Australian EV Sales Are Climbing in 2026 — Here's Why That Matters for Your Novated Lease
EV sales data for 2026 is in. More models, more competition, more choice for novated lease buyers. Here's what the numbers mean for you.
Australia's electric vehicle market is growing, and the latest monthly sales data published by The Driven — drawing on FCAI, EVC and manufacturer figures — shows that trend is continuing into 2026. More Australians are buying EVs than ever before, and a significant slice of those purchases are being structured through novated leases.
That's not a coincidence. The FBT exemption on eligible EVs (legislated under the Treasury Laws Amendment Act) means PAYG employees can package an EV through a novated lease and pay zero fringe benefits tax on private use — something that simply doesn't apply to most petrol or diesel vehicles. Growing model availability means more employees can find an EV that actually suits them, rather than settling.
What this means for novated lease customers
More supply and more competition across EV brands generally puts downward pressure on pricing — which is relevant because the novated lease FBT exemption applies to the cost of the vehicle. A lower purchase price combined with pre-tax salary deductions means the potential savings are real, even if the exact number depends on your salary, tax bracket, and the specific vehicle.
According to the 2026 sales data tracked by The Driven [Source 1], buyers now have a wider range of makes and models to choose from at varying price points. That matters for novated leasing because eligibility for the FBT exemption is tied to the vehicle being a 'zero or low emissions vehicle' as defined by the ATO — and most new battery EVs on sale in Australia qualify. More qualifying models means more options for employees who want to run the numbers before committing.
One thing worth being clear about: the FBT exemption is not permanent. It was introduced as a policy measure and can be changed by government. If you're considering an EV on a novated lease, timing is worth factoring into your thinking.
Common questions
Does every EV qualify for the novated lease FBT exemption?
Most new battery electric vehicles (BEVs) qualify, provided they fall below the luxury car tax threshold at the time of first retail sale. Plug-in hybrids have a separate eligibility window — check with your employer or a licensed novated lease provider before assuming your chosen model qualifies.
Does growing EV supply actually lower what I pay on a novated lease?
Increased model competition can put downward pressure on drive-away prices, which feeds into your novated lease cost base. But the bigger driver of your repayments is your salary, tax bracket, and the residual value set at lease end — not just the sticker price.
I've seen a lot of new Chinese EV brands in the 2026 sales data. Are they eligible?
Brand of origin doesn't determine FBT eligibility — what matters is whether the vehicle is a zero or low emissions vehicle as defined under Australian tax law and whether it's under the luxury car tax threshold. Confirm with a licensed provider before proceeding.
Is the FBT exemption going to last?
It's a legislated measure, not a permanent fixture of the tax code, and it could be amended or removed by a future government. The current exemption has no announced end date as of the time of writing, but it's worth factoring policy risk into any long-term leasing decision.
How do I know if a novated lease is actually worth it for me?
It depends heavily on your income, how much you drive, and the vehicle you choose. The best starting point is running a personalised quote with a licensed novated lease provider — not relying on generic 'average savings' figures you'll see elsewhere.