Your EV Could Help Keep the Lights On in Australia
New analysis suggests EVs are a grid asset, not a burden. Here's what that means for Australian employees considering a novated lease on an EV.
The narrative that electric vehicles will 'break the grid' has been a favourite talking point of EV sceptics for years. A new piece in The Driven pushes back hard on that framing — and the argument is worth paying attention to if you're weighing up whether to go electric through a novated lease.
According to The Driven's analysis, EVs aren't a threat to grid stability — they're potentially the missing piece of a cleaner, cheaper electricity system. The catch? We have to design for them deliberately, rather than treating them as just another appliance plugged into an already-stressed network.
What this means for novated lease customers
If you're an Australian PAYG employee sitting on the fence about leasing an EV, the grid argument has probably been one of those nagging doubts. The Driven's reporting [Source 1] suggests that doubt is increasingly outdated — and that the policy and infrastructure conversation is shifting toward smart charging and vehicle-to-grid (V2G) technology, not grid restrictions on EV uptake.
In practical terms, this matters for a few reasons. First, it signals that governments and network operators are moving toward enabling EV ownership, not limiting it — which reduces the policy-risk concern some buyers have. Second, as smart charging infrastructure matures, EV owners may eventually be able to draw down energy costs further by exporting power during peak periods. That's speculative for now, but the direction of travel is clear.
What isn't speculative is the tax treatment of EVs under a novated lease today. Eligible low-emissions vehicles — those under the luxury car tax threshold — currently attract an FBT exemption, meaning the lease payments come out of your pre-tax salary. That's a genuine structural advantage over buying the same car outright, and it has nothing to do with the grid debate. The grid story just adds another layer of confidence that choosing an EV isn't a bet against the future.
Common questions
Will EVs actually damage Australia's electricity grid?
Current analysis, including the piece cited by The Driven, suggests the opposite — EVs have the potential to act as flexible, distributed energy storage if charging is managed smartly. The 'EVs will break the grid' argument is becoming harder to sustain as network design evolves.
Does the grid debate affect whether I should get a novated lease on an EV?
Not directly. The financial case for an EV novated lease sits on the FBT exemption for eligible vehicles, not on grid policy. The grid conversation is relevant context for your long-term confidence in the technology, not a factor in how your lease is structured or taxed.
What is vehicle-to-grid (V2G) and could it reduce my running costs?
V2G technology lets an EV export stored electricity back to the grid or your home during peak periods. It's still early-stage in Australia, but if it becomes mainstream, EV owners could potentially offset some energy costs. It's worth watching, but don't factor speculative V2G income into your lease decision today.
Which EVs are eligible for the FBT exemption on a novated lease?
Battery electric vehicles and plug-in hybrids below the luxury car tax threshold for fuel-efficient vehicles are currently eligible. The exact threshold changes annually, so check with a licensed novated lease broker — like millarX — before you commit to a specific model.
Is millarX qualified to advise me on a novated lease?
millarX holds Australian Credit Licence 569484, is a member of the FBAA and AFCA, and is Westpac's number-one ranked novated broker. Customer funds are held in segregated accounts. We can walk you through the numbers without the sales pitch.