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flag Australians are switching to electric vehicles via novated leases for tax savings and lower costs, with EVs now making up 40% of new leases.

flag Australians are increasingly using novated leasing to buy electric vehicles, driven by tax breaks, lower operating costs, and financial savings. flag The federal government’s Electric Car Discount exempts eligible EVs from Fringe Benefits Tax, making them more affordable, especially for middle-income earners. flag Data shows over half of EV drivers report less financial stress, and 60% have lower transport costs. flag EVs made up about 40% of new novated leases in 2023–24—well above the national sales average—led by younger buyers aged 26 to 35. flag While environmental concerns persist, financial benefits now outweigh green motivations for many. flag Nearly half of non-EV drivers say they’d switch if savings were clearer or charging infrastructure improved, signaling continued growth.

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