Evnex pleas with politicians to throw in a tax-free charger along with the car

It’s already cheaper to lease an electric vehicle (EV) than a fossil-fuelled car, but a campaign to make it even more attractive for cost-conscious households by throwing in a tax-free charger as well is gaining traction. 

The federal government removed fringe benefit tax on battery-powered vehicles in 2022 to make it cheaper for companies to lease electric cars costing less than $84,916. 

But chargers, which cost up to $2500 fully installed, weren’t part of the deal despite initial hopes they would be, and a campaign is afoot to change that.

New Zealand company Evnex is calling on EV-friendly federal ministers to adopt recommendations from the novated leasing industry body because it says the exclusion of chargers is hurting manufacturers.

“The purchase and installation of an EV home charger is considered a fringe benefit item, therefore the employer in effect pays double the value of the charger,” Evnex CEO Ed Harvey said in an open letter. 

“Alternatively, the employee pays for the charger out of pocket and not through the salary sacrifice finance arrangement.”

The Evnex plea is based on a July 2024 submission by the National Automotive Leasing and Salary Packaging Association (NALSPA) that wants all equipment and installation for home chargers from cars under novated leases to be fringe benefit tax-exempt.  

The submission to the federal Transport and Infrastructure Net Zero Consultation Roadmap process said countries such as Norway, Sweden, Germany and the UK offer subsidies for home chargers.

When combined with Australia’s mammoth takeup of rooftop solar, which is flooding the grid with cheap, available electricity during the day, incentivising people to use that power at home to fill a car battery is a logical move, the submission suggested.

Not an issue for consumers

The 2022 exemption put a rocket under the novated car leasing industry, with half of leased vehicles now battery electric (BEV), hybrid or plug-in hybrids (PHEVs) – although for the last two it ends on March 31.

But Harvey believes the disincentive to include home chargers in the exemption – a ruling by the Australian Tax Office which says chargers are home improvements and not car equipment – is pushing owners of salary-packaged EVs to rely on public chargers.

This issue, however, is not having any impact on individuals taking out novated leases for personal cars though, says Andrew Kerr, director of novated leasing company Inside Edge.

“Has this caused any reluctance to proceed with an EV purchase? Not really as the tax savings are still so beneficial, most people are realising that the purchase of a charger is just like putting a petrol bowser in your garage. It is a cost worth bearing for the future,” he told The Driven. 

“Where we are seeing some confusion is with the traditional company car market where a company is providing an employee with an EV as a traditional company car.

“[They are asking questions such as] how do you manage the installation of a charger in an employee’s home for a company asset, what happens with FBT and if the employee leaves the organisation? Well crafted novated lease programs alleviate this matter.”

Big savings still available on EVs despite major price reductions

Despite the major price reductions seen among EVs in Australia over the last two years, the savings on offer from novated leasing similar to those on offer when The Driven first reported on what Australians could save in December 2022.

Using Inside Edge figures from 2022 and LeasePlan numbers from 2025, The Driven compared the reduction in take-home pay when paying for a lease out of pre-tax income compared to buying a car on after tax income.

Then and today a person on a $75,000 salary can save about $550 a month on a basic version BYD Atto 3 in a three year lease, compared to about $270 per month for Honda’s HR-V wagon.

An Atto 3 in late 2022 was worth $47,000, while today the base model is $39,990.

The HR-V was priced at $36,700 and that now starts at $34,900.

What will be interesting to watch is whether bigger hybrid vehicles, such as the BYD Shark 6 ute, will attract much attention before the exemption on PHEV and hybrid cars ends on March 31.

Inside Edge’s Simon Kerr released figures showing a Shark 6, which landed in December, could reap $740 in monthly savings for a consumer compared to the petrol Ford Ranger, which yields only $430 a month in savings, for a person on a $150,000 salary.

Ford will miss the boat with its PHEV Ranger, which won’t start deliveries before the exemption ends.