It's official: PHEVs Are Out. EVs Are In.
Plug-in hybrids had their moment. But as of 1 April 2025, they no longer qualify for the Electric Car Discount in Australia.
If you’re looking to lease a car that delivers on tax savings, lower running costs, and zero fuel stops—Fully electric vehicles are the way forward!
The good news? You can still get all the benefits by choosing a full EV that fits your lifestyle just as well.
To discover every car eligible for the electric car discount visit our EV Hub.
What Has Changed?
Until recently, both plug-in hybrid vehicles (PHEVs) and battery electric vehicles (BEVs) qualified for the Fringe Benefits Tax (FBT) exemption under the Federal Government’s Electric Car Discount.
That changed from 1 April 2025. Only full battery EVs are now eligible.
Do not fret, we've consulted our Novated Leasing specialists to find smart EV swaps that keep you in a similar ride—while still ensuring you achieve financial and environmental outcomes that come with the electric car discount.
Here are some smart swaps—keeping you in the same vehicle segment, often within the same brand, but with more savings.
From BYD Sealion 6 (PHEV) → BYD Sealion 7 (EV)
Why it’s smart: Same SUV feel, more range, and a fully electric powertrain. The Sealion 7 offers up to 570 km of electric driving with sleek cabin tech.
Bonus: Same brand, same platform—just more savings and zero fuel stops.
From MG HS Plus EV → MG4 Electric
Why it’s smart: Lower starting price, strong range, and great tech. The MG4 is one of Australia’s most affordable EVs.
Bonus: Qualifies for EV incentives and cuts your fuel and servicing costs.
From Mitsubishi Outlander PHEV → Hyundai IONIQ 5
Why it’s smart: A futuristic, full-size electric SUV with long range and spacious interior. While not a Mitsubishi, the IONIQ 5 is comparable in size and purpose.
Bonus: It’s an award-winning electric SUV that feels like a true upgrade.
From Volvo XC60 Recharge → Volvo EX30 or EX40
Why it’s smart: If you love Volvo’s premium comfort and safety, these EVs offer a natural transition. The EX30 is smaller but packed with features; the EX40 keeps the SUV shape.
Bonus: Volvo EVs are stylish, sustainable, and tax-friendly.
From Kia Sorento PHEV → Kia EV6
Why it’s smart: While the Sorento PHEV offered space and flexibility, the EV6 gives you that and more—sporty performance, sleek design, and strong range.
Bonus: You’re still in a Kia, just one that’s fully electric and future-proof.
The electric car discount has provided the opportunity to Australian Drivers to achieve savings on their electric car by offering a Fringe Benefits Tax (FBT) exemption.
To discover every car eligible for the electric car discount visit our EV Hub.