⚡ Summary — Why an EV Novated Lease Stands Apart

No FBT

Qualifying BEVs under $91,387 are fully FBT-exempt. The employer has no FBT liability to pass on.

No ECM Post-Tax Contribution

Because there is no FBT, no post-tax ECM contribution is required. The employee's payslip has only one deduction — the pre-tax lease amount.

Full Tax Saving Retained

The entire income tax saving from the pre-tax deduction flows directly to the employee — not partially offset by a post-tax contribution as with a standard car.

Watch the Threshold

If the EV's drive-away price exceeds $91,387, the FBT exemption is lost entirely and standard FBT rules apply — including ECM requirements and potential LCC charges.

⚠️Important Disclaimer

This guide is intended as a general educational overview only and does not constitute financial, taxation, or legal advice. Information has been prepared for illustrative purposes for Australian employees in the 2025–26 financial year based on ATO guidelines current at time of preparation.

Tax outcomes will vary depending on individual circumstances including income level, vehicle type, lease structure, and employer policies. All figures in examples and the calculator are estimates only. The FBT exemption for EVs is subject to legislative change — employees should confirm current eligibility with a qualified adviser.

Before entering into a novated lease arrangement, the employee is strongly encouraged to seek independent advice from a registered tax adviser, financial planner, or qualified novated lease specialist.

📅 Current as at 2025–26 financial year

📋 FBT statutory rate: 20% · FBT rate: 47%

ℹ️ General advice only — not a substitute for professional advice