Most people don’t realise it, but choosing a novated lease for a new electric vehicle can feel just like giving yourself a pay rise — without asking your boss for a cent.
At the Sydney International EV Show, Fleet News Group Editor Marc Sibbald explained exactly why salary packaging an EV has become one of the most powerful employee benefits in Australia. And more people are taking advantage of it every week as EVs surge in novated lease popularity.
The EV advantage: Why salary packaging saves you money
A novated lease is simple:
- You pick the new car you want.
- Your employer and the leasing company handle the payments.
- Those payments are made from your pre-tax salary.
Because you’re using salary packaging, your taxable income is reduced — and your take-home pay jumps. That’s the first step in creating an instant pay rise for yourself.
But the real magic happens when you choose an electric vehicle.
The game changer: EVs are exempt from Fringe Benefits Tax
In 2022, the Federal Government introduced the Electric Car Discount, exempting eligible EVs from Fringe Benefits Tax (FBT).
This one policy completely reshaped the novated lease market.
As Marc explained on stage:
- A $60,000 electric car can cost the same — or even less — from your take-home pay than a $40,000 petrol car.
- The difference isn’t the sticker price — it’s the FBT exemption.
- Without FBT, running an EV through a novated lease becomes significantly cheaper than financing a petrol car the traditional way.
This is why EVs like the Tesla Model Y, Tesla Model 3, BYD Dolphin, MG4, and Kona Electric dominate Australia’s novated leasing rankings.
One payment. No bill shock. Huge savings.
When you set up a novated lease, everything is bundled together:
- depreciation
- registration
- tyres
- servicing
- insurance
- electricity or fuel
- finance costs
You pay one predictable amount each fortnight. As Marc reminded the audience, no one misses the days of paying $400 for tyres or being ambushed by a major service bill. Salary packaging removes the stress and turns motoring into a manageable, predictable expense — another way it feels like a pay rise.
Real examples: How much extra money you can keep
These examples from Marc’s EV Show presentation show the power of combining novated leasing + EV + FBT exemption.
Example 1: Peugeot 308 petrol vs Peugeot e-308 electric
- Petrol 308: $489 per fortnight out-of-pocket
- Electric e-308: $423 per fortnight out-of-pocket
Savings: $66 per fortnight — over $1,700 per year
Just by choosing the EV, you keep enough money for a case of beer every fortnight — a genuine pay rise.
Example 2: Subaru Outback vs the electric Deepal “Multi Truck”
- Outback: $600 per fortnight
- Multi Truck EV: $464 per fortnight
Savings: $136 per fortnight — about $3,500 per year
That’s the equivalent of a $3,500 after-tax salary increase, simply by choosing an electric vehicle with an FBT-exempt novated lease.
Example 3: Toyota Corolla Cross vs Hyundai Inster EV
- Corolla Cross ICE: $462 per fortnight
- Inster EV: $342 per fortnight
Savings: $120 per fortnight — more than$3,000 per year
Again, the EV is the cheaper option once salary packaging is applied.
Whole-of-life costs matter — and EVs win
Marc also reminded the EV Show audience that fleets (and savvy buyers) focus on whole-of-life costs, not just sticker price.
EVs save money because:
- They’re cheaper to power (especially if you have solar).
- They need less maintenance.
- Running costs are paid pre-tax through salary packaging.
- And thanks to the FBT exemption, the total cost of ownership is dramatically reduced.
Even without incentives, EVs are already cheaper to run. With a novated lease, they become a no-brainer financial decision.
Why this is the best time ever to salary package an EV
Right now, the combination the benefits listed below means employees can dramatically reduce their weekly car costs.
- Novated lease tax savings
- Zero FBT on eligible electric vehicles
- Lower running costs
- Rising fuel prices
- Growing EV model choice
For many people, it genuinely feels like getting an extra $50–$150 back in your pocket every week.
Yes — you can even give yourself a pay rise before buying an EV
If you have:
- Rooftop solar,
- a home battery, and
- an EV,
your cost to “fuel” your car is close to zero. Marc calls this the “triple crown” — and it means some people are already enjoying thousands of dollars a year in fuel savings, even before they start their novated lease.
Thinking about a new car? Do this first.
Before you buy with cash, a car loan or redraw from your home loan, run a novated lease quote — especially if you’re considering an EV.
Many people are shocked to learn they can, upgrade to a new electric car, enjoy big tax savings, and keep more take-home pay each month —all while lowering their carbon footprint.
Ready to see how much you could save?
Whether you’re looking for a new electric vehicle, want to understand salary packaging, or just want to know whether a novated lease will give you that pay rise feeling, take a look at the 2025 Novated Leasing Guide and get a personalised quote and compare the numbers.
Most people find out very quickly that an EV novated lease delivers real savings, real financial breathing room, and a smarter way to drive a new car.
