The ATO says new PHEV arrangements generally stopped qualifying for the electric-car exemption from 1 April 2025. Certain pre-existing exempt binding arrangements may continue.

Explore vehicles

02 / GUIDE

See the full cost

Eligible battery-electric cars can still qualify under current conditions. Do not assume every electric-labelled model or every expensive EV qualifies.

Test the costs

03 / GUIDE

Choose your next step

Compare financing costs, residuals, fuel and electricity use, servicing, employer rules and the full contract rather than choosing based on FBT treatment alone.

Understand FBT conditions

Before you commit

Four things to check.

A headline payroll deduction does not establish the total cost or guarantee a tax saving. Compare the same vehicle and term.

Calculate a scenario

Employer eligibility

Confirm your employer supports the arrangement and what happens if employment changes.

All finance costs

Ask for the drive-away price, interest and itemised fees.

Residual and early exit

Check the end-of-term obligation and termination conditions.

Current tax rules

Verify current ATO conditions and your circumstances with qualified professionals.

Continue your EV journey.

Next guideElectric Car Novated Lease Australia: How It Works Next guideEV Novated Lease FBT Exemption: 2026 Rules and 2027 Changes Next guideNovated Lease vs Car Loan for an EV: Total Cost Comparison Explore the cost calculator

Official and supporting sources

https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/types-of-fringe-benefits/fbt-on-cars-other-vehicles-parking-and-tolls/fbt-on-plug-in-hybrid-electric-vehicles

EVITAL publishes educational information only. No finance provider applications or referrals are offered on this page. EVITAL does not provide lease quotes, arrange credit, recommend financial products or calculate personal tax outcomes. Confirm current legislation, vehicle eligibility and contract terms with relevant professionals and providers.