Statistics from National Automotive Leasing and Salary Packaging Association (NALSPA) have confirmed that the FBT Exemption on electric cars is driving demand with novated buyers.
In the latest available figures for Q3 2023, 39.8% of new novated lease orders were for an EV compared to only 4.3% in Q3 2022. NALSPA estimates that more than 35% of all new BEV/PHEV sales (SUV and passenger) in the Australian market were via a novated lease arrangement, ostensibly courtesy of the FBT exemption.
These figures confirm that the Federal government policy (Electric Car Discount Bill) appears to be having the desired impact of steering new car buyers towards zero and low emission vehicles.
Rohan Martin, CEO at NALSPA, believes the FBT Exemption has been a driver of EV sales and it makes electric cars more accessible and affordable to more people.
“We estimate that novated leasing is responsible for around about 10% of all new car sales in Australia,” says Martin. “It’s an important driver of volume through the auto sector. And the 10% estimate was prior to the FBT exemption, so potentially that that number may now be north of 10%.
“It’s a driver and it means novated leasing makes vehicles more affordable for everyday Australians so they’re able to consider a newer vehicle, potentially, on what they otherwise would be able to afford.”
“A vehicle that’s affordable potentially means safer as well. And we say that the cost of living crisis that we are facing as a country, is also driving greater interest in novated leasing as people look for additional ways to help save on their on their household costs, particularly their transport costs, which for the majority of households is probably their second largest cost.”
“So off the back of the FBT Exemption, and also these cost of living challenges, we’re seeing a greater level of interest and appetite for novated leasing and also seeing more employers becoming open to offering novated leasing as well.”