Australia Hit 50,000 EV Sales in June — What It Means for Novated Leases
New and used EV sales reached 50,000 in June 2026. Here's what the growing second-hand EV market means for novated lease customers. Read the plain-English breakdown.
Australia sold 50,000 new and used electric vehicles in June 2026, according to a report covered by The Driven. That's not just a headline number — it signals that the EV market here is maturing fast, and the second-hand segment is starting to move.
The same report flags something worth paying attention to: a coming surge in lease expiries is expected to push a wave of off-lease EVs into the used market. More supply typically means more competitive pricing. For employees weighing up a novated lease right now, timing matters.
What this means for novated lease customers
If you're already in or considering a novated lease on an EV, a few things are worth unpacking.
First, new EVs remain FBT-exempt under current federal policy for eligible zero or low-emission vehicles — that benefit hasn't changed. A novated lease is still one of the most tax-effective ways a PAYG employee can access a new EV, because lease payments are made from pre-tax salary and the FBT exemption removes what would otherwise be a significant fringe benefit cost.
Second, the growing used EV pool is relevant if your current lease is approaching expiry — or if you're considering whether to buy out your vehicle at residual. As more off-lease EVs hit the market, residual values could face downward pressure. That's not necessarily bad: it may open up more affordable options for employees who want to enter the EV market for the first time through a used vehicle, though novated leasing on used vehicles comes with its own considerations worth discussing with a broker.
Common questions
Does the FBT exemption still apply to new EVs in mid-2026?
Yes — as of the time of writing, eligible zero and low-emission vehicles accessed through a novated lease remain exempt from fringe benefits tax under current federal legislation. Always confirm the latest position with a licensed adviser, as policy can change.
Can I novated lease a used EV?
In many cases, yes — some lenders will finance used EVs through a novated lease structure, though eligibility criteria apply, including vehicle age and condition. Speak to a broker to check what's available for a specific vehicle.
What happens to my residual value if the used EV market floods with off-lease stock?
If used EV supply increases significantly, residual values on older models could soften. This is worth factoring in when you choose your residual percentage at the start of a lease — a conversation worth having before you sign.
Is a novated lease still worth it if I'm not sure about EV technology?
A novated lease can also apply to non-EV vehicles, though you won't get the FBT exemption benefit on those. The value of the structure depends on your marginal tax rate, employer participation, and how many kilometres you drive — there's no universal answer.
Who is millarX and why should I listen to you?
millarX is an Australian novated lease broker operating under ACL 569484, FBAA member, and AFCA-registered. We're Westpac's number-one ranked novated broker. We don't manufacture cars or employ your HR team, so our only job is to get you a straight answer.