EV Road User Charge Shelved — What the 2026 Budget Means for You
The government has paused the proposed EV road user charge. Here's what the 2026 budget decision means if you're considering a novated lease on an electric car.
If you've been sitting on the fence about leasing an EV because you were worried about a looming road user charge — you can breathe a little easier for now.
According to reporting by The Driven ([Source 1]), the road user charge for electric vehicles, which had been recommended by the Economic Reform Roundtable, has been put on hold as part of the 2026 federal budget. The same budget also allocates funding toward regional and kerbside charging infrastructure.
That's two meaningful signals for anyone weighing up an EV on a novated lease: the running-cost equation hasn't been made worse by a new per-kilometre charge, and the government is still putting money into making EVs more practical to live with.
What this means for novated lease customers
A road user charge would have added a direct operating cost to EV ownership — potentially chipping away at one of the main financial reasons people choose an electric car on a novated lease. With that charge paused, the current cost picture for EV novated leases stays intact for now.
The FBT exemption for eligible EVs under a novated lease remains in place separately — this budget announcement doesn't change that. What it does do is remove a near-term threat to the running-cost side of the equation.
The investment in regional and kerbside charging is also worth noting for practical reasons. Range anxiety and charging access are real objections for people considering an EV — more infrastructure spend, at least directionally, helps address those concerns over time. None of this is a green light to rush a decision. Policy can change. A road user charge is deferred, not dead. But right now, the settings for EV novated leasing are about as favourable as they've been.
Common questions
Does this mean there will never be a road user charge for EVs?
Not necessarily. The charge has been put on hold, not scrapped permanently. It was recommended by the Economic Reform Roundtable and could be revisited in a future budget. It's worth keeping an eye on policy developments if you're planning a lease over several years.
Does the FBT exemption for EVs still apply?
Yes, as of this budget announcement the FBT exemption for eligible battery electric and plug-in hybrid vehicles under a novated lease is still in place. This budget item relates specifically to the road user charge question, not the FBT rules.
How does the road user charge decision affect my novated lease running costs?
With the charge on hold, there's no new per-kilometre cost to factor in right now. Your novated lease budget estimate doesn't need to account for it — but if the charge is introduced later in your lease term, running costs could increase at that point.
What was the proposed road user charge?
The Economic Reform Roundtable recommended a road user charge as a way to replace fuel excise revenue lost as more drivers switch to EVs. The 2026 budget has deferred acting on that recommendation, according to The Driven's reporting.
Does more charging infrastructure affect whether I should get an EV on a novated lease?
It's a practical factor rather than a financial one. Better regional and kerbside charging makes EVs more usable day-to-day, which matters if you drive outside metro areas or can't charge at home. It doesn't change the tax or lease structure directly.