Australia's Investment Boom and What It Means for EV Novated Leases
Private sector investment is surging, with renewables and battery storage leading the charge. Here's what that means for EV novated lease customers in 2025.
New ABS figures show Australian private capital expenditure grew 6.5 per cent in the March quarter — more than six times what the market expected. Through the year, capex is up 14.6 per cent. According to the Treasury Ministers release [Source 1], the standout drivers were data centres, renewable energy, and battery storage, with non-mining capex up 20.9 per cent year-on-year.
That's a macro number. But it has a real-world consequence for anyone thinking about an electric vehicle on a novated lease: the infrastructure underpinning EV ownership in Australia is being built right now, at pace, with serious private-sector money behind it.
What this means for novated lease customers
The single biggest practical objection to choosing an EV over a petrol car has always been charging infrastructure. Range anxiety is really infrastructure anxiety. When private investment in battery storage and renewable energy accelerates at the rate the ABS is reporting [Source 1], that objection weakens — charging networks expand, grid reliability improves, and the total cost of running an EV at home and on the road trends down.
For PAYG employees considering a novated lease, the timing matters. The FBT exemption for eligible EVs is still in place (subject to the luxury car threshold), and pairing that exemption with genuinely improving infrastructure is a different proposition than it was two years ago. The policy tailwind and the infrastructure tailwind are running in the same direction at the same time.
None of this means an EV novated lease is automatically right for you. Your kilometres, your charging setup at home, and your employer's payroll cut-off dates all matter. But the macro backdrop — private sector committing serious capital to the energy transition — is worth factoring into a decision you might be sitting on.
Common questions
Does the investment boom directly change the FBT exemption for EVs?
No. The FBT exemption is a separate legislative matter and hasn't changed as a result of these ABS figures. What's changing is the infrastructure environment that makes EV ownership more practical over the life of a three-to-five year lease.
Which EVs are still FBT-exempt under a novated lease?
Battery electric vehicles and plug-in hybrids that sit below the luxury car tax threshold (indexed annually) remain eligible. Your employer must also be set up to offer novated leasing. Check with millarX for the current threshold and a vehicle eligibility check.
Is now a good time to get into an EV novated lease?
That depends on your personal circumstances — how far you drive, whether you can charge at home or work, and your income. The policy settings are favourable right now, but we'd rather you get an honest assessment than a sales pitch.
What does 'battery storage investment' actually mean for EV drivers?
More grid-scale battery storage means the electricity network handles demand peaks better and integrates more renewable generation. Over the life of a novated lease, that can mean more stable overnight charging costs and a lower emissions profile for your vehicle.
How does millarX differ from other novated lease providers?
millarX is ACL-licensed, AFCA-registered, and a Westpac #1-ranked novated broker. Customer funds are held in segregated accounts. We're also accredited with Pepper for customers who need alternative finance structures. Mostly we just try to be straight with you.