EV FBT Exemption Changes 2027 · 1 April 2027
Is your next EV on the wrong side of $75k?
From 1 April 2027, electric cars over $75,000 lose most of the FBT exemption that makes them so cheap on a novated lease. Plenty of popular EVs sit just over the line, often by a trim or a paint colour. Get your keys by 31 March and you keep the tax break for the whole lease.
Over $75k? Time to get your keys
That's about 12 fortnightly pays until 31 March 2027. New models and popular colours can take months to arrive, so the conversation starts now, not in March.
What's changing
The EV FBT exemption, explained properly.
Since July 2022, eligible battery electric cars on a novated lease have been fully exempt from fringe benefits tax (FBT). It's known as the Electric Car Discount, and it's the main reason EVs have been the best-value cars to lease.
FBT is the tax that normally applies when your employer provides a benefit, like a car. No FBT means the whole lease, running costs included, can come out of your pre-tax salary, so your take-home pay goes further.
On 5 May 2026, the Federal Government announced the exemption will wind back in two steps. EVs over $75,000 go first, from 1 April 2027. Every EV follows from 1 April 2029. Either way, the full exemption becomes a 25% discount on FBT. That means three-quarters of the FBT comes back.
The good bit: your lease keeps the rules it started with, for its whole term. Start before a change and the change doesn't touch you.
What your lease locks in
Based on the day your lease starts and the car's price.
Above $91,661 (the 2026–27 fuel-efficient luxury car tax threshold), EVs don't get the exemption at all. Plug-in hybrids lost it from 1 April 2025.
What it actually costs
Same Model Y L in silver. Same salary. One date apart.
Lease starts by 31 March 2027
$223/wk
Lease starts from 1 April 2027
$323/wk
$100 a week more for the same car. That's $5,200 a year, or $26,000 over a five-year lease. Estimated cost to your take-home pay, locked in for the life of the lease.
Work backwards from 31 March
The deadline is the day you get the keys.
Your lease starts when the car is delivered, not when you order it. Once it starts, its tax rules are locked in for the full term.
01.
Get a quote and sign off
Pick the car and trim. We'll price it with your options, so you know which side of the line it sits, and get approval and sign-off sorted.
02.
Wait for the car
In-stock cars can be quick. New models and popular colours can take months. The earlier you ask, the earlier you know your availability.
03. By 31 March 2027
Keys in hand
Delivery starts the lease and locks in today's tax rules for the full term, up to five years.
Check your car
Which side of the line is your car on?
The $75k is the cost of the car including GST and options. Stamp duty and registration don't count. Paint, wheels, the bigger battery, the faster charge: they all do.
Price of the car, with options
Or try a popular one
Get your keys by 31 March 2027 to keep the tax break.
Start your lease by 31 March 2027 and you pay no FBT for the whole term. From 1 April, a new lease on this car only gets 25% off FBT. On popular models that's roughly $95–$115 a week more.
Get a Quote on this CarPopular EVs near the line · list price
A trim or a paint colour can tip it over.
Tesla Model Y
+$100/wk from AprilSkoda Enyaq
+$95/wk from AprilPolestar 2
+$100/wk from AprilBMW iX1
+$100/wk from AprilPolestar 4
+$100/wk from AprilKia EV6
+$105/wk from AprilMercedes EQA
+$105/wk from AprilTesla Model 3
+$105/wk from AprilVolvo EX40
+$105/wk from AprilAudi Q4 e-tron
+$110/wk from AprilBMW i4
+$115/wk from AprilBMW iX3
+$115/wk from AprilCan a better deal pull it under? Ask us. Our buying team often get prices the public can't, and we'll tell you straight which side of the line you'll land on.
FAQs
Good questions.
Has this change become law yet?
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Not yet. The Federal Government announced it on 5 May 2026 and it still needs to pass Parliament. We'll update this page as it progresses.
Does this affect my existing EV lease?
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No. A novated lease keeps the tax rules it started with for its whole term. If your lease is already running, nothing changes for it.
Is it the order date or the delivery date that counts?
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The delivery date. Your lease starts when the car is delivered, not when you order it, so a car ordered in February that arrives in April misses the deadline.
What counts towards the $75,000?
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The cost of the car including GST and any options or accessories fitted at purchase. Stamp duty and registration don't count. Paint, wheels, a bigger battery and faster charging all do.
My car's under $75k. Can I relax?
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Until 31 March 2029, yes. Just price it with the options you actually want, because they all count toward the cutoff. Leases on any EV starting from 1 April 2029 get 25% off FBT rather than none.
What does “25% off FBT” actually mean?
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Instead of paying no fringe benefits tax, you'd pay three-quarters of the normal amount. It's still better than a petrol car, but most of the reason an EV is so cheap on a novated lease is gone.
What about EVs over $91,661?
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EVs priced above the fuel-efficient luxury car tax threshold ($91,661 for 2026–27, indexed each year) don't get the FBT exemption now, and won't under the new rules either. A novated lease can still save you money. We'll show you how much.
What about plug-in hybrids?
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Plug-in hybrids lost the FBT exemption for new leases from 1 April 2025. Leases that started before then keep it.
Can a better price bring my car under $75k?
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Sometimes. Our buying team often get prices the public can't. Ask us and we'll tell you straight which side of the line you'll land on.
Find out which side of the line your next EV will be on.
Pick a car and the calculator shows your weekly cost and tax saving. Got one in mind that's just over? Tell us. We'll price it with your options and tell you how long delivery will take.
Results take ~5 seconds. No commitment.
Already bought a car? You can lease the one you've got too. Just ask.
Applies to eligible battery electric cars on a novated lease. Plug-in hybrids lost the exemption from 1 April 2025. Thresholds are the cost of the car including GST and options, excluding stamp duty and registration. The $91,661 cap is the 2026–27 fuel-efficient luxury car tax threshold and is indexed each year. Weekly figures are estimates and depend on your salary, state, the exact car and its options. Delivery times vary by model, colour and stock. Changes announced 5 May 2026 and still need to pass Parliament. General information only, not tax advice.