Here’s what to know about the government’s EV discount review.
Quick history lesson: ahead of the 2022 Federal Election, Anthony Albanese’s Labor Party promised to supercharge electric vehicle (EV) uptake. Just how were they going to achieve this? By bringing in financial incentives for eco-friendly cars.
It must’ve been something that Aussies liked the idea of, because Labor was elected. Rather than just being an empty campaign promise, the Electric Car (EV) Discount Bill – became law in December 2022, and because of the Fringe Benefits Tax (FBT) exemptions, Aussie drivers could now pay for an eligible EV entirely with their before-tax salary.
Key takeaways
As big fans of EVs – they’re fun to drive and good for Mother Nature, what’s not to love? – Oly has been helping Aussie workers get behind the wheel. But now, more than four years after the law was brought in, the EV Discount is being reviewed. Here’s what you need to know.
EV popularity goes into overdrive
There’s no doubt that Aussies have grown to love their EVs. The number of models available here has taken an almighty leap from 56 in 2022 to over 160* today. They’re also nabbing market share over the traditional petrol-powered car, accounting for 12% of new-car sales by the end of 2025** If you ask Oly, there’s no doubt this popularity is at least in part thanks to the government making EVs more budget-friendly.
What the government’s review means for you
Which brings us to today, and the EV Discount being under review. While the government are due to report by mid-2027, the incentive can be changed, continued or wrapped up at any time during this window. The government will look at:
- The role of the Discount in helping with the early adoption of EVs.
- If they still need to offer financial sweeteners to drive EV uptake
- Whether the existing settings need to be tweaked (for example, whether FBT exemptions will be tightened or limited)
There’s no word yet on whether FBT exemptions on existing leases will be honoured until the end of the lease period. But rest assured Oly’s monitoring the situation closely. And once something’s announced, you’ll know about it quick-smart.
Good news: an EV might be cheaper than you think
Has the threat of the EV discount ending lit a proverbial rocket under you? An electric-powered vehicle might be more affordable than you think. The avalanche of new models – along with the EV discount – have been a complete game changer. In 2022, there were only two EVs retailing for under $40,000. Today, there are around 10 – with one model (the BYD Dolphin Essential) coming in at below $30,000.
If you’d like to learn more about how an EV on novated lease could work for you, you’re in the right place. With Oly, you can select your desired EV and crunch the numbers in our handy calculator, or call us on 1300 328 182.
* Treasury (Chalmers/Bowen media release): https://minister.dcceew.gov.au/bowen/media-releases/joint-media-release-electric-car-discount-review
** Electric Vehicle Council State of Electric Vehicles 2025: https://electricvehiclecouncil.com.au/wp-content/uploads/2025/10/State-of-EVs_2025_141025-2.pdf
*** EV Council blog ‘Electric Vehicle Sector Urges Government Not to Hit the Brakes on Electric Car Discount’ (incl. link to EVC’s submission to the Fed Gov’s statutory review of the Electric Car Discount): https://electricvehiclecouncil.com.au/media-releases/electric-vehicle-sector-urges-government-not-to-hit-the-brakes-on-electric-car-discount/
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Things you need to know
From 1 April 2025, a plug-in hybrid electric vehicle will not be considered a zero or low emissions vehicle under the FBT legislation. However, you can continue to apply the exemption if both the following requirements are met:
- Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue providing private use of the vehicle 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 be delivered by midnight on 31 March 2025. Due to high demand and stock limitations there may be some vehicles that do not meet the delivery deadline for the EV Discount. Customers are advised to confirm delivery timelines before proceeding with their order.
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