If you’re clocking full-time hours and dreaming about cruising around in a sleek electric vehicle, listen up because the government might just owe you thousands.
Between juicy rebates, generous tax breaks, and sneaky little loopholes, Aussies making the switch to an EV right now are pocketing way more than just fuel savings.
The problem is, most of these perks aren’t splashed across dealership windows, and if you don’t know how to play the game, you’ll miss out big time.
Today, I’m breaking down exactly how to cash in on Australia’s best-kept EV tax secrets before the rules change (and they will change).
Let’s get you rolling smarter and richer.
In this article
Is there an EV rebate in Australia?
Yes, Australia offers EV rebates, but they vary by state and territory. For example, WA and NT provide rebates up to $3,500 for eligible new electric vehicles, along with additional incentives like free charging, registration discounts, stamp duty exemptions and FBT savings. See our EV incentives state-by-state guide below.
Prefer to watch instead? Here’s a quick video that breaks down Australia’s EV rebates and tax savings for 2025! 🎥👇
📋 Quick Checklist: Am I Eligible for EV Tax Savings?
✅ Bought or leasing a new EV under $91,387?
(That’s the 2025 luxury car tax threshold for low-emission vehicles.)
✅ Using the EV mainly for personal or salary-packaged use?
(Not just a business vehicle tucked away in the garage.)
✅ Earning a full-time income and paying tax in Australia?
(Sorry, retirees and under-the-table cash jobs – this one’s not for you.)
✅ Living in a state offering rebates or stamp duty waivers?
(NSW, VIC, QLD, SA – check your state’s EV incentives below.)
For example, in WA, drivers can access up to $3,500 in EV rebates plus free charging at selected sites. See the official WA Zero Emission Vehicle Rebate Scheme (ZEV) here.
✅ Planning to install a home EV charger?
(Some costs could be deductible or claimable through novated lease bundles.)
✅ Organised enough to keep basic records?
(Think logbooks, lease agreements, EV charger receipts.)
Thinking about a hybrid or plug-in hybrid instead? They’re a great option for many drivers, but unfortunately, they don’t qualify for the EV tax rebate. Here’s why hybrids still have some big advantages.
The Salary Packaging Electric Vehicles Power Move (aka the Secret Sauce)
If you’re employed full-time, there’s an even bigger hack you need to know:
Salary Packaging + Novated Leasing = Massive tax savings.
Under recent ATO guidelines, eligible EVs under $91,387 are completely exempt from Fringe Benefits Tax, saving you even more. Learn more about the FBT exemption here.
Here’s the deal:
When you novate lease an eligible EV through your employer,
- You skip paying GST on the car purchase.
- You pay for the car out of your pre-tax income.
- Thanks to recent rule changes, you also completely dodge Fringe Benefits Tax (FBT) if your EV is under $91,387.
That’s wildly generous.
🎯 Quick Example:
Last month, a mate of mine leased a new BYD Atto 3:
- List price: $48,000
- No GST = $4,364 saved instantly
- Salary packaging shaved another ~$6,000 off his taxable income
- FBT = $0 (because it’s a clean electric vehicle under the cap)
👉 Total savings over 4 years? About $12,000.
Just for filling out a few forms and driving a brand-new EV to work every day.
Important Considerations:
We come to you — fast, mobile car inspections in Brisbane. Book today.
- Individual Tax Rate: The actual income tax savings from salary packaging will depend on the individual’s specific marginal tax rate. Higher tax rates will result in greater savings.
- Lease Costs: This calculation focuses on the savings. Remember to factor in the actual lease payments over the four years to determine the net cost of the vehicle. Salary packaging usually covers these lease payments from pre-tax income.
- Salary Packaging Fees: There might be administrative fees associated with the salary packaging arrangement, which would slightly reduce the overall savings.
- Residual Value/End of Lease: EV car depreciation directly affects the residual value of the car at the end of the lease and any associated costs for disposal or further purchase are not included in these savings.
EV Chargers and Hidden Deductions
Now, if you’re planning to install a home charger (and you absolutely should).
There’s another little-known tax angle to jump on.
If you salary package your EV charger installation through a novated lease deal, it might also be FBT-exempt.
If you’re buying outright, you could potentially claim a partial deduction if you use the car for work purposes.
Even better? Some states, like SA and NT, still offer grants toward home charger installations.
Common Pitfalls That Could Cost You Big Time
Before you start dreaming about your tax refund, make sure you don’t trip up on these rookie mistakes:
🚫 Buying an EV That’s Too Expensive
- Go over the $91,387 FBT exemption limit, and then you’re paying tax on the whole thing.
- Always check the driveaway price, not just the RRP.
🚫 Missing the Rebate Deadlines
- State rebates aren’t endless.
- VIC already slashed theirs once; QLD’s generous $6K rebates could dry up fast too.
- Some states limit rebates to the first 20,000 eligible vehicles, not forever.
🚫 Forgetting to Keep Records
- Logbooks. Lease agreements. Charger install receipts.
- No paperwork = no tax claim.
- Treat it like your car’s second glovebox – but for tax receipts.
Fast-Track Your Savings: Action Plan
Alright, if you’re serious about not leaving money on the table, here’s your fast lane:
✅ Step 1: Check Your State’s Rebates
Use our State-by-State EV Rebate Quick Guide and make sure your car qualifies.
| State/Territory | EV Purchase Rebate | Stamp Duty Discount | Bonus Perks | Max Vehicle Price Limit |
|---|---|---|---|---|
| New South Wales (NSW) | No rebate currently (closed December 31, 2023) | No stamp duty discount currently (ended 31 December 2023) | Priority in EV lanes in some areas | Under $68,750 (for previous rebate eligibility) |
| Victoria (VIC) | No subsidy currently (closed June 30, 2023) | Stamp duty savings (amount varies) | Discounted rego | Under $68,740 (for previous subsidy eligibility) |
| Queensland (QLD) | No rebate currently (ended September 2, 2024) | Reduced rego fees | Cheapest rego rates for EVs nationwide | Under $68,000 (for previous rebate eligibility) |
| South Australia (SA) | No rebate currently (ended December 31, 2023) | 3-year rego waived (for eligible vehicles registered before Dec 31, 2023) | Home charger grants available | Under $68,750 (for previous rebate eligibility) |
| Western Australia (WA) | $3,500 rebate | – | Free charging at select sites for 2 years | Under $70,000 |
| Tasmania (TAS) | No rebate currently | Stamp duty waived | Cheapest rego rates for EVs nationwide | No cap |
| Australian Capital Territory (ACT) | No cash rebate | Free rego for 2 years | Interest-free loans up to $15K | No cap |
| Northern Territory (NT) | $1,500 rebate | Stamp duty waived | EV home charger grants | Under $50,000 |
🚨 Quick Notes:
- Funding caps apply: Once the state hits their target number of EVs, rebates could disappear overnight.
- Vehicle limits matter: Some states will reject you if your EV is just a little too luxe. (Sorry, $130K Teslas.)
- Rules change fast: Always check the latest eligibility before signing a contract!
✅ Step 2: Talk to Your Employer About Novated Leasing
Most medium-large companies offer it already – just ask HR for the salary packaging provider info.
✅ Step 3: Pick a Car That Fits the Rules
Stay under that luxury threshold. Bonus points if it’s eligible for additional green incentives!
✅ Step 4: Bundle Your Home Charger (if possible)
Roll it into your novated lease or claim smart deductions.
✅ Step 5: Keep Every Single Receipt
You’ll thank yourself at tax time.
Final Pro Tip:
Even if you think leasing sounds complicated, it’s usually handled by third-party providers who do 90% of the paperwork for you.
It’s genuinely easier than doing your own tax return.
Final Lap: Don’t Let Free Money Drive Right Past You
There’s never been a better or more financially savvy time to jump behind the wheel of an EV. Whether it’s thousands shaved off your tax bill, instant discounts at the dealer, or smart salary packaging moves, the savings are there for the taking… if you know where to look.
But here’s the kicker: these deals aren’t sticking around forever. Budgets run out. Policies shift. So if you’re even half-considering making the switch, now’s the time to crunch the numbers, have a quick word with your accountant, and grab your share before the door slams shut.
Because let’s be honest, it’s way more fun saving money than giving it back to the taxman, right?
📚 Sources & References
Information in this article was sourced from:
- Australian Taxation Office — Electric Cars Exemption
- WA Government EV policies, rebates and Grant Programs
Always check the latest updates or speak to a qualified tax advisor to maximise your EV savings.
(Disclaimer: readers are advised to consult with their tax advisor for specific eligibility and up-to-date information, as tax laws can change.)
We come to you — fast, mobile car inspections in Brisbane. Book today.
Also Please Note: The information contained on this page is for general information purposes only. All reasonable steps have been taken to ensure that this information is accurate, complete and up-to-date. Also if you believe any information we have displayed is inaccurate, please contact us immediately and we will take reasonable steps to correct it. Finally, this information is a guide only and cannot be used as a reference to the point of law.