15 Jan 2026

Electric car savings won't last forever

Take advantage of the government’s electric car FBT exemption before it disappears.

The Federal Government’s electric car Fringe Benefits Tax (FBT) exemption has made it more affordable than ever to switch to an electric vehicle, potentially saving drivers thousands in tax every year just for choosing to go electric. 

With the exemption, there’s no Fringe Benefits Tax payable on eligible electric cars, so your finance payments and all your running costs can be taken from your pre-tax salary, lowering your taxable income. That could mean paying a whole lot less tax every year. But the only way to access these savings is through a novated lease. 

Why act now?

While the exemption has helped thousands of Australians make the switch to electric, it won’t last forever. The Federal Government has committed to reviewing the scheme in early 2026, so there could be a limited window to lock in these benefits.

How a novated lease works

A FleetPartners novated lease bundles the cost of your car and its running expenses into one regular payment taken directly from your salary.

For electric cars, this can include:

• Comprehensive insurance
• Charging
• Initial and ongoing registration
• Servicing and maintenance
• Replacement tyres for the life of the lease

Ordinarily, novated lease payments are taken from a combination of your pre and post-tax salary, but when you take out a novated lease for an eligible electric car:

• 100% of the payment comes form your pre-tax salary
• No Fringe Benefits Tax applies

In some cases, this means you could be driving an electric car for much less than a comparable petrol vehicle. Add the GST savings on the car and running costs that come with a novated lease, and you could save even more.

View our latest electric vehicles

What happens when the FBT exemption ends? 

Without the FBT exemption, part of your novated lease payment will need to be taken from your pre-tax salary, with the rest taken post-tax. So take advantage of the current exemption to maximise your pre-tax payments.

Why choose FleetPartners?

FleetPartners makes the entire novated leasing process simple, from setting up payments with your employer to securing a great deal on your car.

With access to a wide network of manufacturers and dealers, including Tesla, BYD, Geely, and Toyota, FleetPartners can help you find the perfect electric car at the right price.

Already have a novated lease? It could be worth considering upgrading early to take advantage of these discounts while they’re still available.

Make the switch to take full advantage of the exemption 

With the FBT exemption and more electric vehicles on the market than ever before, there’s never been a more affordable time to go electric.

Contact FleetPartners today to start your novated lease journey.