EVs Hit 23.4% Market Share in Australia — Here's Why It Matters
Tesla and BYD smashed Australian EV sales records in June 2026. Here's what surging EV uptake means for novated lease buyers right now. Read on.
Electric vehicles just crossed a milestone that would have seemed far-fetched two years ago. In June 2026, EVs accounted for 23.4% of new car sales in Australia — and Tesla and BYD alone shipped more than 19,000 electric cars between them in a single month, according to The Driven [Source 1]. That's not a blip. That's a structural shift in what Australians are buying.
For context: a 23-percent market share means nearly one in four new cars driving off a lot last month was electric. The supply pipeline has caught up, prices have come down at the entry level, and — critically for PAYG employees — the tax settings that make EVs attractive through a novated lease are still firmly in place.
What this means for novated lease customers
The FBT exemption for eligible battery electric vehicles under the Treasury Laws Amendment (Electric Car Discount) Act remains in force, meaning a qualifying EV taken under a novated lease arrangement can be packaged from your pre-tax salary, with no fringe benefits tax applied to the private use portion. That's a meaningful structural advantage that doesn't apply to the equivalent petrol or hybrid vehicle.
The record sales figures reported by The Driven [Source 1] also signal something practical: residual values on popular EV models are holding up as the second-hand market deepens. A wider pool of used EVs generally supports more realistic balloon/residual estimates at lease end — something worth factoring into any comparison you run.
None of this means every EV on the market is a slam-dunk through a novated lease. Model eligibility, your marginal tax rate, your kilometre estimate, and the finance rate your employer's scheme offers all move the needle. But if you've been sitting on the fence, the June sales data suggests the mainstream has already made its call.
Common questions
Does the FBT exemption apply to both Tesla and BYD models?
Eligibility depends on the vehicle's first retail sale price sitting under the luxury car tax threshold and the vehicle being a battery electric (not a plug-in hybrid, which lost the full exemption from 1 April 2025). Most current Tesla Model 3 and BYD Atto 3 variants qualify, but confirm the specific variant and price with your novated lease provider before committing.
Why do record EV sales matter to me as a novated lease customer?
Higher volume means more competitive dealer pricing, better parts and service networks, and a growing used-car market — all of which reduce the risks that traditionally made EVs a harder leasing proposition. More supply generally means less pressure on residual values at lease end.
Is now a good time to lock in an EV novated lease?
The FBT exemption is legislated but not permanent — any future federal budget could adjust it. Locking in while the exemption exists means your lease terms reflect today's tax treatment. That said, you should model your own numbers rather than assume the tax benefit alone makes it worthwhile.
What if I'm not ready to commit to a full EV — are PHEVs still eligible?
Plug-in hybrids lost the full FBT exemption for leases entered into on or after 1 April 2025. They can still be novated, but the tax treatment is less favourable than for a pure battery electric vehicle. Run a side-by-side comparison before deciding.