If you’re considering an EV novated lease or a higher-value vehicle, the Luxury Car Tax threshold is worth checking before you make your choice.
For the 2026 to 2027 financial year, the Luxury Car Tax threshold is $91,661 for fuel-efficient vehicles and $80,809 for other vehicles.
That matters because the price of the car can affect not only whether Luxury Car Tax applies, but also the tax treatment available for some electric vehicles.
Why the LCT threshold matters for EVs
For eligible electric vehicles, the EV FBT exemption can make a novated lease much more attractive.
To qualify, the vehicle needs to meet the relevant eligibility rules, including being below the applicable fuel-efficient vehicle Luxury Car Tax threshold.
This is why it’s important to check the total vehicle price before you commit.
A higher-spec model, optional extras, premium paint or accessories can push a vehicle closer to, or above, the threshold.
That can change the overall numbers.
Check the numbers before choosing the car
It’s easy to start with the car you want and think about the finance later.
But if you’re comparing electric vehicles in Australia, particularly through a novated lease, it makes sense to look at the full cost first.
That includes:
- Vehicle purchase price
- Luxury Car Tax
- FBT treatment
- Lease repayments
- Charging costs
- Insurance
- Registration
- Servicing
- Expected resale value
A slightly cheaper EV is not always the better option, and a more expensive one is not automatically out of reach.
The important thing is understanding how the vehicle price affects your overall novated lease savings.
Considering an EV novated lease?
With more EVs entering the Australian market, there are now more options at different price points.
Before placing an order, SupaLease can help you check whether the vehicle is eligible, compare different models and understand what the numbers could look like under a novated lease.
Thinking about an electric vehicle? Check your vehicle eligibility before you commit.
