EVs Just Hit 20% of Australian Car Sales — Here's Why It Matters
Electric vehicles crossed 20% market share in Australia, with Tesla Model Y topping all sales. See what this shift means for novated lease buyers. Read more.
Australia's EV market just hit a milestone that would have looked optimistic two years ago. According to reporting by The Driven, electric vehicles exceeded 20% market share in their biggest month yet, with the Tesla Model Y becoming the country's best-selling car outright — not just best-selling EV, best-selling car.
That's a signal worth paying attention to if you're weighing up a novated lease. When one in five new vehicles sold is electric, this is no longer a niche technology decision. It's becoming the mainstream one.
What this means for novated lease customers
The timing matters because the federal government's FBT exemption for eligible zero or low-emission vehicles remains one of the most significant tax concessions available to PAYG employees. A broader, more competitive EV market — with more models at more price points — means more employees actually qualify for it.
More volume in the EV market also tends to mean more competitive pricing from dealers, better residual values, and faster access to stock. All of these factors feed directly into the overall cost of a novated lease arrangement. None of that guarantees a good deal on its own, but a growing market generally works in the buyer's favour.
If you've been sitting on the fence about whether an EV via novated lease is worth exploring, the market is telling you something. The question now isn't whether EVs are a real option — it's whether the specific vehicle and structure you're being offered actually stacks up.
Common questions
Does the FBT exemption still apply to EVs in 2026?
The federal government's FBT exemption for eligible zero and low-emission vehicles is still in place. You should confirm your specific vehicle qualifies and get current advice, as eligibility criteria and any future policy changes are subject to government review.
Why is the Tesla Model Y topping sales relevant to novated leasing?
It signals that EVs are now mainstream volume vehicles, not enthusiast purchases. Higher demand and production volumes often translate to better pricing and availability — both of which matter when structuring a novated lease.
Is a novated lease actually a good deal on an EV, or is it just hype?
It depends on your income, the vehicle, and the lease terms you're offered. The FBT exemption removes a cost that would otherwise apply to employer-provided vehicles, which can create genuine pre-tax savings — but the quality of the deal still comes down to the residual value, rate, and fees your provider is quoting.
What if I want a Tesla Model Y specifically — is that straightforward?
Tesla vehicles are commonly arranged through novated leases in Australia. The main things to check are current pricing, delivery timelines, and whether your employer's novated lease provider handles Tesla orders directly or through a third party.
Do I need to act quickly given rising EV demand?
There's no artificial urgency here. The FBT exemption isn't disappearing overnight, and stock availability has improved significantly as the market has grown. Do the numbers properly before committing.