Australian EV Sales Are Climbing in 2026 — Here's Why Novated Leasing Is Part of That Story
EV sales data for 2026 is in. See which models Australians are buying and how a novated lease could make an EV more accessible for PAYG employees.
Australia's electric vehicle market keeps moving. The latest month-by-month sales breakdown from The Driven [Source 1] shows continued growth in EV uptake across 2026, with data updated through June from the Electric Vehicle Council (EVC) and several manufacturers directly.
The numbers confirm what most people already sense on the road: more EVs, more models, and more Australians actually buying them — not just browsing. That shift is real, and it didn't happen by accident.
What this means for novated lease customers
A big chunk of that sales growth is being driven by employees using novated leases to get into an EV. The reason is straightforward: since April 2022, eligible battery electric vehicles under the luxury car tax threshold have been exempt from Fringe Benefits Tax (FBT) under the Federal Government's Electric Car Discount policy. That exemption applies to novated leases, which means the lease payments are made from your pre-tax salary — reducing the income you're taxed on.
The result is that the effective cost of running a qualifying EV through a novated lease is materially lower than buying the same car outright. That's not marketing spin — it's how the tax treatment works. Whether the numbers stack up for your specific situation depends on your income, the vehicle you choose, and your km estimates. That's what a proper quote is for.
With more models hitting Australian shores in 2026 — including more affordable options — the range of vehicles that fit inside the FBT exemption threshold has widened. If you've been waiting for the right model or the right price point, the current market is the most competitive it's been.
Common questions
Which EVs are selling best in Australia in 2026?
The Driven's updated tracker [Source 1] breaks this down by model and brand month by month. The mix has broadened significantly compared to 2023-24, with more mid-range options now appearing in the top sellers.
Does the FBT exemption still apply to EVs in 2026?
As of mid-2026, the FBT exemption for eligible battery electric vehicles under the luxury car tax threshold remains in place. You should confirm the current status with a licensed adviser before signing any agreement, as government policy can change.
Can I novated lease any EV on the market?
Most new battery electric vehicles priced under the luxury car tax threshold qualify for the FBT exemption through a novated lease. PHEVs (plug-in hybrids) were included under a separate provision — check with millarX on the current rules for the specific model you're considering.
Is a novated lease always the best way to buy an EV?
Not always. It depends on your income, how many kilometres you drive, and whether your employer supports novated leasing. It's genuinely a good deal for many PAYG employees — but we'd rather you understand the numbers than just trust the hype.
What's the luxury car tax threshold for the FBT exemption?
The threshold is updated by the ATO each financial year. Check the ATO's current figures directly — millarX can also confirm the threshold that applies to the vehicle you're looking at when you request a quote.