Drive a brand-new EV.
Pay zero FBT.
Save thousands.
The Australian Government's EV FBT Exemption lets you salary package a full electric vehicle with 100% pre-tax deductions. NSP structures your package to maximise every dollar - from purchase price to running costs.
Zero Fringe Benefits Tax
Eligible full battery electric vehicles attract $0 FBT under government exemption
100% pre-tax deductions
Finance repayments, running costs and charging - all pre-tax
No GST on purchase
Your employer's GST registration removes GST from the vehicle price
No GST on running costs
Servicing, tyres, rego and charging - no GST across the lease term
Lower running costs
No fuel bills, lower servicing - EVs cost less than petrol vehicles
Eligibility
What qualifies -
and what doesn't.
Not all electric vehicles are eligible under the FBT Exemption. Here's exactly what's covered so there are no surprises when you choose your vehicle.
Eligible - zero FBT applies
Full battery electric vehicles (BEVs)
On-road costs below $91,661 (2026-27 LCT threshold)
All running costs & charging
Servicing, tyres, registration & insurance
Not eligible under this exemption
Petrol, diesel, or hybrid vehicles
Luxury EVs exceeding LCT threshold
Plug-in hybrids (PHEVs) from 1 April 2025
Employee-owned vehicles
How it works
Four steps to driving your new EV.
NSP handles every step of the process. From choosing your vehicle to your first pre-tax deduction - we manage everything on your behalf.
Choose your EV
Select a full electric vehicle that meets the eligibility criteria. NSP can help you source vehicles across our dealer network and compare models within your budget.
We source on your behalfWe structure your package
NSP designs your salary packaging arrangement to maximise pre-tax deductions across the vehicle and all running costs. Finance is lodged and approved on your behalf.
Zero paperwork for youPayroll is set up
NSP liaises with your payroll team to set up your pre-tax deduction schedule. One payment per pay cycle covers the vehicle, running costs, and insurance.
From your next pay cycleDrive and save
Your running costs are managed and paid by NSP throughout the lease. No separate bills. No fuel costs. Just your EV and your tax savings - every fortnight.
NSP manages the rest
Exclusive BYD fleet pricing. Available year-round.
Your BYD. Your Fleet Price.
We use our national fleet buying power to secure rates for our clients that can be lower than retail - giving you more value from your novated lease.
Exclusive fleet pricing
Available year-round
National buying power
Eligible BYD models
Disclaimer: Fleet pricing is available on selected BYD models and variants and is subject to availability and change without notice. Pricing may vary depending on the vehicle, specifications, delivery timing and applicable fleet terms. Ask us for current pricing and eligibility.
Ready to go electric?
Book your free Discovery Session.
We'll confirm your eligibility, model your exact EV savings, and answer every question - no obligation, no cost, 10–15 minutes.
Confidential · No obligation · No cost
⚠️ IMPORTANT DISCLAIMER
The information provided on this page is general in nature and does not constitute financial, taxation or legal advice. Eligibility for the EV FBT Exemption depends on your employer's FBT classification, individual circumstances, and current ATO rules.
All figures and eligibility thresholds are current as at the date of publication and subject to change. The Luxury Car Tax threshold for fuel-efficient vehicles for 2026-27 is $91,661 and is reviewed by the ATO annually.
EV FBT Exemption - confirmed three-phase restructure (May 2026)
The Australian Government has confirmed the EV FBT exemption will continue but will be progressively restructured as follows:
- Phase 1 - Until 31 March 2027: The current full FBT exemption continues to apply to all eligible full electric vehicles below the Luxury Car Tax threshold. No change to existing arrangements.
- Phase 2 - From 1 April 2027: The full FBT exemption applies only to EVs priced under $75,000. EVs priced between $75,000 and the Luxury Car Tax threshold will receive a 25% FBT discount only.
- Phase 3 - From 1 April 2029: All eligible electric vehicles below the Luxury Car Tax threshold will receive a 25% FBT discount only. The full exemption will no longer apply at any price point.
Existing novated leases entered into before each phase start date are grandfathered under the rules that applied at the time the lease was entered into. These changes apply to new leases only.
Plug-in hybrid vehicles (PHEVs) lost FBT exemption from 1 April 2025, except where a binding commitment was in place before that date.
NSP does not guarantee any specific tax outcomes or savings. Your actual results depend on your personal circumstances, salary, benefit selections, and the ATO's current interpretation of applicable rules. Speak with your NSP consultant for advice specific to your situation.
⚠️ Important notice
Changing employers during your lease term.
Changing employers triggers a new novated lease - and may cost you the FBT exemption. If you change employers during your EV novated lease term, the ATO treats this as a new commitment by the new employer. This means the FBT exemption for your electric vehicle will be lost - even if you move within the same corporate group. NSP strongly recommends seeking independent tax advice before changing employment during an active EV novated lease.
PHEVs - Important update from 1 April 2025
Plug-in hybrid vehicles (PHEVs) no longer qualify under the FBT exemption from this date. The exemption can continue only if: (1) the PHEV was exempt before 1 April 2025, AND (2) a financially binding commitment was in place before that date. Optional lease extensions are NOT considered binding commitments. Confirm delivery timelines with your supplier before proceeding.
National Salary Packaging ABN: 80 110 261 768 · ACL 409538