One Australian Region Now Sells More EVs Than Petrol Cars
Australia's 'Little Norway' is selling more plug-in EVs than fossil-fuelled vehicles. Here's what the shift means for novated lease customers considering an EV.
Norway became the global benchmark for EV adoption — the country where electric cars quietly became the default, not the exception. Now, according to a July 2026 report from The Driven, at least one Australian region is hitting that same inflection point: more plug-in electric vehicles are being sold there than fossil-fuelled ones.
This isn't a forecast. It's already happening. And the share of PHEVs (plug-in hybrids) in that mix is actually falling — meaning buyers aren't using hybrids as a halfway house anymore. They're going straight to full electric.
If you've been watching EV adoption from the sidelines, wondering when it stops being a niche experiment and becomes a normal thing Australians do, this is a useful data point.
What this means for novated lease customers
The practical implication is straightforward: EV infrastructure anxiety — range, charging, resale uncertainty — is easing in parts of Australia where uptake has gone mainstream. According to the report from The Driven [https://thedriven.io/2026/07/13/australias-little-norway-is-now-selling-more-plug-in-electric-cars-than-fossil-fuelled-vehicles/], EVs in this region are now seen as a viable, normalised option rather than a risky leap into unknown technology.
For PAYG employees considering a novated lease, this matters for two reasons. First, the FBT exemption on eligible battery electric vehicles — legislated under the Treasury Laws Amendment (Electric Car Discount) Act — still applies for qualifying vehicles, meaning the tax treatment of a novated EV lease remains materially different from a petrol equivalent. Second, a maturing second-hand EV market tends to stabilise residual values, which directly affects the economics of a lease.
None of this means an EV is automatically right for your situation. But the 'wait until the tech matures' argument gets harder to make when a whole region has already moved on.
Common questions
What is Australia's 'Little Norway' and why does it matter?
It's a nickname for an Australian region where EV adoption has surged to the point that plug-in vehicles now outsell fossil-fuelled ones — mirroring Norway's early trajectory. It matters because it signals that mainstream EV adoption in Australia isn't theoretical anymore.
Does the FBT exemption still apply to EVs in 2026?
The FBT exemption for eligible battery electric vehicles under the Treasury Laws Amendment (Electric Car Discount) Act remains in place for qualifying vehicles. You should confirm your specific vehicle's eligibility with a licensed adviser, as eligibility rules apply.
Why is the PHEV share falling if EVs are growing?
PHEVs are often treated as a stepping stone — a way to try electrification without fully committing. When full EVs become normalised and charging infrastructure matures, many buyers skip the halfway option and go straight to battery electric.
Does where I live in Australia affect whether a novated EV lease makes sense?
It can. Charging infrastructure, typical daily driving distances, and even local resale markets all play a role. That's why a one-size-fits-all answer doesn't exist — your situation needs to be assessed individually.
Is a novated lease the best way to get an EV in Australia?
For many PAYG employees, a novated lease is one of the most tax-effective ways to finance a vehicle — EV or otherwise — because running costs are bundled into pre-tax salary. Whether it's the best option for you depends on your income, employer, and the vehicle you choose.