Federal FBT exemption: the biggest incentive most people miss
The federal government's Fringe Benefits Tax (FBT) exemption for eligible electric vehicles is arguably the most valuable financial incentive available to Australian EV buyers — and it's widely underutilised. If you salary sacrifice an EV through a novated lease arrangement with your employer, you may pay zero FBT on the benefit, provided the car's value is below the luxury car tax threshold (around $89,332 for fuel-efficient vehicles in 2024–25). The combined tax savings from GST, income tax, and FBT elimination can reduce the effective cost of an EV by $15,000 to $30,000 or more over a three-year lease, depending on your income bracket. The exemption covers battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) first held and used on or after 1 July 2022. To access this benefit, you need an employer willing to set up a novated lease arrangement — most larger employers offer this through providers like SG Fleet, Maxxia, or Flare.
State and territory rebates
Beyond the federal FBT exemption, several states offer additional cash rebates or interest-free loans for EV purchases. Queensland currently offers a $3,000 rebate for new zero-emission vehicles priced below $68,000, available to Queensland residents who purchase through an authorised dealer. South Australia offers a similar $3,000 rebate for new BEVs under $68,001. The ACT has a zero-interest loan scheme of up to $15,000 for eligible EV buyers, repaid over five years through an additional charge on your rates. Victoria and NSW have wound back their direct cash rebate programs but continue to offer stamp duty exemptions. Western Australia, Tasmania, and the Northern Territory have more limited incentive schemes, though the federal FBT exemption applies nationwide.
Stamp duty exemptions by state
Stamp duty on vehicle registration is a significant cost that varies by state and can add thousands of dollars to the purchase price of a new car. Several states now fully or partially exempt EVs from stamp duty. The ACT and Victoria exempt zero-emission vehicles from stamp duty entirely on eligible purchases. NSW offers a $3,000 rebate that effectively offsets stamp duty on eligible EVs. Queensland and South Australia have not introduced stamp duty exemptions as of early 2025, though lobbying from the electric vehicle industry is ongoing. For a $65,000 EV in Victoria, stamp duty would typically be around $2,000 — so the exemption represents a meaningful saving on top of other incentives.
How to stack incentives for maximum saving
The real opportunity for savvy EV buyers is stacking multiple incentives. A buyer in Queensland using a novated lease could benefit from: the federal FBT exemption (eliminating FBT on the leased vehicle), GST savings through the novated lease structure, the Queensland $3,000 state rebate, and lower running costs compared to a petrol equivalent. Combined, these incentives can reduce the effective cost of a $65,000 EV to well under $50,000 over a three-year lease period when tax savings are factored in. The key is working with a knowledgeable novated lease provider and a financial adviser who understands the EV incentive landscape. etricauto's finance calculator can help you estimate your savings based on your specific circumstances.
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