BYD Atto 1 Premium: Australia's Most Affordable EV on a Novated Lease
The BYD Atto 1 Premium is turning heads as Australia's lowest-cost EV. Here's what novated lease employees should know before signing anything.
Australia's EV market just got more interesting. The Driven's June 2026 review of the BYD Atto 1 Premium found it outperforms comparable petrol cars on a number of fronts — range, tech, and running costs among them (Source 1). For PAYG employees considering a novated lease, that combination of low purchase price and strong performance is worth paying attention to.
The Atto 1 Premium sits at the more affordable end of the Australian EV market. That matters, because in a novated lease structure the drive-away price is the starting point for your pre-tax deductions — a lower sticker price generally means more of the tax benefit flows to you rather than getting swallowed by the car's cost.
What this means for novated lease customers
Under current Australian tax rules, eligible battery electric vehicles are exempt from Fringe Benefits Tax (FBT) when held under a novated lease — a policy that has made EVs significantly more attractive to salary-packaging employees. The BYD Atto 1 Premium's positioning as a lower-cost EV means the FBT exemption can stretch further relative to the vehicle's price point compared to pricier models.
There are a few things to look at beyond the headline price. Running costs on an EV — electricity versus petrol, servicing, tyres — feed into the novated lease budget your employer deducts, and lower running costs can mean a smaller fortnightly impact on your take-home pay. Residual value is also worth watching: BYD is a newer brand in Australia, and residual values aren't as established as Toyota or Mazda. A good novated lease broker will stress-test that number before you commit.
The FBT exemption for EVs applies to cars under the luxury car tax threshold — confirm the Atto 1 Premium's drive-away pricing remains within that limit at the time you lease, as pricing can shift.
Common questions
Is the BYD Atto 1 eligible for the EV FBT exemption?
Battery electric vehicles priced below the luxury car tax threshold are eligible for the FBT exemption under current Australian tax law. The Atto 1 sits well below that threshold, but you should confirm the exact drive-away price at the time of your lease and get written confirmation from your broker.
How does a lower purchase price affect my novated lease repayments?
In a novated lease, your pre-tax deductions are based on the vehicle's cost plus running expenses. A lower-priced vehicle generally means lower deductions and less impact on your take-home pay, all else being equal.
Should I be worried about BYD's residual value in Australia?
It's a fair concern. BYD has grown quickly in Australia, but resale data is still building. A conservative residual value set by your finance provider protects you at the end of the lease — make sure your broker explains how that figure is set.
Can I novate a BYD Atto 1 if my employer hasn't done it before?
Yes, as long as your employer is willing to enter a novation agreement with a lease provider. Most employers can be set up straightforwardly — a reputable broker handles the paperwork.
What happens to the FBT exemption if the policy changes?
FBT exemption policy is set by the federal government and could change in future budgets. Leases already in place are generally protected, but it's worth understanding the risk if you're signing a 3-5 year term.