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FBT Cliff

Electric car FBT calculator

What the EV exemption saves you, and how long you have

177days left to commit,
for cars $75,000–$91,661
Last day: 31 March 2027
  • Treasury draft · not law yet
  • $75,000 or less: until 31 Mar 2029

Commit by 31 March 2027

$12,240 more tax

Estimated, if you commit after 31 Mar 2027 under the draft. Estimate only. General information, not tax advice.

Breakdown
$75,000 to $91,661

Commit by 31 March 2027 to keep the full exemption.

$12,240

Estimated extra tax over a 3-year lease if you commit from 1 April 2027 instead, when the draft cuts the exemption to a 25% discount ($4,080 a year).

177 days left to commit by 31 March 2027

$85,000
$25,000$75,000$91,661$125,000+
Up to $75,000: full exemption for commitments until 31 Mar 2029$75,001 to $91,661: full exemption only if you commit by 31 Mar 2027Over $91,661: no FBT concession

Estimated tax effect by when you commit to the lease

If you commitDiscountFBT discountSaved a yearTax saved a year
By 31 Mar 2027100%$5,440
Apr 2027 – Mar 202925%$1,360
From Apr 202925%$1,360

Reportable fringe benefits: about $32,080 a year would appear on your income statement if you commit by 31 March 2027. It isn’t taxed, but income tests such as HELP repayments and the Medicare levy surcharge count it.

Estimate only. General information, not tax advice. It uses 2026–27 tax rates and the FBT statutory formula, and assumes you pay an after-tax contribution to clear any FBT. The rules for commitments from 1 April 2027 are a Treasury exposure draft, not law, and may change. Confirm your numbers with your employer, your novated lease provider or a registered tax agent.

Updated 3 Oct 2026 · every figure links to its source · Some links are referral links; that never changes the order.

Two lines decide what your car gets

A Treasury draft cuts the FBT exemption for electric cars on novated leases. Pick your car, enter your salary, and see what committing before the cut is worth, in dollars, for your lease.

Today an eligible battery electric car is exempt from FBT if luxury car tax was never payable on it, and that covers novated leases arranged through salary packaging. (ATO, checked )

The luxury car tax limit for fuel-efficient cars is $91,661 for 2026–27. (ATO, checked )

The draft keeps a full exemption for eligible cars valued at $75,000 or less where the commitment is made before 1 April 2029, and gives a 25% discount to cars over $75,000 from 1 April 2027 and to all eligible cars from 1 April 2029. (Treasury, checked )

So a car between the two lines is the one with a deadline: commit by 31 March 2027 and the lease keeps the full exemption for its whole term. Read what the draft says.

$25,000$75,000$91,661$125,000+
Up to $75,000: full exemption for commitments until 31 Mar 2029$75,001 to $91,661: full exemption only if you commit by 31 Mar 2027Over $91,661: no FBT concession

Ticks mark the cheapest variant of each model below.

Pick your model

Each model page has every variant’s price from the maker, where it sits against the lines, and what it saves at five salaries. See every variant in one list.

Every variant under $75,000

Full exemption for leases committed to by 31 March 2029 under the draft.

Between $75,000 and $91,661

Commit by 31 March 2027 for the full exemption; after that, a 25% discount.

Before you sign

  1. Ask payroll whether your employer offers novated leasing, and through which providers.
  2. Get a written quote for the exact car, with dealer delivery and options, so you know its value against the lines.
  3. Ask the provider which signature makes your commitment binding, and how long ordering and paperwork take.
  4. Check the reportable fringe benefits amount against any study loan or the Medicare levy surcharge.

Novated lease providers, listed alphabetically. We don’t rank them.

No novated lease at work?

A car subscription is the other way to drive a new electric car without buying it. You pay it yourself from after-tax income, so none of the FBT rules on this site apply, and the weekly price is the number to compare. Two subscription services list electric cars; we name them alphabetically and don’t rank them.

Questions

Is the 1 April 2027 change law?

Not yet. It is a Treasury exposure draft that was open for comment from 11 to 28 September 2026. It has to pass Parliament before it applies, and it could change. The calculator follows the draft as published and we will update it if the law changes.

Which price should I enter?

The car's value for FBT: the price including GST, dealer delivery and any options or accessories fitted when you take it, but not registration, stamp duty or CTP insurance. That usually sits between the maker's list price and the drive-away price.

My lease started before 2027. Does the change affect me?

Not under the draft, as long as the commitment stays the same. Refinancing, changing the term or residual, adding accessories that raise the payments, or changing employer counts as a new commitment under whatever rules apply on that date.

Do plug-in hybrids count?

No. New novated leases on plug-in hybrids have not been exempt since 1 April 2025, and the draft's new discounts cover only battery electric and hydrogen fuel cell cars.

If the car is exempt, why does the calculator show reportable fringe benefits?

Exempt electric cars are still reportable. The grossed-up amount appears on your income statement and counts in income tests such as study loan repayments and the Medicare levy surcharge, even though you pay no income tax on it.