Australian EV Sales Are Climbing — Here's What It Means for Your Novated Lease
EV sales data for 2026 is in. Here's what Australia's growing EV market means for PAYG employees considering a novated lease. Read the plain-English breakdown.
Australia's EV market keeps growing. According to The Driven's monthly sales tracker ([Source 1]), June 2026 data from the Electric Vehicle Council and several manufacturers confirms another solid month of EV uptake across a widening range of models and brands.
More choices on the market generally means more competition on price — and for PAYG employees looking at a novated lease, more eligible vehicles to choose from. That's a straightforward win, even if the marketing around EVs and salary packaging can get a bit overheated.
What this means for novated lease customers
The FBT exemption for eligible battery electric vehicles — still in place as of mid-2026 under the Treasury Laws Amendment (Electric Car Discount) Act — means that a qualifying EV on a novated lease attracts zero fringe benefits tax. That's the single biggest lever in the novated lease equation for most employees, and it only applies to EVs (and plug-in hybrids, within the eligible price cap).
As more models enter the Australian market, the practical effect is that employees have more genuine options at a range of price points — not just the handful of EVs that were available when the exemption was introduced. According to The Driven's breakdown ([Source 1]), both volume brands and newer entrants posted sales in June 2026, suggesting the supply constraints that frustrated buyers in 2023 and 2024 have largely eased.
For anyone sitting on the fence about whether to go EV or ICE on their next novated lease: the FBT exemption is a material financial difference. It's not hype — it's written into the legislation. What we won't do is quote you a dollar figure here, because your actual saving depends on your income, the vehicle price, your employer's setup, and lease term. That's what our calculator is for.
Common questions
Does the FBT exemption apply to all EVs on the 2026 sales charts?
Not automatically. The vehicle must be a battery electric vehicle (BEV) or eligible plug-in hybrid (PHEV), delivered on or after 1 July 2022, and its GST-inclusive value must sit at or below the luxury car tax threshold at the time of first retail sale. Check the ATO's current threshold before assuming a vehicle qualifies.
Is now a good time to novate an EV given so many new models are arriving?
More supply generally means better pricing and shorter wait times, which can work in your favour on a novated lease. That said, timing a lease around depreciation and residual values matters — it's worth running the numbers for the specific vehicle you want rather than making a call based on the market broadly.
What if the FBT exemption is removed before my lease ends?
This is a legitimate risk and one you should factor in. The exemption is legislated but not permanent — any future government could amend it. A good novated lease provider will walk you through what the numbers look like with and without the exemption so you're not caught out.
Can I novate any EV brand showing up in the 2026 sales data?
Generally yes, provided the vehicle is new or used within the eligible criteria, meets the FBT exemption requirements, and your employer participates in novated leasing. Some lenders have preferred or excluded brands — millarX can tell you quickly whether the vehicle you're looking at is a straightforward deal or not.
How do I know which EV is the best choice for a novated lease?
The best vehicle for a novated lease isn't necessarily the most popular one in the sales charts. Residual value, on-road costs, charging infrastructure, and your actual driving needs all affect the total cost of the lease. Use our calculator as a starting point, then talk to us.