Australia's EV Market Just Hit 20% — Here's Why That Matters
EVs now make up 20% of new car sales in Australia. Find out what this milestone means for novated lease customers considering an electric vehicle.
One in five new cars sold in Australia is now electric. According to The Driven, June 2026 delivered the country's biggest EV sales month on record, with Tesla leading the charge (Source 1).
That's not a rounding error or a one-month blip driven by end-of-financial-year fleet orders. It's a structural shift — and if you're an Australian PAYG employee thinking about your next car, it's worth understanding what it actually changes for you.
What this means for novated lease customers
The 20% milestone matters for novated leasing for a few concrete reasons.
More choice, more competition on price. When EV market share was sitting at 3–4%, dealers held the cards. At 20%, supply is catching up with demand — which generally means better drive-away pricing and less dealer premium, both of which feed directly into your lease cost.
The FBT-exempt EV list keeps growing. Under the current rules, eligible battery electric and plug-in hybrid vehicles under the luxury car tax threshold can attract zero FBT through a novated lease. A broader market means more models qualifying, and more options at different price points for employees. Tax claims here are governed by ATO guidance — your millarX consultant can confirm whether a specific vehicle qualifies before you sign anything.
Tesla topping the charts is relevant. The Model 3 and Model Y remain the two most commonly novated EVs in Australia. With Tesla leading June 2026 sales, turnaround times and stock availability — historically the biggest practical blocker for EV novated leases — appear to be improving (Source 1).
None of this means an EV novated lease is automatically the right call for everyone. It depends on your salary, your driving habits, whether you can charge at home, and the vehicle you actually want. But the market conditions in mid-2026 are meaningfully better than they were 12 months ago.
Common questions
Does the FBT exemption still apply to EVs in 2026?
As of the time of writing, eligible EVs under the luxury car tax threshold remain FBT-exempt when novated leased by an employer. This is subject to ATO rules and can change — your millarX consultant will confirm current eligibility for any specific vehicle before you commit.
Does the 20% EV market share mean prices are dropping?
Broadly, yes — greater supply and more competing models tend to compress pricing. That said, individual vehicle pricing varies. A novated lease locks in the on-road cost at signing, so current market conditions matter.
Is Tesla still the best EV to novate?
Tesla remains the most popular choice, but 'best' depends entirely on your circumstances — salary, usage, charging access, and personal preference. Newer entrants from BYD, Polestar, Hyundai, and now Cadillac are worth comparing.
What's the catch with an EV novated lease?
The main practical considerations are home charging access, the vehicle's real-world range for your commute, and ensuring the model you want is actually in stock. millarX will walk through all of these before recommending anything.
Can I novate a used EV?
Used EVs can be novated, but the FBT exemption currently applies only to new and demo eligible vehicles. Used EV novated leases may still offer salary-packaging benefits — speak to a consultant for your specific situation.