EV Novated Lease Ownership in Australia: Unlocking FBT Exceptions and Home Charging Claims
- Infinity EV
- Mar 3
- 7 min read
Note: This has republished from CHARGE EV with approval.
If you’re eyeing an electric vehicle (EV) in Australia, a novated lease might just be the smartest way to get behind the wheel. It’s not just about driving greener, it’s about serious tax savings, lower running costs, and the flexibility to charge at home without the usual headaches. With the Fringe Benefits Tax (FBT) exemption still firmly in place for eligible battery electric vehicles in 2026, more Aussies than ever are choosing this route. And when you factor in claiming the energy for electric vehicle charging straight back through your provider, the numbers stack up even better.
Let’s be real, switching to an EV can feel like a big step, especially if you’re used to filling up at the servo. But once you understand how EV novated lease ownership works, particularly the FBT exceptions and home charging reimbursements, it starts to feel like a no-brainer. Whether you’re an individual driver or managing a business fleet, this setup lets you salary-sacrifice the car, running costs, and even electricity for home charging, all before tax. Add in smart tech like Infinity EV PulsePoint for bulletproof reporting, and you’ve got a system that’s both ATO-compliant and genuinely hassle-free.
What Exactly Is EV Novated Lease Ownership?
A novated lease is essentially a three-way deal between you, your employer, and a leasing provider. You pick the car (say, a Tesla or BYD), your employer deducts the lease payments from your pre-tax salary, and at the end of the term you can buy it outright, return it, or roll into something new. For EVs, it’s even sweeter because you can bundle in everything from insurance and servicing to tyres and, crucially, the cost of electric vehicle charging.
Ownership-wise, it’s not full title from day one like buying outright, but you get all the benefits of driving i, and many providers structure it so the residual value at the end gives you a clear path to owning it. The real magic happens with tax treatment. Under a standard petrol car lease, FBT can chew up thousands. With an eligible EV? That burden disappears.
This is where the novated lease option shines for businesses. Larger organisations can tailor packages across multiple vehicles, keeping fleets electric without blowing the budget. It’s perfect for companies shifting to sustainable transport while giving employees a genuine perk that doesn’t cost the business extra FBT.
The FBT Exceptions That Change Everything
The FBT exemption for electric cars has been a game-changer since 1 July 2022, and as of March 2026 it’s still going strong for battery electric vehicles (BEVs). Plug-in hybrids lost eligibility from 1 April 2025, so we’re talking pure EVs here.
Here’s what you need to qualify (straight from the ATO):
The car must be a zero-emissions vehicle (BEV).
It has to be first held and used on or after 1 July 2022.
No Luxury Car Tax (LCT) payable, which basically means staying under the current threshold of around $91,387 for fuel-efficient vehicles.
It’s provided to an employee (or associate) via salary packaging, including novated leases.
If those boxes are ticked, you pay zero FBT on the private use of the car and its associated running costs. That includes registration, insurance, maintenance, and yes, the electricity used to charge it. The exemption applies whether it’s a company car or a novated lease, which is why so many people are jumping on board.
The government is reviewing the exemption by mid-2027, but for now it’s open-ended for BEVs. That means you can lock in long-term savings today. Reportable fringe benefits still apply for your tax return, but the actual FBT bill? Gone.
This single rule is why the cost to lease a Tesla through a novated lease often works out cheaper per week than a much cheaper petrol car. Take a Tesla Model Y, for example. Driveaway prices start around $60,000–$70,000 depending on the variant. On a five-year novated lease with full maintenance, weekly payments can land in the $218–$250 range after tax savings, and that’s including charging costs. Compare that to financing the same car privately and paying FBT-equivalent costs out of your after-tax pocket, and you’re looking at thousands saved over the term. Many drivers report effective weekly costs that feel more like running a $40,000–$45,000 petrol SUV.
Claiming Energy for Home Charging: The Real Money-Saver
Here’s the part most people overlook until they start crunching numbers: you can claim the electricity you use to charge at home directly through your novated lease provider. It’s treated as a reimbursable car expense, and because the whole setup is FBT-exempt, the reimbursement comes out pre-tax too.
There are two approved ways to do this (per ATO guidance PCG 2024/2):
The shortcut method - Simple and popular for most home chargers. You claim a flat 4.2 cents per kilometre driven, based on the percentage of charging done at home. No invoices or sub-meters required - just keep odometer records. Great if you don’t have a dedicated smart setup. Visit https://www.chargeev.com.au/novated for pro's and con's on using the shortcut method.
The actual cost method - More precise and often better value. You measure the exact kWh your EV uses at home and multiply by your electricity rate. This lets you claim public charging separately too, and it’s perfect for heavier users or those with off-peak tariffs.
The actual method is where things get interesting, and where smart technology makes all the difference. Without proper records, your provider might push back or default you to the shortcut rate. That’s exactly why tools designed for this purpose are worth their weight in gold.
How Infinity EV PulsePoint Delivers Accurate Reporting for Home Charging Claims
This is where Infinity EV PulsePoint steps in and makes the whole process seamless. PulsePoint is a clever cloud-based reporting platform specifically built for novated leases and fleet vehicles charging at home. It pairs with a self-install Powersensor that clips onto your home energy meter and EV charger (works brilliantly with portable mobile chargers and fixed wall chargers.
Here’s how it works in plain English:
The Powersensor monitors your household power in real time and isolates exactly how much electricity your EV is pulling.
Data flows straight to the PulsePoint cloud.
You get beautiful, up-to-the-hour reports showing kWh used, estimated CO₂ saved, and even a calculated reimbursement figure based on your electricity rate.
Weekly or monthly PDF and Excel exports, ready to email straight to your novated lease provider.
No more manual spreadsheets. No more arguing over estimates. Your provider gets clean, ATO-compliant data that supports the actual cost method, which often means higher reimbursements than the shortcut rate. For businesses running a novated lease, the platform scales beautifully, multiple drivers, multiple chargers, centralised reporting, and even API options for larger teams.
And the best bit? It’s affordable, around $12 a month (billed monthly) or $120 a year (billed annually). When you compare that to the potential extra reimbursement you unlock (or the peace of mind knowing your claims won’t get questioned), it pays for itself in the first couple of months.
Many drivers pairing PulsePoint with a reliable single phase BYD charger, Tesla Charger or any other AC charger are seeing the full benefits. Add PulsePoint and you’ve got a complete electric vehicle charging ecosystem that’s purpose-built for novated lease claims.
Why Businesses Love Custom Fleet Novated Lease Options
For employers, offering a novated lease on EVs is a win-win. It helps attract and retain talent with a tax-effective salary package, reduces the company’s FBT liability to zero on eligible vehicles, and supports ESG goals.
When employees use something like Infinity EV PulsePoint, the admin side becomes almost invisible. Fleet managers get clean reports, employees get fair reimbursements, and everyone stays compliant.
If you’re a business seeking expert support and guidance on making the shift to electric, from vehicles to charging infrastructure and complete business integration, our partners at Infinity EV have you covered.
Choosing the Right Home Charging Setup
If you’re going down the novated lease path, don’t skimp on your charger. As the saying goes "A poor person pays twice". Do it right the first time and a good charger will service you for many years to come. A quality charger will cut charging times dramatically compared to a standard power point, and when paired with PulsePoint you’ve got the reporting side sorted. Charge EV stocks a great range of solutions tailored for private homes, businesses, strata apartments, and fleets, including bundles that make adding PulsePoint straightforward.
Wrapping It Up: The Future of Driving Is Lease-Shaped
EV novated lease ownership isn’t just about getting a cool car (who are we kidding, it absolutely is!), It’s about restructuring how you pay for it so you keep more of your hard-earned money. The FBT exceptions remove one of the biggest barriers, while home charging claims through your provider slash running costs even further. And with Infinity EV PulsePoint handling the reporting, the whole thing becomes effortless.
Whether you’re calculating the cost to lease a Tesla, exploring a custom fleet novated lease for your business, or just want reliable electric vehicle charging at home, the pieces are all there.
Ready to make the switch? Chat to your novated lease provider about your new car and chargeev.com.au for the right charging hardware, we have everything you need to get started. Drive electric, claim smart, and enjoy the ride.
EV Friendly Novated Lease Companies You Could Consider
Disclaimer:
This information is provided in good faith and may not be 100% accurate or up to date with the latest ATO rulings or lease provider policies. It is not financial advice, tax advice or a recommendation to enter any lease arrangement. You should always seek independent professional advice from a qualified financial adviser, accountant or your chosen novated lease provider before making any decisions. Rules around FBT exemptions, reimbursement methods and reportable fringe benefits can change, so please verify everything directly with the ATO and your provider.
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