Data released today by the nation's peak body for novated leasing show the electric vehicle FBT exemption has been boosting EV uptake among everyday Australians living in outer suburbs and regional centres, allowing them to afford electric vehicles they would not have bought otherwise.
The latest novated lease postcode data from the National Automotive Leasing and Salary Packaging Association (NALSPA) show that the strongest uptake of battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV) through the EV FBT exemption is occurring primarily outside of inner cities, including in:
NSW: Kellyville (2155), Riverstone (2765), Baulkham Hills (2153), Gosford (2250)
VIC: Werribee (3030), Hoppers Crossing (3029), Cranbourne (3977), Ballarat (3350)
QLD: Springfield (4300), Karana Downs (4306), Toowoomba (4350), Coomera (4209)
WA: Atwell (6164), Piara Waters (6112), Wanneroo (6065), Ellenbrook (6069)
ACT: Weston (2611), Amaroo (2914), Latham (2615), Calwell (2905)
SA: Happy Valley (5159), Coromandel Valley (5051), Mount Barker (5251)
TAS: Launceston (7250), Kingston (7050), Margate (7054)
NT: Palmerston (830), Humpty Doo (836), Howard Springs (835)
Source: NALSPA postcode data Q2 2022 - Q3 2024, postcodes within the top ten for each respective state/territory
"From Werribee to Wanneroo, ordinary Australians living in the outer suburbs are actually the people most likely to take advantage of and benefit from the discount to battery EVs and plug-in hybrids provided through the FBT exemption and novated leasing. We're also seeing strong pick up among workers living in regional centres including Ballarat and Toowoomba," NALSPA chief executive Rohan Martin said.
"The lazy stereotype of EV drivers as wealthy inner-city folk is being smashed as more motorists are purchasing electric vehicles thanks to the FBT exemption and a wider range of EV options.
"Owning and operating a car is one of the biggest household expenses for most families but removing the FBT on BEVs and PHEVs makes them more affordable and accessible. Given that there remain barriers to motorists considering EVs, without the FBT exemption in particular we would be reducing the opportunity for many ordinary working Australians to own a cleaner and more efficient vehicle that meets their transport and lifestyle needs.
"Through the FBT exemption and novated leasing, employees can typically save about $5,000 a year or more. It means a $50,000 EV could cost around the same or less to own and operate over four years compared with a $30,000 petrol or diesel car. This policy is critical in getting many more everyday working Australians into an EV than would have otherwise been the case and is actively driving Australia's journey to net zero. While the FBT exemption for BEVs remains in place, employees must act quickly if they want to take advantage of the tax savings on PHEVs before the tax exemption ends on 1 April 2025.
"Workers in the outer suburbs are benefiting from the savings of owning an electrified vehicle. They're not only saving through the FBT exemption but also cutting long-term running costs including through rooftop solar for charging. Our research shows that many of the top postcodes with high uptake of the FBT exemption also have high solar panel density.
"In addition, hybrid vehicles, together with PHEVs are accelerating in popularity, particularly in the outer suburbs. The latest industry figures show PHEV sales are up 128 per cent over the past year. Since July 2024 alone we estimate that novated leases have made up over half or more of PHEV passenger and PHEV SUV sales in the Australian market per month.
"PHEVs particularly appeal to those who frequently drive long distances but may experience range anxiety with a fully electric vehicle. They offer the ability to drive with much lower tailpipe emissions during daily commutes while also saving on fuel costs. We know that on average PHEV drivers use electric power only for two-thirds of their trip, and three in five recharge every night.
"An expanding range of PHEVs is meeting the needs and preferences of many motorists, particularly in larger vehicles that Australians favor, like dual-cabs and utes, which are harder to fully electrify. By choosing PHEVs, Australians can begin their transition to cleaner, electric driving sooner.
"The FBT exemption does more than help save everyday Australians money, it also helps save our environment as EV uptake increases. On top of this the National Vehicle Efficiency Standard coming into effect next year is set to bring in even more efficient petrol and diesel cars for Australians to choose from, helping to reduce air pollution in our communities and make further progress toward Australia's net-zero goal."
