Middle Australia embracing cheaper EV leases
Data suggests FBT-related savings on electric cars are gaining traction in the suburbsNew data from the National Automotive Leasing and Salary Packaging Association (NALSPA) suggests that middle Australia is being tempted by the Fringe Benefit Tax (FBT)-related savings on battery-electric and plug-in hybrid vehicles via novated leases.
The latest NALSPA figures show that buyers in outer ‘commuter’ suburbs are among the most likely to sign up for salary-sacrifice finance packages, which thanks to FBT and running cost savings can offset the higher purchase price of EVs.
The association’s data show outer suburbs including Werribee and Tarneit (Vic) and Kellyville, Riverstone and Baulkham Hills (all NSW) rank within the top 10 postcodes nationally for the highest uptake of EV and PHEV novated leases.
EV and PHEV sales have grown since the FBT exemption was put in place as of July 2022 and now account for more than 14 per cent of all new vehicle sales.
PHEV sales in particular were up more than 176 per cent last quarter, year on year.
NALSPA estimates around 40 per cent of all new EVs and PHEVs are now being purchased via a novated lease.
However, it will be interesting to see what happens as of April 1, 2025, when PHEVs will no longer be eligible for the exemption – just as an increasing number of brands expect to introduce a new raft of PHEV models into their respective ranges.
Cupra, Chery, Mitsubishi, Audi, Jeep, Mazda and BYD all have mass-market PHEVs on the way and the majority of them will or would have qualified for the exemption depending on their release date.
Top 10 postcodes for EV/PHEVs via novated leases:
- 3030 (Vic) Point Cook, Quandong, Werribee
- 2155 (NSW) Beaumont Hills, Kellyville, Rouse Hill
- 2602 (ACT) Ainslie, Dickson, Watson
- 2611 (ACT) Coombs, Duffy, Weston
- 3029 (Vic) Hoppers Crossing, Tarneit, Truganina
- 2765 (NSW) Box Hill, Marsden Park, Riverstone
- 4152 (Qld) Camp Hill, Carina, Carindale
- 2153 (NSW) Baulkham Hills, Bella Vista, Norwest
- 4069 (Qld) Chapel Hill, Fig Tree Pocket, Kenmore
- 2615 (ACT) Charnwood, Dunlop, MacGregor
- 4053 (Qld) Everton Park, McDowall, Mitchelton
Source: NALSPA for the period July 2022 to December 2023
Related: How the tax man can help pay for your EV
Related: FBT exemption for EVs a “game-changer” for consumers
Related: What’s the difference between hybrid, plug-in hybrid and EV?
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