EV Novated Lease Tax Break Is Ending — Key Dates You Need to Know (2027 & 2029)

The full FBT exemption that made novated leasing an EV one of the smartest financial moves in Australia is being wound back. The government confirmed a three-phase transition in the May 2026 Budget — and depending on the vehicle you are looking at, the timing of your decision could save you thousands. In this video Mitch James breaks down exactly what is changing, when it kicks in, and what you need to do based on your situation. The three key dates: 📅 Now to 31 March 2027 — full FBT exemption continues for all eligible EVs under $91,387 📅 1 April 2027 to 31 March 2029 — full exemption for EVs under $75,000 only; EVs $75,000–$91,387 drop to a 25% discount 📅 From 1 April 2029 — 25% FBT discount only, permanently, for all new arrangements Existing leases are grandfathered. The window to lock in the full exemption is open right now — it will not be this good again. 🔢 Run the numbers on your own EV novated lease: 👉 Novated Lease Transparency Calculator: https://payhip.com/b/GSkF3 Chapters: 00:00 EV Novated Lease Shakeup 00:44 How Novated Leasing Works 01:14 FBT Exemption Explained 01:50 Phase 1 Until Mar 2027 02:15 Phase 2 Split Pricing 02:50 Phase 3 From Apr 2029 03:08 Grandfathering and Caveats 04:10 What To Do Now 05:29 Who Misses Out - Hybrids 05:44 Summary and Next Steps 06:33 Calculator and Wrap Up General information only. Not personal financial or tax advice. Always consider your own circumstances and speak with a licensed professional before making financial decisions. Information current as of May 2026 — verify with the ATO or a qualified adviser.