March 2027 deadline looms for mega discount on premium EVs
By Sean Callery — Editor
5 min read
What’s changing on 1 April 2027 for new premium EV novated leases?
Starting from 1 April 2027, there’s going to be a phased reduction in the FBT exemption on EV novated leases. Specifically, new leases on EVs priced above $75,000 that were previously eligible for a full FBT exemption will instead only qualify for a 25% FBT discount from 1 April next year.
In other words, if you want to get the FBT exemption on a more premium EV that’s currently eligible, you have until 31 March 2027 to start the lease. If you get in ahead of the deadline, you’ll keep the full FBT exemption for the duration of that lease. If you miss the deadline, there’ll still be a discount, but a reduced one.
Remember, to be eligible currently, the vehicle needs to be fully electric and valued below the luxury car tax (LCT) limit for fuel-efficient vehicles, which is $91,661 for the 2026/27 financial year.
What’s the benefit of getting my vehicle before 1 April 2027?
For novated leases on EVs valued between $75,001 and $91,661 (the current LCT threshold), there’s a significant additional saving available for drivers who start their lease by 31 March 2027.
That’s because the lease will be fully exempt from FBT for the life of the agreement, so typically up to five years. During that time, the entire lease cost, including eligible running costs like charging and insurance, can be paid for using pre-tax salary. This makes it a particularly cost-effective way to drive a premium EV.
Without the FBT exemption, part of the novated lease payments would need to be made using after-tax salary to offset the tax, which means there won’t be as much of an overall saving.
To give you an idea, consider a Hyundai IONIQ 5 N Line Premium AWD. Because this vehicle would only be eligible for a 25% FBT discount after 1 April 2027, a driver could save around $101 per week (or $5,252 over a year) over a five-year lease if they were to start their lease before the 31 March deadline.
That’s just an estimate and assumes a driver earning $150,000 a year and driving 15,000km annually. The actual cost difference would depend on the vehicle and your specific situation and driving habits.
Top 10 premiums EVs that will lose their FBT exemption on 1 April 2027
The table below compares the estimated weekly cost of a novated lease on 10 popular EVs that are expected to lose their fully-FBT-exempt status from 1 April 2027. These are vehicles currently priced between $75,000 and the LCT threshold, meaning they will qualify for a 25% FBT discount instead of a full exemption after the change. Of course, if prices change between now and 1 April, that could impact how these vehicles are impacted.
¹Vehicle price is the manufacturer’s list price including GST, plus dealer delivery for NSW. It excludes stamp duty, registration, CTP, optional extras and promotional offers. This is the value used to test eligibility for the FBT concession. Prices were sourced from manufacturer websites on 23 October 2026. ²Weekly costs are the estimated reduction in take-home pay, assuming a $150,000 salary, 15,000 km a year, a five-year lease and NSW registration, with finance, charging, insurance, maintenance, tyres, registration and CTP included. Costs before 1 April 2027 are sourced from Novated Lease Australia’s calculator on 23 October 2026. ³Costs from 1 April 2027 are estimates only. They assume the same lease and running costs, with post-tax contributions under the employee contribution method that offset the FBT (including GST on those contributions), and FY 2026/27 income tax rates plus the Medicare levy. The changes were announced on 5 May 2026 but haven’t yet been legislated, so the final rules and actual quotes may differ. ^Estimated price, as the dealer delivery fee isn’t published separately. Find personalised estimates with our Novated Lease Calculator.
When will I need to order my vehicle to make sure I get in before the 31 March 2027 deadline?
If you want to be sure of securing a premium EV with a full FBT exemption, the sooner you order your vehicles, the better. You will likely need to have taken delivery of the vehicle and started the lease by 31 March 2027 in order to qualify for the FBT exemption. Just having ordered your vehicle may not be enough,
Depending on the model, delivery times may be extended in the lead up to the FBT cutoff as there’s a possibility of a surge in demand from other drivers with exactly the same idea as you. Delivery times on premium models can be particularly extended in some cases.
If you’re looking for guidance, talk to a novated lease consultant about your options and timings.
About the expert
Sean Callery - Editor
Sean is an editor and finance journalist. He has over 15 years of international experience covering consumer affairs, lending and personal finance.
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