structured around motor vehicles as defined under the FBTAA. Cargo bikes generally don't meet that definition. The ACT loan scheme may be more suitable for financing an e-cargo bike.
Who is eligible for the ACT low-interest loan scheme?
Eligibility details and loan limits are set by the ACT Government and can change. Check the ACT Government's official channels or the source article at The Driven for the most current criteria.
Is a novated lease still worth it for an EV if I live in the ACT?
For most PAYG employees buying an eligible EV, the pre-tax treatment of lease payments and running costs through a novated lease can still represent meaningful potential savings — independent of what the ACT scheme offers. The two options address different parts of the cost equation.