Choosing the right electric vehicle for a salary packaging arrangement comes down to finding the perfect balance between driving range, daily practicality, and tax efficiency. If you want to maximise your financial benefits, focusing your search on the best EVs novated lease Australia 2026 has to offer under the Luxury Car Tax (LCT) threshold is the smartest place to start.
The Australian Government’s Fringe Benefits Tax (FBT) exemption is the driving force behind the massive surge in EV novated leasing. However, to qualify for this full exemption, the vehicle must fall beneath the LCT threshold for fuel-efficient vehicles—which sits at $91,387 for the 2025/2026 financial year. It is also important to note that from April 2027, the full FBT exemption will be restricted to EVs priced under $75,000.
Because existing leases are grandfathered under the rules in place when they are signed, there is a strong incentive to lock in a lease before these thresholds change. Fortunately, the Australian market is now packed with exceptional battery electric vehicles (BEVs) well below this price point. Here is our guide to the standout models currently dominating the novated leasing landscape.
BYD Atto 3: The Practical Family All-Rounder
The BYD Atto 3 has rapidly become one of the most common sights on Australian roads, and it is easy to see why. Starting from a highly accessible $44,499 drive-away for the standard range model, it leaves plenty of breathing room under the FBT exemption threshold.
For families looking for their first electric vehicle, the Atto 3 delivers a spacious interior, a comfortable ride, and a comprehensive suite of active safety features. Its distinctive rotating central touchscreen and quirky interior styling give it a unique character, while the Blade Battery technology provides reliable, safe performance.
Under a novated lease, the Atto 3 is exceptionally affordable. Because the purchase price is low, the pre-tax salary deductions required to cover the lease and running costs are minimal, making it an ideal entry point for drivers wanting to experience EV ownership without stretching their budget.
Tesla Model 3: The Benchmark Electric Sedan
No list of the best EVs novated lease Australia 2026 has to offer would be complete without mentioning Tesla. The Model Y has been Australia’s best-selling electric vehicle for several consecutive years, and it is easy to understand why — its combination of practical SUV proportions, impressive range, and seamless over-the-air software updates makes it the default choice for families and professionals alike. The Model Y Rear-Wheel Drive starts from approximately $62,400 drive-away, sitting comfortably under the FBT exemption threshold. For those who prefer a sleeker sedan, the Model 3 Rear-Wheel Drive remains the benchmark for mid-size electric sedans, priced from approximately $61,497 drive-away depending on your state.
The Model 3 offers an unmatched combination of aerodynamic efficiency, cutting-edge software, and access to the expansive Tesla Supercharger network. Its minimalist interior is dominated by a highly responsive central display that controls almost every vehicle function.
Crucially, the RWD variant sits comfortably under both the current $91,387 LCT threshold and the upcoming $75,000 cap arriving in 2027. This ensures it remains fully eligible for the FBT exemption, allowing you to package the car, insurance, registration, and charging costs entirely from your pre-tax income.
MG4: The Engaging Electric Hatchback
If you are looking for a compact, rear-wheel-drive hatchback that is genuinely fun to drive, the MG4 is a standout contender. With the Excite 51 variant starting from just $31,990 drive-away, it is currently one of the most affordable electric vehicles on the Australian market.
Despite its sharp pricing, the MG4 does not compromise on driving dynamics. Its 50:50 weight distribution and low centre of gravity make it agile and responsive around city streets, while the Long Range and Extended Range variants offer the battery capacity needed for longer weekend road trips.
For novated lease buyers, the MG4 represents incredible value. When combined with the FBT exemption, the pre-tax deductions for an MG4 can often be lower than what you might pay to run a second-hand petrol hatchback out of your own pocket.
BYD Seal: The Premium Performance Contender
For drivers who want the sleek styling and performance of a premium sports sedan without the luxury price tag, the BYD Seal is an exceptional choice. Starting from around $49,888 before on-road costs for the Dynamic variant, the Seal undercuts many of its direct competitors while offering a highly refined driving experience.
The Seal features BYD’s advanced cell-to-body technology, which integrates the battery directly into the vehicle’s structure for improved rigidity and handling. Inside, the cabin is trimmed in high-quality materials and features a panoramic glass roof, giving it a genuinely premium feel.
Even the top-tier Performance AWD variant, which boasts a staggering 390kW of power and a 0-100km/h time of 3.8 seconds, sits comfortably below the LCT threshold. This makes it a highly attractive option for those wanting high performance wrapped in a tax-efficient novated lease package.
Comparing The Financial Impact
To understand why choosing an EV under the LCT threshold is so important, it helps to look at the financial mechanics of a novated lease. By selecting a fully electric vehicle that qualifies for the FBT exemption, you avoid the post-tax contributions required when leasing a traditional petrol or diesel car.
| Cost Factor | EV Novated Lease | Petrol Novated Lease |
|---|---|---|
| Vehicle price | $55,000 | $55,000 |
| Fringe Benefits Tax | Exempt (nil) | Applies — employee makes post-tax contributions to offset |
| Pre-tax salary deduction | Full lease + running costs | Partial — reduced by required post-tax contributions |
| Post-tax contributions required | None | ~$5,000–$7,000 per year |
| Annual fuel / charging cost | ~$600–$900 (home charging) | ~$2,600–$3,200 (petrol at ~$2/L) |
| Annual servicing cost | ~$300–$500 | ~$700–$1,200 |
| Estimated income tax saving (3 yrs) | ~$12,000–$15,000 | ~$3,000–$5,000 |
| Estimated total saving vs buying outright | ~$18,000–$22,000 | ~$4,000–$7,000 |
| GST saving on vehicle + running costs | Yes — 10% across the board | Yes — 10% across the board |
| Total Expected Saving Over 3 Years (EV vs Petrol) | ~$14,000–$18,000 more saved | Baseline |
Indicative figures based on a $100,000 salary, 3-year lease, 15,000 km/year. Individual outcomes vary — get a personalised quote for your exact numbers.
If you are still deciding whether this approach is right for you, our Complete Guide To EV Novated Leasing In Australia covers the foundational mechanics of salary packaging. You can also read more about Why A Novated Lease Makes Your Next EV More Affordable for a deeper dive into the tax benefits.
Maximise Your Savings With evee
The Australian electric vehicle market has matured rapidly, offering exceptional choices from brands like BYD, MG, and Tesla that sit well below the LCT threshold. By selecting one of these eligible models, you can take full advantage of the government’s FBT exemption and significantly reduce your taxable income.
Through the evee x Vehicle Solutions partnership, securing your next electric vehicle is easier and more rewarding than ever. Not only do you get expert guidance through the salary packaging process, but eligible customers can also receive up to $500 cashback when setting up a new lease.
Ready to see how much you could save on the best EVs novated lease Australia 2026 has to offer? Explore eligible EVs and get a quick quote today.
