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Federal EV incentives (Australia-wide)
The most significant savings for EV buyers in 2026 come from federal policies that apply regardless of which state you live in.
FBT Exemption
Eligible zero-emission vehicles (BEVs) and hydrogen fuel cell vehicles (FCEVs) remain exempt from Fringe Benefits Tax (FBT) when provided through a novated lease. This can save drivers up to $11,000 per year in tax. Note: As of April 1, 2025, Plug-in Hybrids (PHEVs) are no longer eligible for this exemption unless they were under a pre-existing lease agreement.
Higher Luxury Car Tax (LCT) Threshold
For the 2025/26 financial year, the LCT threshold for fuel-efficient vehicles is $91,387, compared to $80,567 for other vehicles. This allows you to purchase a higher-spec EV without incurring the 33% luxury tax.
Import Tariff Waiver
The 5% customs duty remains waived for eligible electric vehicles valued below the LCT threshold, reducing the upfront "drive-away" price.
FBT exemption comparison by Novated Lease Australia
| EV (Tesla Model 3 RWD) with FBT exemption | Non-EV (Toyota RAV4 Edge AWD) no FBT exemptionn | |
|---|---|---|
Drive away price | $59,822 | $61,422 |
Weekly novated lease cost | $227.94 | $327.57 |
Total novated lease tax saving | $36,816 | $16,408.60 |
0% import tariff
The Federal Government also removed the 5% import tariff on EVs which lowers the up-front cost. Again, this discount applies to vehicles valued up to the luxury car tax threshold.
Higher LCT threshold
The luxury car tax (LCT) is an additional cost for people who buy more expensive cars in Australia. However, the LCT threshold is significantly higher for EVs than it is for non-EVs.
For the 2026/27 financial year, the LCT threshold remains at $91,387. The threshold is $80,567 for non-EVs. This means EV owners can buy more expensive cars than non-EV drivers without needing to worry about LCT.
ACT EV incentives
Emissions-Based Registration
The ACT has transitioned to an emissions-based registration system. ZEVs receive the lowest possible registration rates.
Stamp Duty Exemption
New and used ZEVs purchased in the ACT remain exempt from motor vehicle duty (stamp duty).
Sustainable Household Scheme
Eligible residents can access 3% low-interest loans (previously 0%) of $2,000 to $15,000 for the purchase of new or used EVs and charging infrastructure.
New South Wales EV incentives
Lower Registration
ZEVs and low-emission vehicles receive a concessional rate on registration. Because these costs are packaged into your lease, the lower fee reduces your weekly pre-tax deduction.
Note: The $3,000 purchase rebate and stamp duty exemptions for individual purchases ended on January 1, 2024.
Northern Territory EV incentives
Free Registration
The NT Government has extended the waiver for registration fees for new and existing BEVs and PHEVs until June 30, 2027. This zero-cost registration is a major benefit when bundled into a novated lease.
Stamp Duty Concession
A stamp duty concession of up to $1,500 is available for EVs valued up to $50,000.
Queensland EV incentives
Lowest Registration
EV registration remains the cheapest in the state (equivalent to a 1-3 cylinder vehicle), roughly $293/year. These savings are passed directly to you through your packaged running costs.
Concessional Stamp Duty
EVs incur a lower stamp duty rate of just 2% for values up to $100,000, reducing the total lease value.
Note: The $6,000 ZEV Rebate Scheme officially closed on September 2, 2024.
South Australia EV incentives
Registration Exemption
A 3-year registration fee exemption was available for new BEVs/FCEVs first registered before June 30, 2025. For leases established after this date, standard registration rates generally apply.
Note: The $3,000 purchase subsidy ended on December 31, 2024.
Tasmania EV incentives
Stamp Duty & Rebates
Tasmania’s $2,000 rebate and stamp duty waivers have concluded. However, ZEVs still benefit from lower ongoing running costs which are 100% tax-deductible under a federal FBT-exempt lease.
Victoria EV incentives
Stamp Duty Concession
EVs are exempt from the state's Luxury Car Tax and pay a flat concessional stamp duty rate of $8.40 per $200 of market value.
ZLEV Road User Charge
Following the 2023 High Court ruling, the per-kilometre road user charge for EVs has been abolished. You no longer need to budget for this in your lease running costs.
Registration Discount
The $100 annual registration discount ended on January 1, 2026.
Western Australia EV incentives
ZEV Rebate:
The $3,500 rebate for new EVs under $70,000 officially ended on May 10, 2025.
Where in Australia can I get the biggest EV incentives?
Looking solely at rebates, which give EV drivers cash back in their pocket, Queensland is leading the charge with a top rebate of $6,000 available. The Sunshine State is followed by Western Australia ($3,500) when it comes to the maximum rebate available, then Tasmania on $2,000.
New South Wales, South Australia and Victoria all previously offered rebate programs which closed in 2023.
Maximum EV rebate available
But the devil is in the detail of most of the EV incentives available. Eligibility and the benefit available varies from state to state and from one form of incentive to another.
For example, if you're buying a more expensive EV, you may save more through a stamp duty exemption and registration discount (usually based on a percentage of the vehicle's value) than a flat cash rebate.
Also consider whether you will ultimately be better off foregoing a state rebate and instead benefitting from the federal FBT exemption on eligible EVs.
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Federal Vs State EV incentives
| Novated lease with federal FBT EV incentive | Car loan with State EV rebate | |
|---|---|---|
Vehicle purchase price (Tesla Model 3 RWD) | $64,814 | $64,814 |
GST saving on vehicle purchase price | $5,791 | $0 |
Weekly cost (inc. running costs) | $214 | $379 |
Total cost over 5 years | $69,553 | $98,520 |
State government rebate | $0 | -$3,000 |
Net cost | $74,028 | $89,239 |
Difference | -$21,492 |
Combine federal and state EV incentives for maximum savings
Analysis of available EV incentives by Novated Lease Australia shows that drivers who save the most through EV incentives are those who are eligible for a combination of state and federal schemes.
For example, EV drivers in Western Australia are among the only ones eligible for a rebate from the state government AND the generous federal fringe benefits tax exemption on EVs through a novated lease.
If you're considering an EV, pay close attention to the eligibility criteria for incentives in your state. And remember, in a lot of cases, the fringe benefits tax saving available with a salary sacrifice car agreement will end up saving you far more over multiple years than a one-off state-based rebate or exemption.
If you want to find out how your electric car novated lease (with FBT exemption) could work alongside any potential state-government rebate, our expert consultants can help.
FAQ: EV Incentives in Australia 2024
What types of EV incentives are available in Australia?
In Australia, EV incentives vary by state and may include rebates on the purchase price, grants, reduced registration fees, stamp duty concessions, and discounts on charging equipment. These incentives are designed to encourage the adoption of electric vehicles.
Can I access federal incentives for electric vehicles as well as state incentives?
This depends on the specific incentives you’re looking to apply for, as well as what state you’re in. The eligibility for some state government incentives specifically excludes cars that are also eligible for a federal incentive.
How do EV incentives vary between different states in Australia?
EV incentives differ significantly across states, with some (like Queensland) offering substantial rebates. Other states (like Victoria) offer relatively few incentives for EV drivers.
Are there any incentives for installing EV charging stations at home in Australia?
Yes, several Australian states offer incentives for homeowners to install electric vehicle charging stations, including rebates and grants. These incentives aim to support the infrastructure needed for EVs and encourage their use.
How can I find out what EV incentives I'm eligible for in my state?
To discover which EV incentives you're eligible for in your state, visit your state government's official website. Our novated lease consultants can also give you information on the incentives available.
Written by
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CEO
Bevan Guest
Reviewed by
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Editor
Sean Callery
