EVs Just Outsold Diesel and Hybrids for the First Time
June 2026 new-car data shows EVs beating diesel and hybrids in Australia. Here's what it means for novated lease buyers right now. Read the breakdown.
Australia's new-car market hit an all-time sales record in June 2026 — and buried in that headline number is a shift that would have seemed far-fetched two years ago: electric vehicles outsold both diesel and hybrid cars in the same month. According to EVcentral AU [Source 1], Tesla and BYD were among the standout performers driving that result.
This isn't just an interesting stat. It's a signal that EV supply has normalised, buyer hesitation is dropping, and the model range available to Australian employees has never been broader. If you've been sitting on the fence about whether an EV through a novated lease makes practical sense, the market just answered part of that question for you.
What this means for novated lease customers
More EVs selling means more competition between dealers and more availability across popular models — including the Tesla Model 3, Model Y, and a growing BYD lineup. That's relevant to you as a novated lease customer because delivery wait times and dealer negotiating room both improve when supply is healthy.
Critically, the FBT exemption for eligible battery electric vehicles under the Treasury Laws Amendment (Electric Car Discount) Act remains in place [Source 1 references the broader policy context]. This means PAYG employees can still package a qualifying EV through a novated lease and pay zero FBT on the benefit — a structural tax advantage that doesn't exist for most other vehicle types. As EVs move into the mainstream, this exemption becomes a bigger deal, not a smaller one: there are simply more models to choose from that qualify.
One honest caveat: the FBT exemption has a luxury car threshold interaction and an income-tested element worth understanding before you sign anything. A good novated broker should walk you through both — not gloss over them.
Common questions
Does the FBT exemption still apply to EVs in 2026?
Yes, eligible battery electric vehicles (BEVs) and plug-in hybrids that met the original criteria remain exempt from FBT under the Electric Car Discount legislation. The rules and eligible vehicle list are worth confirming before you commit — millarX can do that check for you.
Are Tesla and BYD vehicles eligible for the novated lease FBT exemption?
Many Tesla and BYD models fall under the eligible vehicle price threshold and qualify as battery electric vehicles. Eligibility depends on the vehicle's GST-inclusive value at the time of first retail sale — specific models should be confirmed against current ATO guidance.
If EV sales are booming, does that mean the FBT exemption might get removed?
That's a fair question — and it's not without political risk. The exemption was always framed as a demand-stimulation measure. As EV adoption becomes mainstream, future governments may revisit it. Nothing is legislated beyond current law, so if you're thinking about it, sooner is generally safer than later.
What's the actual tax benefit of packaging an EV through a novated lease?
The benefit comes from paying lease costs with pre-tax salary (reducing your taxable income) combined with zero FBT liability on a qualifying EV. The dollar value depends on your salary, the vehicle cost, and your employer's payroll structure — use a calculator or speak to a broker for a figure specific to your situation.
Can I novate a BYD vehicle in Australia?
Yes. BYD models sold through authorised Australian dealers are eligible for novated leasing like any other make, provided they meet FBT exemption criteria. millarX works with all major EV brands.