Australia's EV tax perk is being wound back. If you're thinking about a novated lease, you've got until March 2027 to lock in the full benefit.
What’s up: The federal government currently exempts electric vehicles from fringe benefits tax when bought through a novated lease, meaning employees can effectively pay for a car through their employer and cop no tax on it at all.
Big attention: The policy proved far more popular than expected, blowing out to more than ten times its $90 million forecast for this year alone.
The changes: From April 2027, the full exemption will only apply to EVs under $75,000, with a reduced 25% discount for cars up to $91,000.
From April 2029, the full exemption disappears entirely and the 25% discount becomes the ceiling for everything under $91,000.
For most buyers, the first change may not bite hard.
What it covers: All five of Australia's best-selling EVs come in under the $75,000 threshold, including the:
Tesla Model Y $64,373
BYD Sealion 7 $58,697
Tesla Model 3 $59,920
Kia EV5 $56,770
Geely EX5 $44,584
The National Account’s Archie Milligan has the rundown: