Is switching to an EV worth it in Australia?
We've done the numbers on purchase price, fuel, insurance, tax and maintenance — so you don't have to.
The full picture at a glance
A head-to-head across every major ownership cost. Scroll right on mobile.
| Category | Petrol | Diesel | Hybrid / PHEV | Electric (BEV)⚡ Recommended |
|---|---|---|---|---|
| Avg new car price | $35,000Best | $45,000 | $48,000 | $55,000 |
| Avg used car price | $18,000Best | $22,000 | $28,000 | $35,000 |
| Fuel/energy per 100km | ~$14 | ~$12 | ~$7 | ~$3Best |
| Annual fuel cost | ~$2,800 | ~$2,400 | ~$1,400 | ~$600Best |
| Annual servicing | ~$400 | ~$450 | ~$350 | ~$180Best |
| Brake replacement | Every 3–4 yrs | Every 3–4 yrs | Every 4–5 yrs | Every 6–8 yrsBest |
| Stamp duty (NSW) | Standard | Standard | Reduced | ExemptBest |
| Luxury Car Tax threshold | $76,950 | $76,950 | $76,950 | $89,332Best |
| CO₂ emissions | 160–200 g/km | 140–180 g/km | 80–120 g/km | 0 (tailpipe)Best |
| Typical range | 600km+ | 700km+Best | 800km+ | 350–600km |
| Refuel/recharge | 5 minBest | 5 min | 5 min + overnight | 20 min (DC fast) |
| Resale trend | Declining | Declining | StableBest | Stabilising |
Cost breakdown
Purchase price & depreciation↓
New EVs carry a price premium of $10,000–$20,000 over equivalent petrol models, though this gap is closing rapidly. The good news: the used EV market has matured, with clean examples of the Tesla Model 3, BYD Atto 3 and Hyundai IONIQ 5 now available well under $40,000.
Depreciation on EVs was volatile in 2022–2023 as Tesla repeatedly cut prices, but the market has stabilised. Chinese-brand EVs (BYD, MG, GWM) hold value reasonably well. Premium EVs like Mercedes EQS and BMW iX depreciate steeply.
Key tip: The luxury car tax (LCT) threshold for fuel-efficient vehicles — including EVs — is $89,332 in 2024–25, compared to $76,950 for standard vehicles. This means popular EV models up to that price point avoid the 33% LCT, making them effectively cheaper than equivalent ICE luxury cars.
Fuel & energy costs↓
Fuel is where EVs win decisively. At current Australian petrol prices, charging at home is 4–6× cheaper per kilometre than filling up with petrol or diesel.
Annual fuel cost comparison
Public fast-charging (DC) costs more — typically 45–65c/kWh — but is still cheaper than petrol for most drivers. If you can charge 80%+ at home, your annual energy bill stays well under $1,000.
Servicing & maintenance↓
EVs have dramatically fewer moving parts. No engine oil, no timing belt, no transmission fluid, no spark plugs, no exhaust system. The main scheduled items are tyre rotation, cabin air filters, brake fluid, and wiper blades.
- Petrol car: $400–$600/year (includes oil service every 10–15,000 km)
- Diesel car: $450–$700/year (DPF cleaning, AdBlue, more complex systems)
- Hybrid / PHEV: $300–$450/year (combined but less frequent)
- Battery EV: $150–$250/year (minimal scheduled maintenance)
Brakes: EVs use regenerative braking heavily, meaning brake pads can last 6–8 years vs the typical 3–4 years in a petrol car.
Battery warranty: Most manufacturers warrant EV batteries for 8 years / 160,000 km to at least 70% capacity. Real-world degradation in modern batteries is typically 1–2% per year.
Registration & on-road costs by state↓
Stamp duty exemptions and state rebates can significantly reduce the upfront cost of an EV. Here's the current picture across Australia:
| State | EV Stamp Duty | Rebate Available | Road-User Charge |
|---|---|---|---|
| NSW | Exempt up to $78,000 | — | 2.5 c/km |
| VIC | Exempt | — | 2.8 c/km |
| QLD | Exempt up to $100,000 | $3,000 | None yet |
| WA | Exempt up to $70,000 | — | None yet |
| SA | Exempt up to $68,750 | $3,000 | None yet |
| ACT | Exempt | — | None yet |
| TAS | Standard | — | None yet |
| NT | Standard | — | None yet |
Tax & incentives
FBT exemption, state rebates, and the luxury car tax
FBT exemption — the biggest tax break most people miss
Under the Electric Car Discount Act (from 1 July 2022), eligible EVs provided through a novated lease are exempt from Fringe Benefits Tax. This means your employer can pay for your EV — including fuel, registration, insurance and servicing — from your pre-tax salary.
Example calculation — $65,000 EV, $120,000 salary
FBT exemption applies to eligible battery EVs and PHEVs under the LCT threshold ($89,332 in 2024–25). PHEVs must be first held and used on or after 1 April 2025 to remain eligible.
State rebates at a glance
QLD
$3,000
on EVs under $100k
SA
$3,000
on EVs under $68,750
NSW
Stamp duty
exempt under $78k
ACT
Stamp duty
fully exempt
Last updated: 1 March 2025. Incentives change frequently — always verify with your state government or dealer.
EV insurance — what to expect
EVs typically cost more to insure than petrol equivalents. Here's why.
- •Repair costs are higher — EV body panels often require specialist workshops and some parts have longer lead times.
- •Battery replacement risk — while batteries rarely fail, insurers price for the low-probability, high-cost scenario.
- •Higher purchase price — insurance is partly based on vehicle value, so a $55k EV costs more to insure than a $35k petrol car.
- •The gap is closing — as EV repair networks mature and more insurers compete for EV business, premiums are falling.
| Vehicle type | Avg annual premium | Notes |
|---|---|---|
| Petrol / Diesel | $1,200–$1,600 | Mature repair network, stable pricing |
| Hybrid / PHEV | $1,300–$1,700 | Slightly higher due to complex drivetrain |
| Electric (BEV) | $1,600–$2,200 | Falling as EV repair capability grows |
Your personal EV savings calculator
Plug in your actual numbers — km driven, fuel price, charging costs, trade-in value — and see exactly what switching to an EV means for your wallet.
Your current car
Your potential EV
FBT exemption eligible?
Novated lease / employer benefit
Your estimated 5-year saving
$23,705
(still paying back — adjust inputs below)
1 year
-$32,741
3 years
-$28,223
5 years
-$23,705
10 years
-$12,410
Annual breakdown
EVs typically cost more to insure
Cumulative net position (10-year view)
Breakeven beyond 10 years — consider increasing km driven or checking your inputs.
Based on your inputs, switching to an EV could save you $2,259 per year in running costs compared to your current petrol car. After your trade-in, the net cost to switch is $35,000, meaning you'd break even in approximately 15 years and 6 months. Over 5 years, your net position would be -$23,705.
New EV vs used EV — which is right for you?
New EV
Pros
- ✓Full manufacturer warranty (5–7 years vehicle, 8 years battery)
- ✓Latest technology, range and charging speeds
- ✓Eligible for all current state incentives and FBT exemption
- ✓Dealer support and service network coverage
Cons
- ✗Higher purchase price ($45k–$100k+)
- ✗Longer breakeven period
- ✗Depreciation in first 2–3 years
Used EV
Pros
- ✓Much lower entry price ($18k–$35k for quality examples)
- ✓Faster breakeven on running cost savings
- ✓First owner absorbed the depreciation hit
- ✓Good battery health on well-maintained examples
Cons
- ✗Shorter remaining warranty
- ✗May have older charging technology (slower DC speeds)
- ✗Less range than newer models
- ✗Get a battery health check before buying
The verdict
An EV makes sense if...
- ✓You drive 12,000+ km per year
- ✓You have home charging (garage or driveway with power)
- ✓You can access a novated lease / FBT exemption through work
- ✓Your current car is worth $15k–$30k as a trade-in
- ✓You live in NSW, VIC, QLD, WA, SA, or ACT (better incentives)
- ✓You want to reduce your carbon footprint
Stick with petrol/diesel if...
- ✗You drive under 8,000 km/year (savings are minimal)
- ✗No home charging option and you rely on public chargers
- ✗You regularly tow heavy loads or drive very long rural routes
- ✗You need a vehicle under $25,000 (EV options limited)
- ✗You plan to sell in 1–2 years (breakeven not achieved)
Our take
For most Australians who drive 12,000+ km/year and have access to home charging, an EV will save money over 5–7 years even before considering FBT benefits. The technology is mature, the charging network is solid in metro areas, and the resale market has stabilised. If you can stretch to a used model under $35,000, the breakeven drops to 3–4 years. The main reasons to wait: you need towing capacity (ute-EVs are coming but expensive), you have no home charging, or your budget is under $25,000.
Frequently asked questions
Is an EV cheaper to run than a petrol car in Australia?+
How long does it take to break even on an EV in Australia?+
Are EVs cheaper to insure than petrol cars in Australia?+
Do EVs qualify for stamp duty exemption in Australia?+
What is the FBT exemption for EVs?+
Are EVs more expensive to service than petrol cars?+
How much does it cost to charge an EV at home in Australia?+
What is a road-user charge for EVs in Australia?+
Should I buy a new or used EV?+
What is the real-world range of EVs available in Australia?+
Last updated: 1 March 2025. Information is general in nature. Always verify current incentives and costs before making a purchase decision.