EV novated lease checklist

1. Check you're eligible

• Your employer offers novated leasing, and which providers they use.
• The car qualifies for the FBT exemption: a battery electric car under the luxury car tax threshold for fuel-efficient cars.
• Check the current rules with the ATO or your accountant: the exemption is under review and plug-in hybrids lost it from 1 April 2025.
• Ask how it affects your reportable fringe benefits, which can affect things like child support, HECS and some government payments.

2. Questions for the provider

• Interest rate and comparison rate, not just the weekly cost.
• Set-up, monthly admin and early exit fees
• Residual (balloon) payment at the end, in dollars.
• What's in the running-cost budget: charging, home charger, insurance, tyres, servicing and rego.
• What happens to unspent running-cost money at the end of each year.
• Is the car's price the best available? Compare with a dealer's drive-away price.

3. If things change

• If you change jobs: can the lease move to a new employer, or does it become an ordinary loan?
• If you lose your job or go on leave: what are your payments and options?
• If the car is written off: is gap insurance included?
• End-of-lease options: pay the residual, refinance or sell, and any fees.

Notes