Federal FBT Exemption
The biggest financial incentive for EVs in Australia is the Fringe Benefits Tax exemption for eligible electric vehicles provided through a novated lease. This can save employees $5,000–$15,000+ per year compared to a petrol-equivalent car on a novated lease.
To qualify: the car must be a battery electric vehicle (BEV), plug-in hybrid (PHEV), or hydrogen fuel cell vehicle. Its value must be below the luxury car tax threshold for fuel-efficient vehicles ($91,387 for 2025–26). It must not have been held or used before 1 July 2022.
State Incentives
| State | Incentive | Status |
|---|---|---|
| ACT | Zero stamp duty on EVs | Ongoing |
| VIC | Zero duty on new EVs/PHEVs (below LCT threshold) | Check — was being phased out through 2025 |
| NSW | $3,000 rebate ended | Closed |
| QLD | $6,000 rebate ended | Closed |
| SA | $3,000 rebate ended | Closed |
| WA, TAS, NT | Standard rates apply | No specific EV incentives |
Road User Charges
Victoria and some other states have introduced (or planned) per-kilometre road user charges for EVs and PHEVs, since these vehicles don't pay fuel excise. Check your state for current rates — typically 2–3 cents per kilometre.
The Novated Lease Advantage
A novated lease lets you pay for a car from your pre-tax salary. Combined with the FBT exemption for EVs, this makes electric vehicles significantly cheaper to run than equivalent petrol cars. Talk to your employer's salary packaging provider or a novated lease broker for a personalised comparison.
Frequently Asked Questions
Is the FBT exemption for all EVs?
It applies to battery electric, plug-in hybrid, and hydrogen vehicles below the luxury car tax threshold ($91,387 for fuel-efficient vehicles in 2025–26). It must be provided through an employer arrangement — not a personal purchase.
Do I need a novated lease?
The FBT exemption requires the car to be provided as a fringe benefit — typically through a novated lease or employer-provided vehicle. Buying an EV personally doesn't trigger the FBT exemption.
Are there EV rebates in NSW?
The NSW $3,000 EV rebate has ended. The main incentive now is the federal FBT exemption via novated lease.