Australia's EV Market Just Hit 50,000 Sales in One Month
New and used EV sales reached 50,000 in June 2026. Here's what a growing second-hand EV market means if you're considering a novated lease. Read more.
Australia's electric vehicle market keeps moving. According to reporting by The Driven (Source 1), combined new and used EV sales hit 50,000 units in June 2026 alone — a milestone that signals EVs are no longer a niche product in this country. Fuel costs are a big part of the story: more drivers are actively seeking alternatives, and the second-hand market is starting to fill up as early lease cycles wind down.
That last point matters. A wave of novated lease expiries is expected to push more used EVs onto the market in the near term. More supply in the used EV space means more options, and potentially more competitive pricing, for buyers who aren't chasing a brand-new vehicle.
What this means for novated lease customers
If you've been sitting on the fence about a novated lease, the market context is shifting in ways worth understanding. On the new vehicle side, strong sales volumes suggest manufacturer supply has normalised — long wait times that frustrated early EV adopters have largely eased for popular models.
On the used side, the anticipated surge in lease expiries is worth watching. Novated leases are typically structured over two to five years, which means a meaningful cohort of EVs first leased in 2022–2024 under the FBT exemption will start cycling back into the market. For employees who prefer to run their vehicle through a novated lease regardless of age, this dynamic doesn't change the core tax treatment — but it does shape residual values and what happens at the end of your lease term.
The broader trend reinforces something straightforward: EVs are becoming a normal part of the Australian car market. The tax advantages of running one through a novated lease — particularly the FBT exemption that currently applies to eligible zero-emission vehicles — exist independent of whether the market is hot or cooling. What changes is the range of vehicles available to choose from.
Common questions
Does the FBT exemption apply to used EVs on a novated lease?
The FBT exemption for eligible zero-emission vehicles applies based on the vehicle meeting the eligibility criteria at the time the lease is entered into, not whether the car is new or used. You should confirm the specific vehicle and lease structure with a licensed adviser before proceeding — rules can be nuanced.
Will more used EVs on the market affect my novated lease residual value?
Potentially, yes. If used EV supply increases significantly, residual values across the market could soften. Your novated lease sets a residual value at the start of the term, so changes in the broader market don't automatically change your contractual position — but they're worth understanding before you sign.
Is now a good time to start a novated lease on an EV?
There's no universal answer — it depends on your income, the vehicle, your employer's arrangement, and how long you plan to run the lease. What's true is that both supply and policy settings are more settled now than they were two years ago, which makes planning easier.
What happens at the end of a novated lease term?
At the end of your lease you typically have three options: pay the residual and own the vehicle outright, trade it in and roll into a new lease, or refinance the residual. The right choice depends on your situation at the time — millarX can walk you through the options.
Does the 50,000 June sales figure include novated lease vehicles?
The figure reported by The Driven covers combined new and used EV sales across Australia. Novated leases contribute to new vehicle registrations but are not broken out as a separate category in publicly reported sales data.