Question 1

What's actually happening to the EV Discount in 2029?

Accepted Answer

It's tightening, not disappearing. Right now (until early 2027) every eligible electric car is 100% tax-free through a salary-packaged lease. From 2027 to early 2029 the same deal continues but only for EVs under about $75,000. From 1 April 2029, the full tax-free deal ends and electric cars instead get a smaller discount of about 25% on the tax that would otherwise apply. Important: any lease you have in place before each step keeps the rules that applied when you signed it, for the whole lease term.

Question 2

When does my car need to be delivered to lock in the current rules?

Accepted Answer

On or before 31 March 2029. The new rules begin from 1 April 2029. Once your lease is in place, the rules that applied on the day you signed continue for the whole lease — even if the policy changes after that.

Question 3

Will my existing lease be affected by the changes?

Accepted Answer

No. The government has explicitly said existing leases won't be impacted. Whatever rules apply on the day your lease starts continue for the full term. This is the whole point of timing your delivery before each rule change — once you're in, you're in.

Question 4

Can I get two electric car leases on the current discount?

Accepted Answer

Yes — and this is what our planner is built around. With careful timing of delivery dates, you can stack two fully tax-free leases. The first runs under today's rules until you're ready to swap. The second picks up as a five-year lease that you set up before the rules tighten. Result: roughly eight years of tax-free electric driving locked in by a decision you make today.

Question 5

What's a balloon payment?

Accepted Answer

It's the lump sum left at the end of a lease — the part of the car's value that wasn't paid off during the lease. The Australian Tax Office sets minimum balloon percentages: 65.63% on a 1-year lease down to 28.13% on a 5-year lease. The balloon shown in our calculator is GST-exclusive. If you want to buy the car outright at end of lease, you'd pay the balloon plus 10% GST on top.

Question 6

How is the second lease's amount calculated when I refinance the balloon?

Accepted Answer

When you refinance the balloon into a new lease, the amount being financed is the balloon (with GST removed), plus a $500 establishment fee for the new contract. So a balloon of $50,000 (including GST) becomes about $45,955 financed in the new lease. There's no fresh stamp duty or registration because the car is already registered to you.

Question 7

How is the interest rate worked out for my lease length?

Accepted Answer

The rate sheet has set rates for whole years (1y: 10.84%, 2y: 9.49%, 3y: 9.09%, 4y: 8.83%, 5y: 8.68%). For lease 1 your term is rarely a round number of years — it runs from delivery to April 2029 — so we draw a straight line between the bracketing year rates. A 32-month lease 1 sits between the 2-year and 3-year rates and works out to about 9.22%. Lease 2 is always 60 months and uses 8.68%. These are indicative rates; actual rates depend on market conditions and the lender's assessment.

Question 8

What's the 25% discount that starts in 2029?

Accepted Answer

Today's deal is a full exemption — eligible EVs are completely tax-free. From 1 April 2029, that becomes a permanent 25% discount on the tax that would normally apply. It's still helpful — this is the government wanting EVs to remain attractive — but it's noticeably less than the full deal you can lock in today.

Question 9

What's the price cap for an eligible EV?

Accepted Answer

About $91,661 drive-away for the 2026–27 tax year (the threshold is indexed each year, so it nudges up over time). Cars at or below that price are eligible for the full discount and an import-tariff exemption. From mid-2027 a separate $120,000 threshold applies for some import-tariff arrangements, but the discount itself stays tied to the lower threshold.

Question 10

Can I do a lease that isn't the standard 5 years?

Accepted Answer

Yes — our planner is built around exactly that. Standard calculators assume 1 to 5 whole years. The planner here picks the lease term automatically from your delivery date and the 2029 deadline, so terms like 27 months, 32 months or 41 months are first-class — not edge cases.

Question 11

What happens if my car is delivered after April 2029?

Accepted Answer

The lease will fall under the smaller post-2029 discount instead of the current full deal. It's still attractive — just not as good. If you can take delivery before 31 March 2029, you lock in the full discount for the entire grandfathered term. The planner will redirect you to a standard quote if you pick a delivery date after the cut-off.

Question 12

Can I sell the car at the end of lease 1 instead of refinancing?

Accepted Answer

Absolutely. Every lease ends with three options: refinance the balloon into a new lease for up to five more years, sell the car (millarX helps arrange the sale), or pay out the balloon and own the car outright. The planner's what-if tool lets you punch in your expected sale price and see the cash you'd pocket alongside the cost of leasing a different EV.

Question 13

Are plug-in hybrids (PHEVs) included in the EV Discount?

Accepted Answer

Not anymore. New plug-in hybrid leases entered after 1 April 2025 are no longer eligible. PHEV leases entered before that date stay on the original deal for the rest of the lease.

Two EVs. Maximum EV Discount.

What's the EV Discount?

What's changing in 2029

Two leases. Eight years tax-free.

See what you'd save.

Your details

Regulatory background (FBT, LCT, the works)

Full reference — what's in force, what's coming