EVs Just Outsold Diesel and Hybrids — Here's What That Means for Your Novated Lease
June 2026 new-car data shows EVs outselling diesel and hybrids for the first time ever. What the shift means if you're considering a novated lease. Read more.
For the first time in Australian automotive history, electric vehicles outsold both diesel and hybrid cars in a single month. June 2026 new-car figures, reported by EVcentral AU [Source 1], show the market hitting an all-time sales record — with Tesla and BYD leading the charge.
That's not a rounding error or a fleet distortion. It's a structural shift. The majority of Australians shopping for a new car right now are seriously considering an EV, and a growing number are using novated leasing to get one.
What this means for novated lease customers
The timing matters. Australia's FBT exemption for eligible electric vehicles — which removes fringe benefits tax from the private-use portion of a novated lease on a qualifying EV — is still in place. When you combine that tax treatment with pre-tax salary deductions, the potential savings over a standard car loan can be material. We won't put a number on it here (use the calculator), but the gap is real and worth running.
The surge in EV supply is also practical good news: more models, more stock, and more competitive pricing from brands like BYD mean you're no longer limited to a handful of high-priced options. Broader choice makes it easier to find a vehicle that fits your budget and your actual life — not just the lease structure.
One thing worth being clear-eyed about: not every EV qualifies for the FBT exemption. The vehicle must be a zero or low-emissions car under the relevant threshold, and the rules have nuance. If you're being told by anyone that every EV automatically qualifies, push back. Get specifics.
Common questions
Does the FBT exemption apply to all EVs on a novated lease?
No. The exemption applies to eligible zero or low-emissions vehicles that meet the government's criteria, including a luxury car tax threshold cap. Some vehicles — particularly higher-priced models — may fall outside the exemption. Always confirm eligibility before signing anything.
Is a novated lease the best way to get an EV in Australia?
For PAYG employees who want to reduce taxable income and avoid GST on the purchase price, it's hard to beat — especially for EVs that qualify for the FBT exemption. Whether it's right for you depends on your salary, usage, and how long you plan to keep the car.
BYD and Tesla are booming — can I novate either of them?
Many models from both brands are eligible for novated leasing. Eligibility for the FBT exemption depends on the specific model and its price at the time of delivery. We can confirm this before you commit.
Will the FBT exemption last?
The exemption is legislated but not permanent — it's subject to future government decisions. Our general advice: if you're going to take advantage of it, don't wait around assuming the window stays open indefinitely.
What if I want a hybrid instead of a full EV?
Plug-in hybrids (PHEVs) may qualify under the FBT exemption depending on emissions ratings, but standard hybrids generally don't. Full EVs currently have the clearest path to maximum tax benefit under the existing rules.