Electric vehicles (EVs) are massively subsidised in Australia.
First, more than $550 million of tax revenue is estimated to be lost annually due to the Fringe Benefits Tax (FBT) exemption for battery EVs and plug-in hybrids (PHEVs); however, the FBT exemptions for PHEVs ended on 1 April 2025.
Under the FBT exemption policy, somebody who leases a $60,000 car would save nearly $12,000 a year if they purchased an EV instead of a petrol car through a novated lease.
