BYD Atto 1 Premium: Australia's Most Affordable EV on a Novated Lease
The BYD Atto 1 Premium is turning heads as Australia's cheapest EV. Here's what PAYG employees should know before leasing one. Read the breakdown.
Australia's most affordable electric vehicle just got a proper road test — and the verdict is hard to ignore. The Driven's review of the BYD Atto 1 Premium (Source 1) found that in its higher-spec Premium variant, the Atto 1 beats comparable petrol cars on range, technology, and running costs across a range of metrics.
For PAYG employees thinking about a novated lease, that combination — low sticker price and EV status — is worth paying attention to. Not because it's hype, but because of how the numbers tend to stack up under current tax rules.
What this means for novated lease customers
Under current ATO guidance, eligible battery electric vehicles valued below the luxury car tax threshold can attract a full FBT exemption when financed through a novated lease. The BYD Atto 1 Premium sits well under that threshold, which means it's one of the few vehicles where you could potentially pay for the car entirely from pre-tax salary — covering not just the lease payments but also running costs like registration, insurance, and charging.
The Driven's review highlights the Premium variant's extended range and upgraded tech stack as genuine differentiators over base-model petrol competitors in the same price bracket. For employees who drive a reasonable number of kilometres annually, a lower-cost EV entry point combined with FBT-exempt treatment can produce meaningful potential savings compared with financing a petrol equivalent on an after-tax basis — though your exact outcome depends on your income, employer setup, and how the vehicle is used.
It's also worth noting: the FBT exemption for EVs is legislated policy, not a grey area. But it has a sunset element — Treasury has flagged a review of the exemption as EV uptake grows. If you've been sitting on the fence, a low-cost entry point like the Atto 1 Premium is a reasonable prompt to actually run the numbers.
Common questions
Is the BYD Atto 1 Premium eligible for the FBT exemption on novated leases?
Based on current ATO rules, battery electric vehicles under the luxury car tax threshold are eligible for the FBT exemption. The Atto 1 Premium sits well under that threshold, but your employer must also participate in novated leasing — check with your HR or payroll team first.
How does leasing a low-cost EV differ from leasing a more expensive one?
The FBT exemption applies regardless of whether the EV costs $35,000 or $65,000 (as long as it's under the luxury car tax threshold). A lower purchase price generally means lower lease payments, which can make the pre-tax salary reduction easier to absorb on mid-range incomes.
What running costs are covered in a novated lease for an EV?
A fully maintained novated lease typically bundles registration, insurance, servicing, tyres, and charging costs into the one pre-tax package. Because EVs have fewer mechanical components, servicing budgets for models like the Atto 1 tend to be lower than for petrol equivalents.
Is the EV FBT exemption permanent?
No. It's subject to ongoing government review. Treasury has flagged that it will reassess the exemption as EV market share grows. It remains in place now, but it's not guaranteed indefinitely — something worth factoring into your timing.
Can I novated lease a BYD if my employer hasn't done it before?
Yes, in most cases. Novated leasing is a standard employment arrangement and most employers can set it up without significant effort. millarX handles the paperwork and coordinates directly with payroll — your employer doesn't need prior experience with it.