The landscape of Australian driving is shifting, and if you’ve been sitting on the fence about going electric, the 2025/2026 financial year just handed you the ultimate reason to make the jump. We’ve hit a regulatory and economic “sweet spot” that makes driving a brand-new EV more affordable than its petrol counterparts.
Here is everything you need to know about this milestone achievement in Australian car ownership.
The “Three-Way” Win: What is a Novated Lease?
Before we dive into the milestone, let’s refresh the basics. A novated lease is a three-way agreement between you, your employer, and WhipSmart.
Instead of paying for a car with your take-home pay, your employer deducts the costs from your salary before you get taxed. The result?
GST Savings: You skip the GST on the purchase price and running costs.
All-Inclusive: Insurance, servicing, registration, and tires are bundled into one lower rate.
Tax Efficiency: You lower your taxable income, leaving more money in your pocket
FBT Barrier is Gone
In the past, “perks” like a company car were hit with a 47% Fringe Benefits Tax (FBT). This tax often neutralized the benefits of a lease, making it a “break-even” scenario at best.
However, for the 2025/2026 financial year, the ATO has maintained a 0% FBT-exemption for Electric Vehicles. By removing that 47% tax overhead, the government has effectively made the EV novated lease the most cost-effective way to own a vehicle in Australian history.
A $91,387 Milestone
The real headline is the threshold. The ATO is exempting vehicles up to a pre-tax value of $91,387.
This isn’t just for “budget” models; it covers an incredibly wide range of high-performance, long-range vehicles. In fact, every single car on our Top Ten EVs of 2026 list falls comfortably within this tax-exempt bracket. You no longer have to sacrifice luxury or tech to get the tax break.
Why Now? The Data Doesn’t Lie
If you’ve heard the skepticism regarding infrastructure, it’s time to look at the 2025/2026 reality:
Adoption is Sky-High: In 2025, EV purchases reached a record 8.3% of the total market share.
Vehicle-to-Grid (V2G): Your car is now an asset. With V2G integration, your EV can store energy and sell it back to the grid during peak times, essentially paying you to stay plugged in.
Range & Infrastructure: Battery ranges are at an all-time high, and the charging network has expanded rapidly to meet the 2025 surge.
Is It For You?
Let’s be realistic: if your daily commute involves trekking across the Simpson Desert to Alice Springs, the infrastructure might still feel a bit thin.
But for the “Urban Legends”—the commuters, the weekend adventurers, and the city drivers—the stars have aligned. Between the $91k price ceiling and the 0% FBT, there has never been a more logical (or profitable) time to go electric.
