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Tesla novated lease and FBT from April 2027: which models cross the A$75,000 line
Event date The day Treasurer Jim Chalmers announced the change. It takes effect April 1, 2027. AU
What happened
On May 4, 2026, Treasurer Jim Chalmers announced that the fringe benefits tax (FBT) exemption for electric cars will narrow in two steps. From April 1, 2027, EVs priced from A$75,000 up to the luxury car tax threshold of A$91,387 get only a 25% FBT discount instead of full exemption; from April 1, 2029, all eligible EVs move to the 25% discount (The Driven; Savvy). Existing leases are not affected.
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The two steps
| Lease started | EV up to A$75,000 | EV A$75,000 to A$91,387 | Above A$91,387 |
|---|---|---|---|
| Before April 1, 2027 | Fully exempt | Fully exempt | Standard FBT |
| April 1, 2027 to March 31, 2029 | Fully exempt | 25% FBT discount | Standard FBT |
| From April 1, 2029 | 25% FBT discount | 25% FBT discount | Standard FBT |
Savvy says that once a novated lease is taken out, its tax treatment is locked in for the full term. The Driven reports that existing leases will not be affected. That makes the start date of the lease the deadline, not the delivery date of the car.
Which Teslas sit above A$75,000
Drive Tesla Canada reported Australian prices before on-road costs on October 1, 2026. Model 3 RWD starts at A$45,900, Model 3 Premium RWD stays at A$54,900, and Model Y Performance fell to A$84,900 from A$89,400. On those figures, the Model 3 RWD and Model 3 Premium RWD sit well under the line. Model Y Performance sits inside the band that loses full exemption from April 2027.
The cap test uses the car's value as the tax rules define it, which can differ from the list price before on-road costs, and options can push a car over. Savvy does not define the measure precisely. Check your exact configuration against the ATO's guidance, or ask your lease provider to confirm in writing which side of A$75,000 your car falls on.
Who this affects
Australian employees salary-packaging a Tesla through a novated lease, above all those looking at a Model Y Performance or a heavily optioned car near A$75,000. Private buyers paying cash or using an ordinary loan are not affected by FBT.
What has not changed
- Nothing changes before April 1, 2027. Savvy: no change to current FBT rules before that date.
- Cars at or under A$75,000 stay fully exempt until April 2029.
- The referral benefit is separate. Australia showed A$350 off on Model 3 and Listed, no buyer benefit shown on Model Y, on our capture of Tesla's Australia referral page dated October 4, 2026. It is applied by Tesla at checkout and has nothing to do with FBT.
- No promo code. FBT treatment comes from tax law and your lease contract.
The April 2027 change was announced by the government. Check the ATO's FBT guidance on electric cars for the final rules before signing.
What to do
- Leasing a Tesla priced above A$75,000: start the novated lease before April 1, 2027, if full exemption matters to you.
- Get written confirmation from your lease provider that the lease's FBT treatment is locked in for its full term.
- Ask which value the A$75,000 test uses for your exact configuration, options included.
- Under A$75,000: there is no 2027 deadline for you. The next step is April 2029.
Sources
- A good outcome: Labor to cap FBT exemption for EVs, but not for another two years The Driven, May 4, 2026
- FBT exemption changes: Is now the best time to buy an EV? Savvy, May 5, 2026
- Tesla cuts Model 3 and Model Y prices in Australia and New Zealand Drive Tesla Canada, October 1, 2026