Novated leasing hits record uptake as EV salary packaging surges
Source: Australian Fleet Management Association
Industry data shows novated lease volumes reached new highs in 2025, driven largely by electric vehicle uptake through employer salary packaging programs.
Novated leasing has experienced unprecedented growth in Australia, with fleet management providers reporting record application volumes through 2025.
The primary driver has been the combination of the EV FBT exemption (introduced July 2022) and rising fuel costs making salary-packaged running costs increasingly attractive for employees in higher marginal tax brackets.
Major fleet providers including SG Fleet, Maxxia, and Smartleasing have expanded digital quote and onboarding platforms, reducing approval times from weeks to hours in many cases.
Analysts note that the announced 2027 phase-down of the EV exemption may accelerate lease uptake through early 2027 as employees seek to lock in grandfathered arrangements.
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