What about petrol-based plug-in hybrids (PHEVs)? Since they’re not fully electric, do the same government discounts still apply?

From 1 April 2025, a plug-in hybrid electric vehicle is no longer considered a zero or low emissions vehicle under FBT law. However, your employer can continue to apply the exemption if both the following requirements are met: 1) Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue using the vehicle for private use on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding. To qualify for the EV Discount, plug-in hybrid electric vehicles must have been delivered by midnight on 31 March 2025.

Can I take out a novated lease on an electric vehicle (EV)?

Absolutely! There’s actually no better way to get an EV than with a novated lease. Eligible electric cars under the government’s EV Discount don’t attract fringe benefits tax, so your entire novated lease payment can be taken from your salary before tax (which could mean you pay less tax!).

Not only that, when you use a novated lease to get an EV, there’s no upfront GST cost to you.

Plus, you get all the other benefits from taking out a novated lease, like having all your car-related expenses bundled into one regular payment.

Can I buy a charger and package it into my novated lease?

If it’s included in the cost of the car, then the charger will be bundled neatly into your novated lease payment.

Unfortunately, the current rules don’t allow third-party chargers bought separately to be bundled into a novated lease (but obviously Oly will let you know if that changes…).

Can I package the cost of my electricity with my electric car?

Absolutely! You just need to install a smart meter that can measure exactly how much electricity your EV is using or set up a dedicated in-home charger with a metering function.

Anything I need to know about dates and eligibility for the EV Discount?

The government’s EV Discount applies to eligible electric cars, provided they were leased after 1 July 2022 and cost less than the luxury car threshold of $91,387 (as of July 1, 2024).

From 1 April 2025, a plug-in hybrid electric vehicle is no longer considered a zero or low emissions vehicle under FBT law. However, your employer can continue to apply the exemption if both the following requirements are met: 1) Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue using the vehicle for private use on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding. To qualify for the EV Discount, plug-in hybrid electric vehicles must have been delivered by midnight on 31 March 2025.

I’ve heard about the government’s Electric Car Discount policy. How does that work with a novated lease?

To try to encourage more drivers to pick up an electric car, the government has dished out an exemption to the fringe benefits tax for low-emission cars valued under $91,387 (the luxury car tax threshold as of July 1, 2024).

That means when you use Oly to get into an EV, your novated lease payments can be taken entirely from your pre-tax salary, which could mean having to pay less tax.

Add an exemption to the 5% import tax for most EVs, and the fact that there is no upfront GST cost to you when using a novated lease on an EV, and you could get a shiny new electric Tesla 3 for the same cost per week as a petrol Mazda CX-5.

How do the novated lease savings for an EV compare to standard (petrol) cars?

Ordinarily, taking out a novated lease means you might end up having to pay fringe benefits tax (FBT). When you get a petrol or diesel car, Oly reduces that risk by taking some of your lease payments from your pre-tax salary and the rest after tax.

EVs under $91,387 (as of July 1, 2024) are exempt from the FBT, so Oly can take your whole payment from your pre-tax salary which could reduce your taxable income and put an even bigger smile on your face.

Can I claim the cost of using a public charger on my novated lease?

A lot of public chargers, like those at shopping centres, are free to use. For the ones that require a payment, just keep the receipts and claim them through your Oly account.

Will taking out a novated lease for an electric car impact any of my government payments or my HECS?

Oly can't give out financial or taxation advice. While eligible electric cars obtained through a novated lease are exempt from fringe benefits tax (FBT), your employer is still required to disclose the reportable fringe benefit amount (RFBA) as if the electric car was not FBT-exempt on your employee payment summary. The RFBA could impact your financial situation. Oly recommends you seek independent financial and taxation advice on what impact this could have to your personal circumstances, including how it could affect any means-tested government benefits or HECS.

Why is the government reviewing the EV Discount?

The government’s taking a magnifying glass to the current EV-novated lease incentives. They may continue them. Or alter them. Or completely end them. At the moment, it’s all a little bit up in the air. What Oly does know is that a report on the discount is due by mid-2027. It will look at:

• How the discount supports early adoption of EVs.
• If the government still needs to hand out incentives to boost EV numbers on the roads.
• If the current settings need to be tweaked. This could mean tightening FBT exemptions or even limiting the discount to certain vehicles.
• If FBT exemptions on existing leases will be honoured. For the time being, all that anyone can do is wait for the government’s verdict. Rest assured though: Oly’s keeping a close eye on proceedings. As soon as something happens, you’ll know about it.

*&^ Terms and conditions

*All eligible vehicles must be ordered before 30/06/26 (unless extended), or while stocks last. Displayed price is only available through a novated lease administered by Oly in Queensland. Government duties and charges may vary the weekly pricing in other states and territories. Weekly costs have been determined based on the following assumptions: 1) The lease is a Oly fully maintained lease, 2) A 5 year term, 3) A residual value of 28.13% of the vehicle purchase price payable at the end of term, 4) Inclusion of finance and budgeted costs for: fuel or electricity, 4 replacement tyres, maintenance, roadside assistance, registration, CTP and comprehensive insurance, 5) Gross annual salary is $90,000. 6) Vehicle purchased in QLD, 7) 15,000km per annum, 8) Salary Sacrifice using Employee Contribution Method (ECM) or Fringe Benefits Tax Exempt Method. The Fringe Benefits Tax Exempt Method is only used for eligible electric vehicles under the luxury car tax threshold of $91,387. The indicative price quoted for the novated lease is based on vehicle quotations received within the last 45 days and does not include any optional extras. Any optional extras that you choose will affect the cost of the novated lease and residual value. If you purchase the vehicle on termination of the novated lease, GST will apply on the purchase price you pay at that time. The novated lease offer is based on the assumption outlined above, and is an indicative cost approximation of the selected vehicle and model shown and the amounts may change at the time the novated lease quotation is completed and finalised. Your individual circumstances have not been taken into account as this will affect the overall weekly cost amount and the benefits of a novated lease. These specials cannot be used in conjunction with any other offer.

^ Savings shown are indicative and reflect estimated tax savings over the full-term of the lease. The total amount saved is a comparison between a novated lease based on the assumption outlined above and the purchase of a vehicle and payment of running and maintenance costs using post-tax earnings. Actual savings will depend on your personal circumstances. Oly recommends that you seek independent financial and taxation advice.

#Please note that stock levels vary from time-to-time and so certain vehicles may not be available at the time of enquiry.

Things you need to know: This general information doesn’t take your personal circumstances into account. Please consider whether this information is right for you before making a decision and seek professional independent tax and financial advice. Conditions and fees apply, along with credit assessment criteria for lease products. The availability of benefits is subject to your employer’s approval. Oly may pay and/or receive commissions in connection with its services. Actual vehicle prices are based on specific vehicle and accessories, prices and savings may vary based on additional options selected with vehicle. Oly does not act as your agent or representative in respect of the purchase or lease of any vehicle. Oly does not provide any advice or recommendations in relation to the purchase or lease of any vehicle.

Please note: The content of this page is provided to you on the condition that you undertake all responsibility for assessing the accuracy of the content. Oly gives no guarantee and accepts no liability for the quality, safety or standard of motor vehicles or parts referred to or the truth or accuracy of the information contained on this page except to the extent required by law including, but not limited to, consumer guarantees under the Australia Consumer Law. You acknowledge that any images shown on this page are for illustration purposes only and may not be an exact representation of the motor vehicle on offer. The specifications you choose may affect the price you pay.