EVs Just Hit 23.4% of New Car Sales in Australia
Tesla and BYD smashed EV sales records in June 2026, with electric cars reaching 23.4% market share. Here's what the surge means for novated lease buyers.
Something shifted in June 2026. Electric vehicles hit 23.4% of all new car sales in Australia — not a forecast, not a target, an actual number. According to The Driven, Tesla and BYD alone shipped more than 19,000 EVs between them in a single month, a record for both brands for the second month running (Source 1).
That's not a niche market anymore. Nearly one in four new cars sold last month ran on electricity. The mainstream EV transition the industry kept promising is apparently just... happening.
What this means for novated lease customers
More supply means more choice — and more competition on price. When Tesla and BYD are both breaking their own delivery records, stock constraints ease and wait times shrink. For someone considering a novated lease, that's significant: you're less likely to sign a lease today and wait six months for your car to arrive.
The FBT exemption for eligible battery electric vehicles — introduced under the Treasury Laws Amendment (Electric Car Discount) Act — remains in place for cars under the luxury car tax threshold. That exemption is the reason EVs make particular sense inside a novated lease structure right now. A higher-volume, more competitive EV market means the cars that qualify are increasingly practical, well-supported, and available.
It also means your employer has less reason to say no. EV novated leases are no longer an unusual request — they're becoming the default conversation.
Common questions
Does the FBT exemption apply to Tesla and BYD vehicles?
It can — provided the vehicle is a battery electric car and its purchase price sits under the luxury car tax threshold for fuel-efficient vehicles. Both brands offer models that fall within that limit, but you should confirm the specific variant before signing anything.
Does record EV demand mean I'll still wait a long time for delivery?
Record sales suggest supply chains are catching up, not falling behind. Tesla and BYD both broke their own delivery records in June 2026, which points to more stock flowing through, not less. Your actual wait depends on the model and state — ask your broker for current lead times.
Is a novated lease still worth it for an EV compared to buying outright?
The FBT exemption means the pre-tax salary packaging benefit on an eligible EV can be material — but 'worth it' depends on your income, how many kilometres you drive, and the residual value. Get a comparison run with real numbers before deciding.
What if I want a BYD or Tesla that's above the luxury car tax threshold?
The FBT exemption doesn't apply to the portion above the LCT threshold for fuel-efficient vehicles. A novated lease can still work, but the tax treatment is different. Talk to a broker who can model both scenarios for your specific situation.
Does growing EV market share affect resale values on my novated lease residual?
Potentially, yes — it's a live variable. As EVs become more common, used-EV supply grows, which can put downward pressure on residuals. Balloon/residual values in novated leases are set at contract start, so it's worth understanding what happens at end-of-term before you commit.