Accountants Urge Treasury to Protect EV Lease Orders from Delivery Delays

Australia's peak accounting bodies are urging the Federal Government to fix potential blind spots in draft laws that will gradually wind back the electric vehicle discount. In formal submissions on the draft legislation, CPA Australia cautioned that everyday car buyers could be caught out by shipping delays and administrative hurdles entirely outside their control.

Under proposed laws released by Treasury, the current fringe benefits tax (FBT) exemption for zero-emission vehicles will shift in stages toward a permanent 25 per cent discount. While the full exemption stays untouched until 31 March 2027, vehicles costing more than $75,000 will move to a partial discount from 1 April 2027, with the broader market following two years later. Existing agreements are slated to be protected under grandfathering provisions.

However, CPA Australia highlighted that the current exposure draft relies heavily on technical delivery and formal financing dates rather than when a driver actually commits to a car. Because wait times on popular models can stretch for several months, an employee could sign an order well before the deadline only to see their car arrive after the rules tighten, instantly triggering higher tax costs.

To prevent unfair outcomes, the accounting body is calling for early commercial steps—such as an executed dealer order or an approved salary sacrifice agreement—to qualify as a binding commitment. It has also requested a delivery safe harbour window, indexation on the proposed $75,000 price cap, and confirmation that changing employers during a lease will not forfeit an existing vehicle's grandfathered status.

What this means for your novated lease

While the proposed changes are still in draft form, they offer valuable guidance if you are planning your next vehicle:

• Order timing will matter more: If you intend to salary package an electric car priced above $75,000, you will want delivery completed well before 31 March 2027 to avoid being caught by unexpected factory or transport delays.
• Existing leases remain safe: If you already drive an electric car under an active novated lease, your current full exemption is intended to continue throughout your agreed term.
• Budget for fringe benefits reporting: The accounting industry is also asking the government to streamline how novated leases interact with reportable fringe benefits amounts, helping ensure salary packaging does not produce unforeseen impacts on government family assistance or student loan repayments.
• Clarify vehicle lead times with your provider: Before locking in a build, ask your dealer and leasing consultant about guaranteed stock availability and expected arrival dates so your paperwork lines up smoothly.