Australian EV Sales Are Climbing — Here's What It Means for Your Novated Lease
2026 EV sales data is in. More Australians are buying electric — and many are using novated leases to do it tax-effectively. Here's what the numbers tell us.
Fresh data from the FCAI, EVC and individual manufacturers — compiled by The Driven — shows Australian electric vehicle sales continuing to grow through 2026, with monthly breakdowns revealing which models and brands are gaining traction. If you're watching this space, the direction is clear: EV uptake in Australia isn't stalling.
That matters for anyone considering a novated lease, because the FBT exemption for eligible EVs remains one of the most significant tax concessions available to Australian PAYG employees right now. More models on sale means more choice — and more competition on price.
What this means for novated lease customers
A broader, more competitive EV market is generally good news if you're thinking about a novated lease. More brands competing for Australian buyers tends to put downward pressure on drive-away pricing, which flows through to your lease repayments.
According to the sales data reported by The Driven [Source 1], multiple models across different price brackets are now moving in meaningful volumes. That means you're no longer limited to a handful of options if you want to stay under the FBT exemption's luxury car threshold — there's genuine variety across SUVs, sedans and small cars.
The key thing to understand: the FBT exemption for battery electric vehicles means that, for eligible vehicles, your employer doesn't pay Fringe Benefits Tax on the lease — and that saving is passed through to you via lower pre-tax deductions. The more affordable the vehicle, the more of your salary package you keep. We're not going to put a dollar figure on that here — use the calculator on our homepage — but the potential savings on a popular mid-range EV are material.
Common questions
Does every EV qualify for the FBT exemption on a novated lease?
No. To qualify, the vehicle must be a battery electric, hydrogen fuel cell, or plug-in hybrid vehicle (PHEVs were grandfathered from 1 April 2025), and the vehicle's value must sit below the luxury car tax threshold at the time of first retail sale. Your novated lease provider should confirm eligibility before you sign anything.
Should I rush to buy before EV prices move?
We'd caution against letting FOMO drive a major financial decision. Vehicle prices and residual values in the EV market are still finding their floor. Focus on whether the vehicle suits your actual needs and budget — the tax benefit is meaningful either way.
How do I know which model gives me the best outcome on a novated lease?
It depends on your income, how far you drive, whether you charge at home, and your employer's salary packaging setup. A decent novated lease broker will model this for you at no cost before you commit.
Are plug-in hybrids (PHEVs) still FBT-exempt?
PHEVs ordered and delivered before 1 April 2025 remain exempt for the life of that lease. New PHEV leases entered into after that date are no longer eligible for the exemption. Battery EVs are unaffected — the exemption continues for them.
Does rising EV popularity affect residual values on my lease?
It's a fair question. Residual values are set at the start of your lease based on industry guides, and rapid model proliferation can create uncertainty. This is worth discussing with your broker — millarX is ACL-licensed and AFCA-registered, so we're obligated to give you advice that's in your interest, not just close a deal.