Novated lease
Can you claim home EV charging on a novated lease?
Short answer: yes. If your EV is on a novated lease, your employer (through your lease provider) can reimburse the electricity you use charging at home, from your pre-tax lease budget. The simplest way is the ATO's EV home charging rate of 5.47 cents per km, which applies from the FBT year starting 1 April 2026 (it was 4.20c/km before that). You multiply the kilometres you drove by the rate and only need odometer readings. Alternatively, you can claim your actual electricity cost if you can measure it, for example with a separately metered charger. Source: ATO PCG 2024/2.
General information, not tax advice. Check how your lease provider handles charging claims.
General information, not tax advice. Rules change and your circumstances differ. Check the ATO sources linked here and speak to a registered tax agent or your employer's payroll team before you decide.
How the ATO rate works
The ATO's Practical Compliance Guideline PCG 2024/2 lets employers and individuals work out home charging costs with a cents-per-km rate instead of measuring electricity. The rate is set per FBT year (1 April to 31 March):
| FBT year | EV home charging rate |
|---|---|
| Years starting on or after 1 April 2022 | 4.20c per km |
| Years starting on or after 1 April 2026 | 5.47c per km |
Source: ATO PCG 2024/2, Table 2.
Key rules from the guideline:
- One method per car for the whole FBT year. You can't switch between the rate and actual costs mid-year, but you can change from year to year.
- Home charging only. If you also charge in public or at work, you apply the rate only to the share of kilometres powered from home.
- Keep odometer records for the start and end of the period.
- The ATO's own example (Sally, paragraphs 47–50) is a novated-lease EV charged at home: the reimbursement is an exempt car expense payment benefit.
Since an update on 20 November 2025, the guideline also includes a method for plug-in hybrids charged at home, as the ATO's FBT updates page explains. PHEVs generally lost the FBT exemption from 1 April 2025, though; see EV vs PHEV on a novated lease.
Worked examples at 5.47c/km
These use only the ATO rate. Your actual tax saving depends on your marginal rate.
| Kilometres a year | Share charged at home | Claim (km × share × 5.47c) |
|---|---|---|
| 10,000 | 100% | A$547 |
| 15,000 | 100% | A$820.50 |
| 20,000 | 100% | A$1,094 |
| 20,000 | 70% | A$765.80 |
The 20,000 km figure matches the example in Smart's charging claims guide.
Rate or actual cost: which is better?
The rate pays out the same whatever your tariff. That makes it generous if you charge cheaply. For example, OVO Energy's EV Plan in Victoria charges 4.5c/kWh from midnight to 6am, and OVO assumes an average of 20 kWh per 100 km (OVO EV Plan). On those figures, 100 km costs about 90c of electricity, while the ATO rate gives A$5.47 per 100 km. If you charge free from your own solar, the rate still applies.
The actual-cost method suits you only if your electricity is dear and you can measure it accurately, for example with a dedicated meter or a charger that logs energy used. Compare plans in our guide to EV electricity plans in Victoria.
How to claim on your lease
- Ask your lease provider whether it reimburses home charging and how often (monthly, quarterly or annually).
- Record your odometer at the start (for example, 1 April) and at each claim.
- Estimate your home-charging share if you also use public chargers.
- Submit the claim through your provider; the amount comes from your pre-tax lease budget.
Model the overall lease in our novated lease calculator, and see what else can be packaged in what can go in a novated lease. Charger costs are covered in our home charger installation cost guide.
FAQ
What is the ATO EV home charging rate for 2026–27?
5.47 cents per kilometre for FBT years starting on or after 1 April 2026, up from 4.20 cents.
Can I use the rate if I have solar?
Yes. The rate is based on kilometres driven, not on what you paid for electricity.
Do I need a separate meter?
No. You only need odometer records to use the rate. A separate meter is needed only if you want to claim actual costs.
Can I switch methods during the year?
No. The choice applies to the car for the whole FBT year, but you can change from one year to the next.
Does this apply to plug-in hybrids?
The guideline has a PHEV method since November 2025, but most PHEVs are no longer FBT-exempt on a novated lease from 1 April 2025.
Sources
- ATO, PCG 2024/2 EV home charging rate (amended 25 March 2026): https://www.ato.gov.au/law/view/pdf?DocId=COG%2FPCG20242%2FNAT%2FATO%2F00001&PiT=20260325000001&filename=law%2Fview%2Fpdf%2Fcog%2Fpcg2024-002c2.pdf
- ATO, What's new in FBT (2026 return instructions): https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2026-instructions/whats-new-in-fbt
- Smart, EV charging claims on a novated lease: https://www.smart.com.au/news-and-reviews/ev-charging-claims-guide/
- OVO Energy, The EV Plan: https://pages.ovoenergy.com.au/the-ev-plan
Last checked: 21 October 2026. General information only, not tax, financial, legal or credit advice. We don’t recommend any provider; where businesses are named, it’s for information. See our affiliate disclosure.