Electric vehicles (EVs) are no longer the future - they’re the now. With sustainability on the rise and governments backing the transition to cleaner transport, more Australians are getting behind the wheel of EVs. But how does tax work for electric vehicles across Australia? And how can you use smart strategies like novated leasing to reduce your costs?
Let’s break it down - simply.
Why Is EV Tax a Hot Topic in Australia?
Australia is gradually transitioning toward electric mobility, but tax policies vary across states and are constantly evolving. Most of the discussion centres on two things:
Incentives to encourage EV adoption
Potential future road-user charges
Currently, most Australian states offer some form of support or rebate for EV buyers, such as stamp duty exemptions, registration discounts, or purchase incentives. At the same time, there’s growing discussion around how EV drivers contribute to road maintenance, with some states trialling road-user charges in place of fuel excise taxes.
That said, the big win for EV drivers right now isn’t just in state-based perks - it’s in federal tax advantages through novated leasing.
The Federal Advantage: EVs and Fringe Benefits Tax (FBT) Exemption
Here’s the real game-changer: eligible electric vehicles in Australia can be exempt from Fringe Benefits Tax (FBT) when acquired through a novated lease.
What this means:
You can lease an EV through your employer using your pre-tax salary, AND;
Pay no FBT on that vehicle (if it meets eligibility criteria)
That’s a huge saving - and a major reason why EV novated leasing is taking off across the country.
How Novated Leasing Helps You Save Tax
A novated lease is a three-way agreement between you, your employer, and a finance company. You choose the car - Easi takes care of the paperwork - and your employer deducts the lease and running costs from your pre-tax income.
Tax benefits include:
Reduced taxable income
No GST on the vehicle purchase price or running costs
FBT exemptions for eligible EVs
Simplified budgeting with all costs (insurance, servicing, rego, etc.) in one payment
With an EV, the tax savings can be even more substantial compared to traditional cars. You're saving money and doing your part for the planet.
Why Choose Easi for Your EV Lease?
Not all novated lease providers are created equal. At Easi, we specialise in making novated leasing simple, transparent, and tailored - especially when it comes to electric vehicles.
Here’s how we help:
Tax Made Easy: We help you understand your tax benefits without the jargon.
Expert EV Support: From Teslas to BYDs, we help you choose and source your ideal EV.
All-In-One Service: We bundle lease payments, insurance, rego, servicing, and even roadside assistance.
Online Calculator: Instantly estimate your potential tax savings on our website.
No GST on Your Car: Thanks to the novated lease structure, you don’t pay GST on the purchase price.
Plus, we do all the hard work - so you don’t have to stress about tax rules, paperwork, or compliance.
Looking Ahead: EV Tax in the Future
While EV tax rules may shift as adoption increases, one thing remains certain: novated leasing will continue to be one of the smartest and most tax-effective ways to drive an electric vehicle.
Whether you’re considering a compact EV for city driving or a long-range model for road trips, Easi makes it easy to drive smarter - not just cleaner.
Final Thoughts
Electric vehicle taxes across Australia can be complex, but the federal FBT exemption makes EV novated leasing one of the most powerful ways to save on your next vehicle. With Easi, you get a tax-smart solution that simplifies the process - and helps you drive into the future, faster.
Want to know how much you could save on an EV with a novated lease?
Try our savings calculator or talk to a leasing expert at Easi today.
