Tesla Model Y Tops AAA Range Tests — What It Means for Your Novated Lease
The Tesla Model Y Long Range beat rivals in AAA's real-world EV range tests. Here's what the results mean if you're considering a novated lease. Read on.
Independent range testing matters more than most car ads will tell you. The NRMA's AAA has released its latest real-world EV range results, and the Tesla Model Y Long Range has again come out on top among Australian-market electric vehicles, according to the EVcentral AU report [Source 1]. BYD's entries, by contrast, fell short of their official figures by a wider margin.
This isn't just trivia for EV enthusiasts. If you're weighing up which EV to put on a novated lease, real-world range directly affects your running costs — charging frequency, home versus public charging mix, and whether you'll be reaching for a fast-charger (and paying peak rates) more often than you planned.
What this means for novated lease customers
The FBT exemption for eligible battery electric vehicles remains one of the most straightforward tax benefits available to Australian PAYG employees right now. Both Tesla and BYD models that sit under the luxury car tax threshold can qualify — so the exemption itself doesn't pick a winner between brands.
What the AAA results do affect is the total cost of running the vehicle over a three-to-five year lease term. A car that consistently delivers closer to its rated range means fewer unplanned charging stops, more predictable energy costs, and less battery anxiety eating into your workday. When you're budgeting a novated lease, those variables compound over the life of the agreement.
The Model Y Long Range has also historically held its residual value well in the Australian used-car market, which feeds directly into your lease's residual calculation. A stronger residual can reduce your fortnight-to-fortnight lease payment — though residuals are estimates, not guarantees, and market conditions shift. The BYD story may look different as the brand matures and its resale data deepens. If you're a BYD believer, it's worth watching that space rather than writing it off entirely.
Common questions
Does the FBT exemption apply to both Tesla and BYD vehicles?
Generally yes, provided the vehicle is a battery electric vehicle and its value sits under the relevant luxury car tax threshold at the time of first retail sale. Your specific eligibility depends on your employer's salary packaging arrangement — millarX can confirm this before you sign anything.
Should I choose a car based on range test results alone?
Range is one factor among several. Purchase price, residual value, charging infrastructure on your regular routes, and your employer's approved vehicle list all matter. Real-world range data is a useful reality check on manufacturer claims, but it shouldn't be the only number you look at.
What is the AAA EV range test and why should I trust it?
The AAA (Australian Automobile Association) conducts independent, standardised real-world range testing on Australian roads — not manufacturer-controlled conditions. It's one of the more credible local sources for EV performance data, which is why a gap between official and tested figures is worth paying attention to.
Will BYD's range performance improve?
Possibly. BYD is iterating its battery and software quickly, and newer model variants or over-the-air updates can change real-world efficiency. The AAA tests a point-in-time snapshot — check for updated results before committing to a lease term.
How does real-world range affect my novated lease budget?
A car that falls well short of its rated range means more charging sessions, potentially higher electricity costs, and greater reliance on faster (more expensive) public chargers. These running costs flow through your novated lease budget — which should account for realistic rather than optimistic consumption.