Which Australian Cities Are Actually EV-Friendly in 2026?
Canberra tops the list but uptake lags in the city with the cheapest charging. Here's what Australia's EV city rankings mean for your novated lease.
A new ranking from The Driven has put Australia's capital cities head-to-head on EV friendliness — and the results are worth paying attention to if you're considering a novated lease on an electric vehicle.
According to The Driven's analysis, Canberra ranks as the most EV-friendly capital city in Australia. The twist? The city with the cleanest and cheapest charging rates is actually seeing surprisingly low EV uptake — which tells you something important: infrastructure and affordability alone don't drive adoption.
What this means for novated lease customers
Where you live and work matters when you're running the numbers on an EV novated lease. Charging costs, network availability, and local incentives all affect the real-world economics of going electric — even before you factor in the FBT exemption that currently applies to eligible battery electric vehicles under Australian tax law.
If you're based in a city with cheaper public charging, that's a genuine operational saving on top of any tax benefits. If you're in a city where the infrastructure is thinner, home charging becomes more important — and that's worth discussing before you sign a lease. The city you live in isn't a dealbreaker, but it is a variable. A good novated lease broker should be factoring this into the conversation, not glossing over it.
The broader point from this data is that EV adoption in Australia is still uneven — which means the window where the federal FBT exemption for EVs is a genuine competitive advantage is still open. That window won't stay open forever as policy settings continue to evolve.
Common questions
Does my city affect whether I can get an EV on a novated lease?
No — the FBT exemption for eligible EVs applies Australia-wide regardless of where you live. Your city does affect practical running costs like public charging rates and network availability, which feed into your overall cost of ownership.
Why is Canberra rated the most EV-friendly city?
According to The Driven's reporting, Canberra scores highly across factors including charging infrastructure relative to population and EV registrations. The full methodology is in their article.
Which city has the cheapest EV charging rates?
The Driven's analysis identifies one city as having the cheapest and cleanest charging, but notes that EV uptake there remains low. Check the source article for the specific city — the disconnect between affordability and adoption is the interesting story.
Does charging cost affect what's included in my novated lease?
Yes. Charging costs — both home and public — can be bundled into a novated lease budget, which means they're paid from pre-tax salary. The rate you pay per kWh in your city will influence how much you should budget for this.
Is the EV FBT exemption still available in 2026?
The FBT exemption for eligible battery electric vehicles has been a key policy since 2022 — speak to a licensed adviser to confirm current eligibility rules for your specific vehicle and situation, as policy can change.