Top EVs under $75,000 to lease in 2027

The $75,000 threshold: Why it matters from 1 April 2027

The Australian Government’s proposed changes to the electric car discount introduce a key dividing line for novated leases starting on or after 1 April 2027. Under the updated policy structure, the full 100% FBT exemption will be restricted to zero-emission vehicles valued at $75,000 or less.

While EVs priced between $75,001 and the luxury car tax (LCT) threshold will transition to a 25% FBT discount for new agreements, vehicles sitting beneath $75,000 will continue to receive the full tax exemption through to 31 March 2029.

This makes the sub-$75k segment the sweet spot for maximizing weekly take-home pay savings through a novated lease on an EV.

Best electric vehicles under $75,000 to consider

1. Tesla Model Y & Model 3 (Rear-Wheel Drive)

Australia’s best-selling electric vehicles remain firmly within reach. The entry-level Rear-Wheel Drive variants of both the Model 3 sedan and Model Y SUV sit comfortably under the $75,000 limit, offering proven software integration, access to the Supercharger network, and strong resale value.

2. BYD Sealion 7 & Atto 3

BYD continues to expand its local portfolio with well-equipped, value-driven models. The Atto 3 compact SUV and the larger Sealion 7 electric SUV both provide Blade Battery durability, generous interior space, and comprehensive safety suites at price points well below the cap.

3. Kia EV3 & EV5

Kia’s dedicated E-GMP-derived family crossovers offer two distinct options under $75,000. The compact EV3 delivers up to 604 km of WLTP driving range on Long Range variants, while the boxy, mid-size EV5 focuses on family practicality, flat-folding cargo space, and competitive driveaway pricing.

4. Hyundai IONIQ 5 (Standard Range & DYNAMIQ)

Select grades of Hyundai’s futuristic crossover slip under the threshold. Featuring rapid charging architecture, spacious lounge-like cabins, and Vehicle-to-Load (V2L) capability, the entry and mid-tier trims allow drivers to access premium styling with full salary packaging tax benefits.

5. MG S6 EV & MG4

MG offers some of the most accessible entry points into electrified motoring. From the nimble, award-winning MG4 hatchback to the mid-size MG S6 EV family SUV, every variant sits well below $75,000, ensuring maximum tax deductions and low weekly outgoings.

6. Leapmotor B03X & C10

Backed by Stellantis, Leapmotor delivers aggressive price benchmarks. With the B03X compact SUV starting under $30,000 and the larger C10 mid-size SUV positioned under $50,000, both models provide modern tech and rapid charging while keeping pre-tax salary deductions to a minimum.

How the novated lease savings add up under $75,000

When you salary package an EV valued under the $75,000 threshold on or after 1 April 2027, you unlock the maximum tax advantages available under Australian law:

1. 1. 100% Pre-Tax Deductions: Your finance payments and bundled running costs—including home and public charging, tyres, comprehensive insurance, servicing, and registration—are paid entirely from your gross salary before income tax is calculated.
2. 2. Zero Fringe Benefits Tax (FBT): Because the vehicle qualifies for the full exemption, you do not need to make post-tax employee contributions under the Employee Contribution Method (ECM) to offset tax liabilities.
3. 3. Upfront & Ongoing GST Savings: You avoid paying the 10% GST on the vehicle purchase price (up to the statutory limit) and pay zero GST on all ongoing maintenance, charging, and replacement tyres.
4. 4. Lower Taxable Income: Deducting substantial motoring expenses prior to tax assessment reduces your overall taxable wage, boosting your take-home pay each pay cycle.

Locking in your lease

If you are planning to lease an electric vehicle valued under $75,000, you will continue to enjoy the full FBT exemption for new agreements entered into before 31 March 2029. However, for vehicles priced above $75,000, leases must start before 1 April 2027 to retain the 100% exemption under grandfathering rules.

To see how much you can save each week on an eligible electric vehicle, run your numbers through our Novated Lease Calculator or speak with our salary packaging specialists today.