Electric Company Car Leasing
Cut your fleet costs with electric company cars
If your organisation provides cars to staff that they can also use privately, you normally pay fringe benefits tax (FBT) on them. Eligible electric cars are currently exempt from FBT, which can make an electric company car much cheaper to provide than a petrol or diesel one.
PAR Leasing puts electric company cars on a fully maintained lease, so one fixed monthly payment covers the car, servicing, tyres, registration and, if you choose, charging.
Why electric company cars make sense now
- No FBT on eligible EVs: a full exemption for eligible cars until 31 March 2027, and a full exemption or 25% discount after that depending on price.
- Lower running costs: electric cars need less servicing and charging usually costs less than fuel.
- Lower emissions: a simple way to work towards your organisation’s sustainability goals.
- More choice than ever: there are now many electric cars, SUVs and utes at sensible prices.
Electric car FBT rules: the timeline
- Until 31 March 2027: eligible electric cars priced below the luxury car tax threshold for fuel-efficient vehicles ($91,661 for 2026-27) are fully exempt from fringe benefits tax.
- From 1 April 2027: the Government has announced the full exemption will continue only for eligible EVs under $75,000. Eligible EVs above $75,000 (but below the threshold) will get a 25% FBT discount instead.
- From 1 April 2029: all eligible EVs move to the 25% FBT discount.
- Existing leases: arrangements already in place are expected to keep their current treatment.
These changes have been announced and released as draft legislation. We will update this page as the rules are finalised.
Which electric cars qualify?
To be exempt, the car must be a battery electric or hydrogen fuel cell car, first held and used on or after 1 July 2022, and priced below the luxury car tax threshold for fuel-efficient vehicles. Plug-in hybrids no longer qualify for new arrangements made from 1 April 2025. Through the Alan Mance Motors group we can source eligible models from brands including XPENG, Kia, Hyundai, Geely and GWM. See our list of electric and hybrid cars to lease.
Lock in the current exemption
Because existing leases are expected to keep their current treatment, leasing an eligible EV before 1 April 2027 can lock in the full exemption for the life of the lease, even for cars priced above $75,000. Talk to us early, as delivery times vary by model.
Organisations that trust PAR Leasing with fully maintained leases include CoHealth, Greyhound Racing Victoria and Harness Racing Victoria.
Frequently asked questions
Are electric company cars exempt from FBT?
Yes, eligible battery electric and hydrogen fuel cell cars priced below the luxury car tax threshold for fuel-efficient vehicles are currently exempt from FBT when provided to employees. From 1 April 2027 the full exemption is planned to apply only to eligible cars under $75,000, with a 25% discount above that.
Do plug-in hybrids qualify?
Not for new arrangements. Plug-in hybrids stopped qualifying for the exemption for arrangements made from 1 April 2025, although some earlier arrangements may continue.
Can charging costs be included in the lease?
Yes. We can include charging through a charge card or reimbursement, so charging is covered in your monthly payment.
Does the exempt car still show on my employee’s income statement?
Yes. Exempt EV benefits are still counted when working out an employee’s reportable fringe benefits amount, which can affect things like government payments and some income tests.
Can you lease electric utes and vans?
Yes. Electric and hybrid utes and vans are becoming more common. Note that some utes and vans are treated differently for FBT, so ask us about the specific vehicle.
This is general information only and does not take your circumstances into account. Tax rules can change, so please speak to your accountant or tax adviser before making a decision.
Talk to PAR Leasing
Call us on (03) 8387 1200, email davidb@parleasing.com.au or send us a message for a free, no-obligation quote. PAR Leasing is the fleet division of Alan Mance Motors, based at 237-241 Geelong Road, Footscray, and works with organisations across Victoria and the east coast of Australia.
