Free checklist

Novated EV Lease Checklist

Questions to ask, what to check in a quote, red flags, and a table to compare up to three quotes. It’s Australian, neutral and sourced.

Last checked: 19 October 2026 · By The EV Insider · Two pages, free

Get the free checklist ↓

What’s inside

Does the car qualify?: the EV FBT exemption conditions, the A$91,661 LCT threshold and the PHEV end date, with ATO links
The April 2027 changes: the proposed A$75,000 base-value test and the 25% discount, and what counts as a new commitment
8 questions to ask a provider: rate, fees, residual, insurance, early termination and the running-cost budget
What to check in the quote: bundled running costs, the residual under ATO rules, reportable fringe benefits
Red flags: the warning signs that a quote isn't what it looks like
A comparison table: fill in up to three quotes side by side, plus a printable two-page PDF

General information, not financial or tax advice. Every rule links to the ATO, Treasury or ASIC Moneysmart.

Preview of page 1 of the Novated EV Lease Checklist, partly blurred — Page 1 preview

Enter your email to get the free checklist + The EV Insider newsletter

You’ll see the full checklist and the PDF download straight away.

Thanks, you’re in. Your checklist is ready below.

Download the PDF ↓Jump to the comparison table

General information, not financial or tax advice. This checklist doesn’t consider your circumstances, and we don’t recommend any provider. Rules can change, and the 2027 FBT changes aren’t law yet. Confirm everything in writing, and consider advice from a registered tax agent or licensed adviser.

1. Does the car qualify for the EV FBT exemption?

It's a zero or low emissions car: battery electric or hydrogen fuel cell. ATO
Plug-in hybrids: not eligible from 1 April 2025, unless the PHEV was used or available for use before 1 April 2025 and a financially binding commitment continues. ATO
First held and used on or after 1 July 2022. ATO
Luxury car tax has never been payable on it. The fuel-efficient LCT threshold is A$91,661 for 2026–27 (A$91,387 for 2025–26). For a used EV, check earlier sales too. ATO LCT thresholds
You're a current employee (or their associate) and your employer offers novated leasing. ATO

Proposed changes from 1 April 2027: not yet law (as at 19 October 2026). Under the 2026–27 Budget measure and Treasury’s exposure draft:

Commitments made before 1 April 2027 keep today’s exemption while that commitment lasts.
Commitments from 1 April 2027 to 31 March 2029: a car with a base value of A$75,000 or less gets a 100% FBT discount. Above A$75,000, up to the fuel-efficient LCT limit, it gets a 25% discount.
Commitments from 1 April 2029: a 25% discount for all eligible EVs.

Base value isn’t the same as the drive-away price. Under the draft, refinancing, changing the term or residual, or changing employer can count as a new commitment. Sources: ATO, Treasury consultation, Treasury media release, Deloitte summary of the draft (secondary).

2. Questions to ask a provider

What is the interest rate, shown as an annual percentage? Is it fixed for the whole term?
What fees apply (establishment, monthly admin, early termination), and what commissions do you receive from the financier, dealer or insurer?
Can I get an itemised car price: vehicle, accessories, dealer delivery, on-road costs and GST?
What is the car’s base value for FBT, and will my commitment be made before 1 April 2027?
Which running costs are budgeted (charging, tyres, servicing, registration, insurance), and what happens to unspent or overspent budget at the end of each year?
What happens if I change jobs, lose my job, take unpaid leave, or the car is written off?
Can I see my pre-tax and post-tax deductions per pay and the change in my take-home pay, in writing?
Am I free to get my own insurance and do my own charging, or must I use yours?

3. What to check in the quote

Residual (balloon): you owe it at the end of the lease. You can pay it, refinance it, or sell or trade the car. Is GST added? The ATO’s minimum residual values (for the 8-year effective life column usually used for cars) are 65.63% of cost after 1 year, 56.25% after 2, 46.88% after 3, 37.50% after 4 and 28.13% after 5. ATO TD 93/142
Running costs: check each budget against your real kilometres and charging. The ATO’s home EV charging shortcut rate is 5.47c per km for 2026–27. A home charger itself isn’t an exempt car expense. ATO PCG 2024/2, ATO
Fees: add up establishment, admin and any end-of-lease fees over the full term, not per pay.
Insurance: is comprehensive cover included, and at what price? Add-on insurance (GAP, tyre and rim, extended warranty) is optional. Salespeople must wait four days before selling it, and Moneysmart says dealers often get a 20% commission. Moneysmart
Early termination: ask for a written example payout figure if you end the lease in year 2 or 3. The industry code for novated leasing is the AFIA Code, schedule 2.
Salary packaging effects: an exempt EV is still a reportable fringe benefit. Employers report it if the taxable value is over A$2,000. It isn’t taxed as income, but it’s counted in income tests such as the Medicare levy surcharge, study-loan repayments, child support and family payments. ATO, ATO (employers), ATO (employees), Moneysmart

4. Red flags

No interest rate shown, or only a weekly cost.
Pressure to sign today, or add-on insurance offered as if it were compulsory.
“Savings” figures with no tax rate, kilometres or charging assumptions shown.
A residual below the ATO minimums above, or no residual shown.
Fees or commissions that aren’t itemised.
Promises about FBT after 1 April 2027 as if the changes were already law.
A car priced near the LCT threshold or A$75,000 with no base-value figure.

5. Compare your quotes

Compare up to three quotes
Item	Quote A	Quote B	Quote C
Provider
Car and drive-away price (A$)
Base value for FBT (A$)
Lease term (years)
Interest rate (% a year)
Residual (A$ and % of cost)
Establishment and admin fees (total, A$)
Running-cost budget (A$ a year)
Insurance included? (cost)
Pre-tax deduction per pay (A$)
Post-tax deduction per pay (A$)
Change in take-home pay per pay (A$)
Example early-termination cost (A$)
Commitment before 1 April 2027? (Y/N)

Sources

ATO, Electric cars exemption: https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/types-of-fringe-benefits/fbt-on-cars-other-vehicles-parking-and-tolls/electric-cars-exemption
ATO, FBT on plug-in hybrid electric vehicles: https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/types-of-fringe-benefits/fbt-on-cars-other-vehicles-parking-and-tolls/fbt-on-plug-in-hybrid-electric-vehicles
ATO, Luxury car tax rate and thresholds: https://www.ato.gov.au/tax-rates-and-codes/luxury-car-tax-rate-and-thresholds
ATO, Electric car discount: proposed changes (not yet law): https://www.ato.gov.au/about-ato/new-legislation/in-detail/businesses/electric-car-discount-more-sustainable-fbt-treatment-of-electric-cars
Treasury consultation, Sustainable FBT treatment of electric cars: https://consult.treasury.gov.au/c2026-800622
Treasury ministers, media release 5 May 2026: https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/fairer-tax-treatment-encourage-affordable-evs
ATO, TD 93/142 minimum residual values: https://www.ato.gov.au/law/view/document?docid=TXD%2FTD93142%2FNAT%2FATO%2F00001
ATO, PCG 2024/2 EV home charging rate: https://www.ato.gov.au/law/view/document?docid=COG%2FPCG20242%2FNAT%2FATO%2F00001
ATO, Reportable fringe benefits (employers): https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/fbt-registration-lodgment-payment-and-reporting/reportable-fringe-benefits
ATO, Consequences of a reportable fringe benefits amount: https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/working-as-an-employee/reportable-fringe-benefits-for-employees/consequences-of-having-a-reportable-fringe-benefits-amount
ASIC Moneysmart, Salary packaging: https://moneysmart.gov.au/work-and-tax/salary-packaging
ASIC Moneysmart, Add-on car insurance: https://moneysmart.gov.au/car-insurance/add-on-car-insurance
AFIA Code of Practice, schedule 2: novated leasing (industry code): https://www.afia.asn.au/finance-code/schedule-2-novated-leasing
Deloitte tax@hand, summary of the exposure draft (secondary): https://www.taxathand.com/article/41746/Australia/2026/Draft-legislation-proposes-phased-discounts-to-replace-the-EV-FBT-exemption

Download the PDF ↓

See our affiliate disclosure and privacy policy. This page contains no affiliate links. Related: What can go in a novated lease?, EV FBT after March 2027.