EVs Just Hit 20% of Australia's New Car Market
Electric vehicles cleared 20% market share in Australia, with Tesla Model Y topping all car sales. Here's what that shift means for novated lease buyers.
Something that seemed optimistic two years ago just happened: electric vehicles cleared 20% of Australia's new car market in a single month, with the Tesla Model Y becoming the country's best-selling vehicle outright — not just among EVs, but across every fuel type. That's a genuine milestone, and it matters if you're thinking about a novated lease.
According to The Driven [Source 1], Australia's EV market has delivered its biggest month on record. That's a demand signal, not a fluke. Supply has improved, prices have come down on several popular models, and the federal government's FBT exemption for eligible EVs under the luxury car tax threshold is still in place — creating a real financial incentive for PAYG employees to act.
What this means for novated lease customers
When a single model — the Tesla Model Y — outsells every petrol and diesel car in the country, it tells you a few things. Resale values on popular EVs are holding up because demand is strong. Dealer wait times on high-volume models are shortening as supply chains stabilise. And the more mainstream EVs become, the less 'early adopter risk' you're carrying when you sign a three-to-five year lease.
For novated leasing specifically, the FBT exemption on eligible EVs (currently legislated under the Treasury Laws Amendment (Electric Car Discount) Act 2022) means the tax treatment of an EV under a novated lease is materially different from an equivalent petrol vehicle. That gap — between the pre-tax treatment of an eligible EV and a comparable ICE car — represents potential savings that show up in your take-home pay every fortnight. We won't put a number on it here because it depends entirely on your salary, the vehicle, and your personal tax position. That's what the calculator is for.
What a 20% market share figure confirms is that the infrastructure anxiety and 'range anxiety' arguments are weakening. More Australians are making this work day-to-day — and many of them are doing it through novated leases precisely because the FBT exemption tips the numbers in favour of going electric.
Common questions
Does the FBT exemption still apply to Tesla Model Y in 2026?
The FBT exemption applies to eligible battery electric vehicles below the luxury car tax threshold, subject to the vehicle being first held and used on or after 1 July 2022. Whether a specific variant qualifies depends on its drive-away price and the threshold at the time of delivery — check with us before you commit.
Is a Tesla Model Y actually available through novated leasing?
Yes. Most novated lease providers, including millarX, can arrange a Tesla Model Y through a novated lease. Lead times and pricing vary, so it's worth getting a quote specific to your situation rather than relying on general estimates.
Does market share growth affect residual values in my lease?
Potentially yes, in a positive direction. Strong resale demand for popular EV models can support residual values at end-of-term, which affects your balloon payment calculation. This isn't guaranteed, but sustained demand — like what the current sales data suggests — is generally a healthier signal than a soft market.
I'm not interested in a Tesla. Does any of this apply to other EVs?
Absolutely. The FBT exemption applies to any eligible BEV or PHEV under the threshold, not just Tesla. There are now dozens of models to consider across different price points, body styles, and brands — the Tesla numbers just happen to be the headline this month.
Should I rush to sign a lease because of this news?
No. Never make a five-year financial commitment because of a market share headline. Use this as a prompt to run your own numbers — your salary, the specific car, and the lease term are what determine whether it makes sense for you.