April fools day 2025 PHEV changes
Plug-In Hybrid Electric Vehicle (PHEV) incentive ending soon
Get in quick to secure the discount
Important changes coming to the PHEV discount
The fringe benefits tax (FBT) exemption for plug-in hybrid electric vehicles (PHEVs) will end on 31 March 2025
- For new leases: To take advantage of the current FBT exemption, your new PHEV lease must be fully settled and delivered before 31 March 2025.
- For existing leases: Making changes to your lease after 1 April 2025, such as refinancing, extending the lease term, pausing due to unpaid leave or changing employers will mean your PHEV will no longer qualify for the FBT exemption. If you’re considering refinancing, transferring your lease, or starting a new one, now is the time to act. Refinancing before 1 April 2025 could help lock in the FBT exemption for the remainder of your lease term.
For more details on the change read our FAQ below.
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Don’t miss out on these limited-time-only PHEV deals
Mitsubishi Outlander
Mitsubishi Outlander PHEV Exceed ZM 2.4L AWD
- From $229 per week
- Tax savings $36,852
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Cupra Formentor
Cupra Formentor PHEV
Additional discounts on top of already reduced fleet prices.
- From $213 per week
- Tax savings $34,148
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Volvo XC-60
Volvo XC-60 PHEV
Under the luxury car tax.
- From $311 per week
- Tax savings $50,133
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Mitsubishi Eclipse
Mitsubishi Eclipse Cross ES PHEV AQD
Additional $2,000 discount.
- From $177 per week
- Tax savings: $28,337
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*Prices will vary by state. Vehicle pricing is based on a $100,000 salary, 75,000 kms travelled over a 60 month lease with ATO standard residual. Budgeted running costs for fuel/charging, tyres, maintenance, insurance, registration and CTP.
Download our free magazine on the 2025 FBT changes
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Your questions answered about the FBT changes
Learn more about the upcoming changes and how they will impact PHEV novated leases. Our expert consultants can also answer any questions, so you can sign up with confidence.
Find my best dealWhat is changing with the Fringe Benefits Tax (FBT) exemption for PHEVs?
The FBT exemption for PHEVs will end on 31 March 2025. After this date, PHEVs will no longer qualify for FBT exemptions under novated lease agreements unless the lease is settled before this deadline.
The FBT exemption on eligible fully-electric vehicle novated leases will continue unchanged beyond 1 April 2025.
How does this impact new PHEV leases?
If your PHEV novated lease is settled on or before 31 March 2025, you can still benefit from the FBT exemption until the end of the lease term. However, leases settled after this date will not qualify for the exemption, which may increase the overall cost of your lease.
What does "settled" mean in this context?
For a lease to be considered settled, all documentation and financial approvals must be completed, and the lease must be fully executed by 31 March 2025. Simply having a contract of sale or approval in place is not sufficient.
How does this affect existing PHEV leases?
If your PHEV novated lease was settled before 31 March 2025, you can retain the FBT exemption until the end of your current lease term.
However, certain changes to your lease after 1 April 2025 – such as refinancing, extending the lease, taking unpaid leave, or changing employers – may result in the lease becoming subject to FBT. This could impact the overall cost of your lease and may require a reassessment of your running costs and benefits moving forward.
What should I do if I’m considering refinancing or extending my lease?
Refinancing or extending your lease before 1 April 2025 can allow you to retain the FBT exemption for the remainder of the lease term. It’s essential to review your lease terms and speak to a financial adviser to understand how these changes might affect you.
What if I need to take unpaid leave or change employers?
Taking a break from your lease or transferring your lease due to a change in employment after 1 April 2025 may result in the PHEV becoming subject to FBT. If you anticipate such changes, we recommend seeking advice on how to minimise potential impacts.
How do I know if my lease will be affected?
If you have questions about your specific situation, contact our customer service team or your leasing specialist. We will help review your lease terms and give general guidance on the best course of action.
What happens if I settle a new lease before the deadline?
If your new lease is settled before 31 March 2025, you’ll continue to benefit from the FBT exemption for PHEVs until the lease term ends. Ensure you allow enough time for approvals and processing to meet this deadline.
Who should I talk to about these changes?
It’s important to speak with your financial adviser and our team to fully understand how these changes impact you. We’re here to help you navigate your options and make informed decisions.
What if my employer changes leasing providers after 1 April 2025?
As there will be no change to the Novation Agreement, the terms of your lease is not altered and hence, your PHEV will still continue to be FBT exempt
What if I change jobs and my new employer uses the same leasing provider?
A new Novation Agreement will need to be signed by your new employer, making this an alteration of the terms of your lease. As such, your PHEV may become subject to FBT.
What if the PHEV I have on lease is replaced after a total loss accident?
This will require an Asset Substitution form to be completed but does not require a new Novation Agreement, therefore your (new) PHEV will continue to be FBT exempt until the current lease term ends.
Novated lease guides
Need more information? Read our easy-to-understand novated lease guides.
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