Electric vehicles (EVs) receive large subsidies in Australia.
First, the Fringe Benefits Tax (FBT) exemption for battery EVs and plug-in hybrids (PHEVs) is estimated to cost the federal budget more than $550 million in lost tax revenue each year. However, the FBT exemption for PHEVs expired on April 1, 2025.
According to the FBT exemption rules, someone who leases a $60,000 car would save over $12,000 per year if they acquired an EV instead of a petrol car via a novated lease.
