Australia's Fuel Resilience Package and Your Novated Lease
The Albanese Government's $14.8B fuel security Budget package could affect running costs for novated lease drivers. Here's what we know so far.
On 12 May 2026, the Federal Government announced a $14.8 billion Fuel and Resilience package in the Budget, aimed at securing more fuel supply, stabilising prices, and insulating Australian households from future fuel shocks — partly in response to ongoing conflict in the Middle East weighing on the economy. The package includes a $7.5 billion Fuel and Fertiliser Security Facility to lock in international fuel supply, alongside broader measures targeting affordability and supply chain resilience (according to the Treasury Ministers release [Source 1]).
For most PAYG employees, the headline question is simple: will fuel cost me more or less at the bowser, and does that change the maths on my novated lease?
What this means for novated lease customers
Fuel costs are a real line item inside a novated lease budget. Under a standard novated lease, your employer bundles estimated running costs — including fuel — into your pre-tax salary deductions. If pump prices soften because of increased supply secured through this package, your actual fuel spend may come in under budget, which typically means a surplus returned to you at lease end.
Conversely, if the Government's goal is primarily supply security rather than immediate price cuts, day-to-day prices may not move dramatically in the short term. The honest answer right now is that the detail is still emerging — full Budget measures and any associated fuel excise changes haven't been legislated yet.
One thing that doesn't change: electric vehicles remain exempt from FBT under existing law, meaning the case for an EV on a novated lease is unaffected by this announcement. If reducing your exposure to fuel price volatility altogether appeals to you, an EV novated lease sidesteps the fuel cost question entirely.
Common questions
Will this Budget package lower fuel prices at the pump straight away?
The Government's stated aim includes immediate relief for motorists, but the package is primarily focused on securing supply and building resilience. Whether that translates to lower pump prices quickly depends on measures still being detailed in Budget legislation.
Does my novated lease fuel budget get adjusted if prices change?
Your novated lease runs on estimated annual fuel costs agreed at the start. If actual spend is lower than budgeted, most providers — including millarX — reconcile any surplus at the end of the lease period or annually. Check your lease agreement for how your provider handles this.
Should I wait until after the Budget detail is clear before getting a novated lease?
Waiting rarely pays off. The pre-tax salary packaging benefit and FBT exemption for eligible EVs are already legislated. Fuel price movements are one variable among many, and delaying means missing months of potential tax savings.
Does this announcement affect the FBT exemption on electric vehicles?
No. The EV FBT exemption is separate legislation and has not been altered by this fuel resilience package. It remains in place for eligible battery electric and plug-in hybrid vehicles under the current threshold rules.
What if fuel costs end up much higher than my lease budget?
If your actual fuel spend exceeds the estimated budget in your lease, you may need to top up the running-costs account or adjust your deduction at the next review point. Your millarX consultant can walk you through how that works before you sign.