Australia Has Its First Region Selling More EVs Than Petrol Cars
One Australian region now sells more plug-in EVs than fossil-fuelled vehicles. Here's what this EV tipping point means for novated lease buyers.
Norway flipped its car market years ago — more EVs sold than petrol. Australia is now watching its own version play out in real time. According to a report by The Driven published 13 July 2026 [Source 1], one Australian region has crossed that threshold: plug-in electric vehicles now outsell fossil-fuelled cars there. The nickname "Little Norway" has stuck.
This isn't a rounding error or a one-month blip. The report notes that EVs in this region are no longer seen as a scary leap into unknown technology — they're normalised. Interestingly, the PHEV share is also declining as buyers go straight to full battery-electric, skipping the halfway house entirely.
What this means for novated lease customers
Markets don't tip in isolation. When one region normalises EV ownership, it tends to drag resale confidence, charging infrastructure investment, and employer attitudes along with it. All three matter if you're considering a novated lease.
On the policy side, the FBT exemption for eligible zero-emission vehicles remains in place at the federal level, making a battery-electric vehicle under a novated lease one of the more tax-effective ways to own a car as a PAYG employee. A region hitting majority-EV sales is a signal that the practical concerns — range anxiety, charging access — are becoming easier to dismiss. If you've been sitting on the fence, the fence is getting shorter.
PHEV demand cooling is also worth noting. Buyers appear to be gaining enough confidence in full BEV to skip the transitional option. That's relevant to vehicle selection: the FBT exemption currently applies to zero-emission BEVs and hydrogen fuel-cell vehicles, not to PHEVs, so from a tax perspective, the market is moving in the same direction as the policy.
Common questions
Which part of Australia is being called 'Little Norway'?
The Driven's report uses the term but doesn't name the specific region in the excerpt available. The full article at Source 1 has the detail. The broader point — that a real Australian market has crossed the EV majority threshold — is what matters for the industry.
Does the FBT exemption apply to PHEVs?
No. Under current federal legislation, the FBT exemption for novated leases applies to battery-electric vehicles and hydrogen fuel-cell vehicles that fall under the luxury car tax threshold. PHEVs are excluded. If you're choosing between a BEV and a PHEV under a novated lease, that distinction has real tax implications.
Does strong EV sales data affect my novated lease residual value?
Potentially yes. Stronger mainstream EV adoption generally supports resale values, which feeds into how lenders set residual values on novated leases. A healthier second-hand EV market reduces end-of-term risk for you.
Is now a good time to novate an EV?
The FBT exemption is in place now, and there's no legislated end date confirmed at the time of writing. Waiting for 'more certainty' is a common way to miss an existing benefit. That said, your specific situation — salary, employer, vehicle choice — matters more than market timing. Talk to someone licensed to give you the full picture.
What if my employer hasn't offered novated leasing before?
Employers don't need a formal fleet program to offer novated leasing. A single employee can set one up. millarX handles the paperwork and works directly with your payroll team — most employers are agreeable once they understand there's no cost or liability on their side.