FBT EV Exemption 2027 Australia Calculator
Electric vehicles below the LCT fuel-efficient threshold ($89,332 for 2025-26) are FBT-exempt when provided through novated lease. Saves employer 47% FBT × grossed-up value. Employee saves marginal tax rate on equivalent salary sacrifice — typical $15-25K/year saving.
FBT EV Exemption Rules
Eligible: zero-emissions vehicles (BEV) only after April 1, 2025. PHEVs grandfathered if leased pre-April 2025 with binding novated lease. Hydrogen FCEVs included.
LCT Threshold
Fuel-efficient threshold $89,332 (2025-26) — exemption only applies BELOW this. Above threshold, full FBT applies.
Salary Sacrifice Mechanics
Pre-tax salary funds lease + running costs. Employee shifts $20K from taxable income to lease — saves marginal rate on shifted amount. Lease typically 3-5 years.
Source and Disclaimer
ato.gov.au FBT EV. Verify 2027 threshold via annual LCT update. Government may reform exemption — sunset review possible.
Source: ato.gov.au FBT electric vehicle. Last updated: May 2026.