Australia's EV Investment Boom and Your Novated Lease
Private capex is surging — data centres, renewables and battery storage leading the charge. Here's what Australia's investment boom means for EV novated leases.
New figures from the Australian Bureau of Statistics show private capital expenditure grew 6.5 per cent in the March quarter — more than six times the median market expectation. Through the year, capex is up 14.6 per cent. According to the Treasury Ministers release [Source 1], the growth is being driven by data centres, renewable energy and battery storage, with non-mining capex up a striking 20.9 per cent year-on-year.
For most PAYG employees, macro investment data sounds like background noise. But there's a direct thread between this infrastructure build-out and the novated lease market — specifically the EV segment — that's worth understanding before your next car decision.
What this means for novated lease customers
The private sector is placing very large bets on renewable energy and battery storage infrastructure. That build-out has two practical consequences for anyone considering an EV on a novated lease.
First, it accelerates charging network density. More private capital flowing into battery storage and grid infrastructure means the 'range anxiety' objection that held many buyers back in 2022–23 carries less weight today. Second, sustained investment signals that EV supply chains are maturing. More models, more competition, and — over time — less pressure on delivery wait times that have historically complicated novated lease start dates.
Under the current FBT exemption for eligible battery electric vehicles (as legislated and detailed by the ATO), employees packaging an EV through a novated lease can still access meaningful pre-tax savings on both the vehicle cost and running expenses. The investment surge described in the Treasury release [Source 1] reinforces that EVs are moving from niche to mainstream — which matters when you're committing to a 3–5 year lease term. None of this is a reason to rush a decision, but it is a reason to run the numbers properly rather than waiting for a 'better time' that may not come.
Common questions
Does the investment boom change the FBT exemption rules for EVs?
No. The FBT exemption for eligible battery electric vehicles is set by legislation and ATO guidance, not by investment trends. What the capex data tells us is that the broader EV ecosystem — charging, grid stability — is expanding, which affects the practical case for going electric, not the tax rules.
Will more infrastructure investment make EVs cheaper to run on a novated lease?
Potentially. Increased competition in charging networks and improving grid capacity can reduce per-kilometre electricity costs over time. Your novated lease budget already covers fuel (electricity) as a pre-tax running cost, so lower charging rates would stretch your budget further.
Is now a good time to lock in an EV novated lease, given market uncertainty?
That depends entirely on your individual circumstances — income, employer participation, vehicle choice and how long you plan to hold the car. We'd rather you speak to one of our brokers and get actual numbers than make a call based on news headlines, including this one.
Which EVs are currently eligible for the FBT exemption in Australia?
Eligible vehicles are battery electric or plug-in hybrid vehicles below the luxury car tax threshold, as defined by current ATO guidance. The list changes as new models are released and thresholds are updated — check with millarX or the ATO directly for the current position.
How is millarX different from other novated lease providers?
millarX is ACL-licensed (ACL 569484), AFCA-registered, and ranked as Westpac's number one novated broker. Customer funds are held in segregated accounts. We focus on transparency over sales volume — if a novated lease isn't right for your situation, we'll tell you.