Financial Strategies Group Highlights New EV Tax Break for Australian Families

Matt Young of Financial Strategies Group says many Australian households don’t realise spouses can now share eligible EV novated lease benefits without triggering Fringe Benefits Tax

Aspley, QLD - May 6, 2026-- BRISBANE, Australia — Brisbane-based accounting and advisory firm Financial Strategies Group says many Australian households may be overlooking a significant tax-saving opportunity when considering a new car, with the Fringe Benefits Tax exemption for eligible electric vehicles quietly changing how novated leases can work for families.

While novated leases have long been used by employees to reduce the after-tax cost of running a vehicle, Financial Strategies Group says a key shift is that eligible electric vehicles can now be shared with a spouse or partner for personal use without triggering Fringe Benefits Tax (FBT) — a change that can preserve substantial household savings.

That matters because, under older rules, a partner’s personal use of a novated lease vehicle could create an FBT liability that reduced or even wiped out much of the tax benefit. Under the EV exemption, that barrier has been removed for eligible vehicles.

Financial Strategies Group says this means the benefit is no longer just about one employee salary-packaging a car through work — it can now improve the finances of the broader household.

“For many families, this is the part they haven’t fully understood yet,” said Matt Young, Business Development Consultant at Financial Strategies Group. “A lot of people still assume a novated lease only really works if the employee is the main driver. But with eligible electric vehicles, a spouse or partner can use the car for everyday personal use without creating an FBT problem for the household.”

The firm says the change is especially relevant at a time when households are under pressure from fuel prices, interest rates and broader cost-of-living concerns.

“In practical terms, this can mean thousands of dollars in annual tax savings are preserved rather than lost,” Young said. “For some households, that can materially improve cash flow while also lowering the day-to-day cost of running a vehicle.”

Financial Strategies Group points to a typical scenario where an employee on a salary of $120,000 packages an eligible EV through a novated lease, reducing taxable income and potentially delivering annual tax savings of around $5,000 or more, depending on the structure and vehicle costs.

The firm says the opportunity is still not widely understood in the market, partly because novated leasing has traditionally been seen as complex, and partly because many people are unaware that the EV exemption changes the position for family use.

“There’s a genuine consumer education story here,” Mr Young said. “This is not just an EV story and it’s not just a tax story. It’s also a household budgeting story. If one partner can package the vehicle and both people can use it without extra tax consequences, that changes the value equation for a lot of families.”

Financial Strategies Group also says timing matters, with plug-in hybrid electric vehicles losing their FBT-exempt status from 1 April 2025, meaning the exemption now applies to fully electric and other eligible zero-emissions vehicles rather than PHEVs.

“That change has added another layer of confusion,” Matt said. “People may assume all low-emissions vehicles are treated the same way, but they’re not. It’s important families get advice based on the current rules and their own circumstances.”

The firm says the strategy will not suit every household, as outcomes depend on income, employer salary packaging arrangements and the vehicle selected, but says many families may be underestimating the potential benefit.

Important note

This media release is general information only and should not be relied on as financial or tax advice. Eligibility for EV novated lease tax treatment depends on individual circumstances and current law.

Alternative headlines:

• Brisbane firm says families may be missing out on EV tax savings
• Little-known EV tax rule could save Australian households thousands
• Why sharing an EV with your spouse no longer kills the tax benefit
• Accounting firm says EV novated lease rule is changing household budgets
• Families urged to review EV novated leases as tax rules shift

Short subhead options

• Eligible EVs can now be shared by spouses without triggering FBT, advisers say
• Financial Strategies Group says many households still don’t understand the family benefit
• Cost-of-living pressures are driving fresh interest in EV salary packaging

For journalists who want briefs:

50-word summary

Brisbane-based Financial Strategies Group says many Australian households may be missing a major EV tax break because they don’t realise eligible electric vehicles on novated leases can now be used by spouses without triggering Fringe Benefits Tax. The firm says the change could preserve thousands in annual tax savings for some families.

100-word summary

Financial Strategies Group, a Brisbane accounting and advisory firm, says a little-understood tax change is reshaping the value of EV novated leases for Australian households. Under the Fringe Benefits Tax exemption for eligible electric vehicles, spouses or partners can now use the vehicle for personal purposes without triggering FBT — removing a major barrier that previously reduced tax savings. The firm says this can preserve significant annual savings for some families and may become more relevant as households grapple with fuel prices and cost-of-living pressure. It is also urging consumers to understand the current rules, with plug-in hybrids no longer FBT-exempt from 1 April 2025.

Key facts

• Eligible electric vehicles on novated leases are exempt from Fringe Benefits Tax
• That means a spouse or partner can use the vehicle for personal use without triggering FBT
• This removes a historic barrier that once reduced household savings
• For some employees, annual tax savings can be around $5,000 or more, depending on income and lease structure
• The issue is relevant to cost-of-living, fuel prices, and family budgeting
• Plug-in hybrids lost FBT-exempt status from 1 April 2025
• Outcomes depend on income, employer arrangements, vehicle eligibility and personal circumstances