PHEV stands for ‘Plug-in Hybrid Electric Vehicle’ and is an electric vehicle that has both an internal-combustion engine (ICE) that uses petrol, and a battery-powered electric motor. This battery-powered motor is the main power source for the car, while the ICE is on standby as an emergency back-up for when your battery starts to run low.

Please note: From 1 April 2025, a plug-in hybrid electric vehicle is no longer considered a zero or low emissions vehicle under FBT law. However, your employer can continue to apply the exemption if both the following requirements are met: 1) Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue using the vehicle for private use on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding. To qualify for the EV discount, plug-in hybrid electric vehicles must have been delivered by midnight on 31 March 2025. Due to high demand and stock limitations there may be some vehicles that do not meet the delivery deadline for the EV Discount. Customers are advised to confirm delivery timelines before proceeding with their order.

To qualify for the EV discount, plug-in hybrid electric vehicles must be delivered by midnight on 31 March 2025. Due to high demand and stock limitations there may be some vehicles that do not meet the delivery deadline for the EV Discount. Customers are advised to confirm delivery timelines before proceeding with their order. After March 31, pre-existing PHEV leases are still entitled to the FBT exemption until the end of their lease (unless the lease is broken), as long as a commitment is made before 1 April 2025.

Please note: From 1 April 2025, a plug-in hybrid electric vehicle is no longer considered a zero or low emissions vehicle under FBT law. However, your employer can continue to apply the exemption if both the following requirements are met: 1) Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue using the vehicle for private use on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding. To qualify for the EV discount, plug-in hybrid electric vehicles must have been delivered by midnight on 31 March 2025. Due to high demand and stock limitations there may be some vehicles that do not meet the delivery deadline for the EV Discount. Customers are advised to confirm delivery timelines before proceeding with their order.

The Australian Taxation Office (ATO) has released advice that from 1 April 2025 plug-in electric hybrids vehicles (PHEVs) will no longer be classified as zero or low emissions vehicles under FBT law. This means that the FBT exemption will not apply to new PHEV leases entered into from 1 April 2025.

PHEVs leased before 1 April 2025 will remain eligible for the FBT exemption if the following two requirements are met:

1. Use of the PHEV was already exempt from FBT before 1 April 2025; and
2. There is a financially binding commitment to continue providing private use of the vehicle to an employee or their associate on or after 1 April 2025.

Please note: From 1 April 2025, a plug-in hybrid electric vehicle is no longer considered a zero or low emissions vehicle under FBT law. However, your employer can continue to apply the exemption if both the following requirements are met: 1) Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue using the vehicle for private use on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding. To qualify for the EV discount, plug-in hybrid electric vehicles must have been delivered by midnight on 31 March 2025. Due to high demand and stock limitations there may be some vehicles that do not meet the delivery deadline for the EV Discount. Customers are advised to confirm delivery timelines before proceeding with their order.

A financially binding commitment needs to be in place by 1 April 2025 for the exemption to apply.

This means that:

1. a customer / employee has ordered and received a car by way of a novated lease arrangement, and
2. there is a financial penalty if the order is cancelled.

In practice, this means that the vehicle has been delivered and available for use and a signed lease agreement is in place – prior to 1 April 2025.

Please note: From 1 April 2025, a plug-in hybrid electric vehicle is no longer considered a zero or low emissions vehicle under FBT law. However, your employer can continue to apply the exemption if both the following requirements are met: 1) Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue using the vehicle for private use on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding. To qualify for the EV discount, plug-in hybrid electric vehicles must have been delivered by midnight on 31 March 2025. Due to high demand and stock limitations there may be some vehicles that do not meet the delivery deadline for the EV Discount. Customers are advised to confirm delivery timelines before proceeding with their order.

All existing PHEV leases will be honoured provided there are no breaks in the commitment to the use of the PHEV, such as change in employment or unpaid leave. More information on “breaks” below.

Please note: From 1 April 2025, a plug-in hybrid electric vehicle is no longer considered a zero or low emissions vehicle under FBT law. However, your employer can continue to apply the exemption if both the following requirements are met: 1) Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue using the vehicle for private use on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding. To qualify for the EV discount, plug-in hybrid electric vehicles must have been delivered by midnight on 31 March 2025. Due to high demand and stock limitations there may be some vehicles that do not meet the delivery deadline for the EV Discount. Customers are advised to confirm delivery timelines before proceeding with their order.

If a customer moves employer, the change of employer will trigger a new commitment and a loss of the FBT exemption. This is because the ATO view a change of employer as a new commitment to the availability of the car by the new employer. This applies to a change of a new employer even within the same group of companies.

Please note: From 1 April 2025, a plug-in hybrid electric vehicle is no longer considered a zero or low emissions vehicle under FBT law. However, your employer can continue to apply the exemption if both the following requirements are met: 1) Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue using the vehicle for private use on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding. To qualify for the EV discount, plug-in hybrid electric vehicles must have been delivered by midnight on 31 March 2025. Due to high demand and stock limitations there may be some vehicles that do not meet the delivery deadline for the EV Discount. Customers are advised to confirm delivery timelines before proceeding with their order.

If an employee on leave does not use the PHEV during their absence, this can interrupt the existing agreement, potentially affecting the FBT exemption.

• Note that if an employee goes on unpaid leave but prepays the lease payments in advance and the novation does not stop, there would be no change in the commitment and the FBT exemption would be maintained

We encourage customers to check the ATO website to understand leave impacts on their PHEV lease.

Please note: From 1 April 2025, a plug-in hybrid electric vehicle is no longer considered a zero or low emissions vehicle under FBT law. However, your employer can continue to apply the exemption if both the following requirements are met: 1) Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue using the vehicle for private use on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding. To qualify for the EV discount, plug-in hybrid electric vehicles must have been delivered by midnight on 31 March 2025. Due to high demand and stock limitations there may be some vehicles that do not meet the delivery deadline for the EV Discount. Customers are advised to confirm delivery timelines before proceeding with their order.

If you go on parental leave and continue to pay the lease payments/running costs through your salary packaging balance during the period of leave, the PHEV exemption would continue as there is no change to the financial commitment. If you go on parental leave, cease your novation agreement and make lease payments direct to the financier, we would terminate your account. You would be required to sign a new novation agreement upon return from parental leave to commence the packaging again. In this instance, the PHEV exemption would cease as there is a change to the financial commitment by terminating the original novation agreement and then taking on a new novation agreement upon return.

Please note: From 1 April 2025, a plug-in hybrid electric vehicle is no longer considered a zero or low emissions vehicle under FBT law. However, your employer can continue to apply the exemption if both the following requirements are met: 1) Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue using the vehicle for private use on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding. To qualify for the EV discount, plug-in hybrid electric vehicles must have been delivered by midnight on 31 March 2025. Due to high demand and stock limitations there may be some vehicles that do not meet the delivery deadline for the EV Discount. Customers are advised to confirm delivery timelines before proceeding with their order.

If a TOTAL LOSS occurs and the PHEV is replaced (like for like), standard change of asset documentation is required, and the exemption will still apply. Note that the replacement vehicle must be noted on the existing contract and all other contract details including pricing and end date must remain the same.

Please note: From 1 April 2025, a plug-in hybrid electric vehicle is no longer considered a zero or low emissions vehicle under FBT law. However, your employer can continue to apply the exemption if both the following requirements are met: 1) Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue using the vehicle for private use on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding. To qualify for the EV discount, plug-in hybrid electric vehicles must have been delivered by midnight on 31 March 2025. Due to high demand and stock limitations there may be some vehicles that do not meet the delivery deadline for the EV Discount. Customers are advised to confirm delivery timelines before proceeding with their order.

No. The car needs to be physically available for the customer by 1 April 2025 to quality for the exemption.

Please note: From 1 April 2025, a plug-in hybrid electric vehicle is no longer considered a zero or low emissions vehicle under FBT law. However, your employer can continue to apply the exemption if both the following requirements are met: 1) Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue using the vehicle for private use on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding. To qualify for the EV discount, plug-in hybrid electric vehicles must have been delivered by midnight on 31 March 2025. Due to high demand and stock limitations there may be some vehicles that do not meet the delivery deadline for the EV Discount. Customers are advised to confirm delivery timelines before proceeding with their order.

The ATO has cautioned against breaking leases and re-leasing prior to 1 April 2025.

Please note: From 1 April 2025, a plug-in hybrid electric vehicle is no longer considered a zero or low emissions vehicle under FBT law. However, your employer can continue to apply the exemption if both the following requirements are met: 1) Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue using the vehicle for private use on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding. To qualify for the EV discount, plug-in hybrid electric vehicles must have been delivered by midnight on 31 March 2025. Due to high demand and stock limitations there may be some vehicles that do not meet the delivery deadline for the EV Discount. Customers are advised to confirm delivery timelines before proceeding with their order.

If a new lease agreement was required, this would constitute a break in the existing lease agreement and a new financially binding commitment. If the new lease agreement is entered into on or after 1 April 2025 for a PHEV, the exemption will no longer be available from the date the existing lease agreement ceases. However, if an administrative change takes place and a new lease agreement is not required, the PHEV exemption held would still apply.

Please note: From 1 April 2025, a plug-in hybrid electric vehicle is no longer considered a zero or low emissions vehicle under FBT law. However, your employer can continue to apply the exemption if both the following requirements are met: 1) Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue using the vehicle for private use on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding. To qualify for the EV discount, plug-in hybrid electric vehicles must have been delivered by midnight on 31 March 2025. Due to high demand and stock limitations there may be some vehicles that do not meet the delivery deadline for the EV Discount. Customers are advised to confirm delivery timelines before proceeding with their order.

EVs – or Battery Electric Vehicles (BEVs) – are solely electric vehicles. This means that you plug it into a charger, and it uses only available battery power to drive.

Plug-in-hybrid vehicles – or PHEVs – have petrol motor and electric motor components; a halfway point between fuel-powered cars and electric cars if you like. You need to charge the batteries for the electric motor component. However, their electric-only driving range is generally short – between 40 to 100 kilometers. From there it will switch over to the motor and conventional fuel.

The other type of hybrid is the more traditional non-plug-in hybrid (HEV). These have been in the market for around 20 years since the launch of the Toyota Prius. HEVs run on both an internal combustion engine and a battery, but the difference is you cannot charge HEVS; they use energy stored in the battery from what is called ‘regenerative braking’.

Both provide advantages. A PHEV might suit someone who lives inner city, where trips are commonly short in duration and distance, so that the vehicle can mainly use the electric power it has without needing to significantly access the motor.

The benefit continues for longer trips away, where charging infrastructure may not be as readily available, and the vehicle is able to rely solely on its engine.

An electric vehicle doesn’t require fuel and because it has fewer moving parts to service (including no engine or transmission), it should generally be cheaper to operate overall. However, you need to charge the battery at regular intervals, so some pre-planning will be needed for longer trips.

It depends on the number of kilometres driven, but the main way you could save is in relative fuel costs versus electricity costs. You could pay more than one-third less on electricity compared to fuel costs for the same car with the same number of kilometres travelled. Over the vehicle’s life, servicing costs will likely be less for an electric vehicle given the absence of regular car parts including engine, transmission, head gasket, filters and spark plugs.

Most new EV sales include an entry level charger which simply connects to a normal electricity power outlet that you would have at home, with faster, more advanced chargers available for an optional cost – expect to pay somewhere in the vicinity of $2,000 to $3,000. These units – which cannot be packaged as part of a novated lease - charge much faster and provide other benefits in terms of monitoring and re-charging your vehicle.

There are also many public charging solutions available. The Electric Vehicle Council of Australia website lists all the charging stations around Australia, the type of chargers – from entry level to DC Superchargers – and leading charging infrastructure providers.

Many of Australia’s most popular car brands produce EVs now, including Tesla, MG, Nissan, Hyundai, BMW, Mini, Mercedes, Jaguar, Volvo, Land Rover and Porsche. Other brands also plan to bring many more EVs to Australia in the near future.

EVs from many of Australia’s most popular manufacturers are available. This page, from the Electric Vehicle Council of Australia, lists them all:

To discover Maxxia’s range of EVs: Click here

All industry predictions indicate that this is likely to happen – particularly given the range of new, well-optioned and range-capable models introduced to the market recently.

As technology changes and more EVs hit the market, charging times are decreasing significantly. Entry-level chargers supplied with EVs can take up to 30 hours to full charge a vehicle; this timeframe reduces to overnight with higher capacity chargers. We recommend talking with your dealer on the estimated charging time, to consider if a higher capacity charger at extra cost is a worthwhile investment

Public or roadside chargers can be much faster – often providing 120km of charge capacity within 45 minutes depending on what vehicle you have. These can be convenient for leaving to charge while you have an appointment, shopping or work to attend to.

 Super-charge stations – dotted across the populous parts of Australia – can add up to 300 kilometres of range in just 10 to 15 minutes.

With recent technology advancements, most modern EVs can drive for 500 or more kilometres on a single charge. If you’re only doing short trips, you can probably go without charging for a week or more, but long trips require a full charge before setting off, and pre-planning on where to top up next. It’s worth also noting that some EVs offer extended range battery capacity options; we recommend you chat with your dealer about their availability.

With normal driving conditions, most EV batteries should be able to last up to 10 years before they need to be replaced.

There are numerous studies that show that fires in EVs are no more likely to occur than fires in Internal Combustion Engine Vehicles (ICEVs). Australian fire and rescue organisations do not treat EVs as any more dangerous than ICEVs. All vehicles sold new in Australia, including EVs, must adhere to strict Australian Vehicle Standards Rules.

Yes, however EVs that have the ability to tow are limited by both model type and towing capability. We anticipate this to evolve over time as EV technology improves. In the meantime, we recommend discussing any towing requirements you may have with your Maxxia consultant or dealer before committing to a novated lease on the vehicle.

We recommend you visit the website of the Electric Vehicle Council of Australia; they are the national body that represents the electric vehicle industry in Australia. The Australian Government’s Green Vehicle website also has valuable information on the environmental performance of light vehicles sold in Australia. And, of course, we are here to help answer any of your questions.

An electric car requires servicing at the same intervals as any car. While an EV has less moving parts than a regular petrol vehicle, many of the servicing elements remain the same – such as tyre wear and tear, brake fluid changes, suspension and general safety checks. When it comes to support at service time, Maxxia’s experienced Maintenance Team can help ensure the work and associated costs are fair and reasonable.

Yes, you can salary package electricity costs within your EV lease. You must be able to demonstrate specifically how much energy – and the cost of the energy – is going towards charging your EV. This can be either obtained through a separate smart meter installed in your home, or by purchasing a fast, in-home charger with the metering included within it.

While FBT legislation does not yet allow the cost of a third-party supplier charger to be covered by a novated lease, if a new EV is purchased and the charger is included within the vehicle cost then yes, that cost can be packaged.

Some public chargers are free for use; these are generally located at shopping centres. Others will charge you for electricity provided via a credit card. Keep the receipts from these stations to claim through your MyCar Account.

Yes, there are a few. Firstly, you need to consider the average range you want to drive in your vehicle. Many EVs have options to pay for higher range capacity battery packs, meaning the vehicle can drive further. This, however, means charging can take longer. A vehicle’s range depends on the type of driving conditions, and whether you continuously use the heater or air conditioner. You should assess if the EV you are interested in acquiring through a novated lease has higher cost options to extend the vehicle’s range.

Additionally, you may need to consider a faster charger if you’re time pressed. These can cost as much as $3,000, including installation costs, but with a considerably quicker charge time. 

Maxxia can provide insurance on all makes and models of EVs other than Tesla. You can also arrange your own insurance, although please bear in mind that not all insurance providers will cover electric vehicles.

As there are few moving parts to an EV, the likelihood of a breakdown is less likely – unless you run out of power, of course. In the event this happens, you can simply call our roadside assistance service as you would do with a petrol vehicle. Alternatively, plug it into the nearest power point.

It’s worth noting, too, that some roadside assistance companies are updating their roadside service to provide a 20- to 30-minute top-up charge to get the car to the nearest charge station.