Labor to Scale Back EV Tax Breaks: What It Could Mean for Car Buyers

The Federal Government is reportedly preparing to scale back the generous electric vehicle (EV) tax concessions that have helped drive a surge in EV purchases across Australia.

Under the proposed changes, Labor is expected to keep the current Fringe Benefits Tax (FBT) exemption in place for the next 12 months before gradually phasing down the policy.

The incentive has been particularly attractive for employees using novated leases, allowing eligible EV buyers to save thousands through reduced tax obligations and lower running costs.

For many Australians, the current rules have made EV ownership significantly more affordable — especially as rising living costs continue to put pressure on household budgets.

Why It Matters - EV Tax Breaks

If the policy is wound back, buyers could eventually face:

• Higher after-tax costs on EV purchases

• Reduced savings through novated leasing

• Less aggressive pricing from manufacturers

• Potential changes in demand across the EV market

The next 12 months may become a key window for buyers wanting to maximise the current incentives before any phase-down begins.

What Borrowers Should Consider

At Brampton Finance, we’re already seeing strong interest from clients looking to secure vehicle finance while the incentives remain available.

Whether you’re purchasing through:

• a novated lease,

• business vehicle finance,

• or standard car finance,

understanding the timing of these policy changes could make a meaningful difference to the overall cost of ownership.

The Bigger Picture

Government incentives helped accelerate EV adoption across Australia, but policymakers now appear focused on transitioning the market toward long-term sustainability without heavy subsidies.

For borrowers, the message is simple: if an EV purchase is already on your radar, acting sooner rather than later could help preserve some of the current financial benefits.

If you’d like to explore your vehicle finance options, the team at Brampton Finance can help you compare solutions tailored to your needs.

📞 02 9389 1077📧 info@bramptonfinance.com.au

Contact Us