Government EV-Novated Lease Incentive Under Review in 2026

Back in 2022, Anthony Albanese came good on a pre-election promise to help grow electric vehicle (EV) uptake across Australia.

After the ALP won that year’s election, the Electric Car (EV) Discount Bill became law in December 2022. The Discount would exempt drivers of eligible EVs from paying Fringe Benefits Tax (FBT) while under a novated lease.

This meant that, provided eligibility criteria was met, Australians could drive a brand-new EV and pay for it entirely with their pre-tax salary.

As one of Queensland’s leading providers of salary sacrifice and novated leasing services, with more than 25 years’ experience, RemServ has since helped thousands of fellow Queenslanders save tax while driving eco-friendly vehicles.

Novated Leasing Has Helped Drive EV Uptake

Since the EV Discount became law, the number of EV models available in Australia has grown from 56 in 2022 to over 160*, and new-car sales increased from less than 2% to more than 12% by the end of 2025**.

During this time, RemServ has worked closely with the National Automotive Leasing and Salary Packaging Association (NALSPA) to advocate for the extension of the EV Discount for our customers amid a tough economic climate, as well as other industry partners to make sure customers are updated on EV government incentives.

EV Discount Review

The Federal Government's EV incentive is currently under government review, from 6 February 2026 and due to report by mid 2027. A decision can be made on whether to alter, continue or cease the Discount at any time during this timeframe.

We cannot yet confirm whether FBT exemptions on existing leases will be honoured (or “grandfathered”) for the remainder of their lease periods.

We will work closely with our industry contacts and transparently advise customers as soon as we know the outcome of the review.

RemServ Can Help Make the EV Discount Work for You

This government EV incentive has changed the car-buying landscape in Queensland and beyond. For example, in 2022, only two EVs retailed at below $40,000. In 2026, that number jumps to around 10 – and, with the launch of the BYD Dolphin Essential, one below $30,000. Parity between petrol and electric has never been closer.

If you would like to learn more about how you could save tax on an EV through a RemServ novated lease, select your desired vehicle and get your estimated savings here, or call us on 1300 731 429.

* Treasury (Chalmers/Bowen media release): https://minister.dcceew.gov.au/bowen/media-releases/joint-media-release-electric-car-discount-review

** Electric Vehicle Council State of Electric Vehicles 2025: https://electricvehiclecouncil.com.au/wp-content/uploads/2025/10/State-of-EVs_2025_141025-2.pdf

*** EV Council blog (incl. link to EVC’s submission to the Federal Government’s statutory review of the Electric Car Discount): https://electricvehiclecouncil.com.au/media-releases/electric-vehicle-sector-urges-government-not-to-hit-the-brakes-on-electric-car-discount/

**** NALSPA: https://nalspa.org.au/wp-content/uploads/2026/02/Submission-Final-2.pdf