Which Australian Cities Are Actually EV-Friendly in 2026?
Canberra tops the list but EV uptake tells a different story. Here's what Australia's city-by-city EV rankings mean for your novated lease decision.
A new analysis published by The Driven (May 2026) ranked Australia's capital cities by how EV-friendly they really are — and the results are counterintuitive. Canberra came out on top, while the city with the cleanest and cheapest charging network is lagging badly on actual EV adoption.
If you're weighing up a novated lease on an electric vehicle, where you live genuinely matters. Charging infrastructure, electricity costs, and local incentives all affect the real-world experience of EV ownership — and they vary more than most people realise across Australian capitals.
What this means for novated lease customers
The city-by-city picture matters for novated leasing for a straightforward reason: the FBT exemption for eligible EVs under a novated lease applies regardless of where you live, but your day-to-day running costs absolutely don't. Charging infrastructure quality, home charging feasibility, and local electricity tariffs all feed into the total cost of EV ownership.
According to the reporting from The Driven [Source 1], charging costs and network coverage differ significantly between capitals. That gap has a real bearing on whether the potential savings from a novated EV lease translate into a genuinely better outcome for you — or whether range anxiety and charging friction eat into the benefit.
The short version: if you're in Canberra or another highly-ranked city, the practical case for going electric under a novated lease is stronger right now. If you're elsewhere, it's worth doing the homework on local charging before you commit.
Common questions
Does the FBT exemption for EVs apply no matter which city I'm in?
Yes. The FBT exemption for eligible battery electric vehicles under a novated lease is a federal measure — it applies equally across all states and territories. Your city doesn't change your tax treatment, but it does affect your running costs.
Which Australian cities currently have the best EV charging infrastructure?
According to The Driven's May 2026 analysis, Canberra ranks as the most EV-friendly capital overall, while another city with notably clean and cheap charging is underperforming on actual EV uptake. Read the full piece for the city-by-city breakdown.
Should I factor my city's charging network into my novated lease decision?
Absolutely. Charging access affects your running costs, convenience, and long-term satisfaction with an EV. A novated lease locks you in for two to five years, so it's worth understanding your local infrastructure before you sign.
Can I include home charging installation costs in my novated lease?
In many cases, yes — a home charger can be bundled into your novated lease package, which means it's also paid from pre-tax dollars. Ask your leasing consultant what's eligible under your specific arrangement.
Is EV uptake actually growing in Australia despite the city-by-city gaps?
Nationally, EV sales have grown steadily since the FBT exemption was introduced, but adoption is uneven. Infrastructure confidence is a key barrier in lower-ranked cities, which is part of why the city-level data matters.