Electric Vehicle Loans Australia

Australia is in the middle of an electric vehicle boom. In 2025, battery electric vehicles, plug-in hybrids and hybrids combined accounted for over 13% of all new vehicle sales in Australia, up from 9.6% the year before. Around 130,000 Australians made the switch to electric and hybrid vehicles in 2025 alone, representing over $7 billion in vehicle financing. If you are considering buying an EV, you are joining one of the fastest-growing buyer segments in the country, and the finance options available to you are more competitive than ever.

Australian Finance & Loans is an independent finance broker with access to over 50 Australian lenders. We compare green car loans, standard secured car loans, chattel mortgages, finance leases and novated lease options across the entire market to find the most competitive structure for your specific EV, your employment situation and your tax position. EV finance has some unique considerations that standard car loans do not, including discounted green loan rates, the FBT exemption for eligible vehicles and state-based incentives that vary significantly depending on where you live. We explain all of it on this page.

Electric Vehicles We Finance

We arrange finance for all electric and low-emission vehicles available in Australia through authorised dealers, including:

Battery Electric Vehicles (BEVs)

• Tesla: Model 3, Model Y, Model S, Model X and Cybertruck

• BYD: Atto 3, Seal, Dolphin, Shark and Sealion 6

• Hyundai: Ioniq 5, Ioniq 6 and Ioniq 9

• Kia: EV6, EV5 and EV9

• BMW: iX, i4, i5 and i7

• Mercedes-Benz: EQA, EQB, EQC, EQE and EQS

• Audi: Q4 e-tron, Q6 e-tron and e-tron GT

• Polestar: Polestar 2, Polestar 3 and Polestar 4

• Volvo: EX30, EX40 and EX90

• MG: MG4, MG ZS EV and MG Cyberster

• Nissan: Leaf and Ariya

• GWM Ora, Chery Omoda E5 and other emerging brands

• Lucid Air and other imported premium EVs

Plug-In Hybrid Electric Vehicles (PHEVs)

• Mitsubishi Outlander PHEV and Eclipse Cross PHEV

• Toyota RAV4 PHEV and Landcruiser 70 Series PHEV

• Hyundai Tucson PHEV and Santa Fe PHEV

• Ford Escape PHEV

• BMW X1, X3 and X5 PHEV models

• Volvo XC40 and XC60 PHEV

• Kia Sorento PHEV and Sportage PHEV

Note: PHEVs lost their FBT exemption from 1 April 2025. This means PHEVs are no longer eligible for the same tax benefits under a novated lease as fully electric vehicles. Finance is still available for PHEVs through standard car loan and chattel mortgage structures. See the FBT section below for full details.

Types of EV Finance We Arrange

Green Car Loan (Secured)

A green car loan is a standard secured car loan offered at a discounted interest rate specifically for electric and eligible low-emission vehicles. Many lenders on our panel offer green car loan rates that are 0.50% to 1.50% per annum lower than their standard car loan rates. Green loan rates currently start from approximately 5.49% per annum for eligible EVs with strong credit profiles. Because the loan is secured against the vehicle, rates are lower than unsecured personal loans. You own the vehicle from settlement and make fixed repayments over the agreed term.

Standard Secured Car Loan

A standard secured car loan works for any electric vehicle, including those that do not qualify for a lender's specific green loan product. The vehicle is used as collateral, giving the lender security and resulting in lower rates than unsecured borrowing. Rates for secured EV loans currently range from approximately 5.99% to 12.99% per annum depending on your credit profile and the lender.

Chattel Mortgage (Business Use)

If you are buying an electric vehicle primarily for business use, a chattel mortgage is typically the most tax-effective structure. Your business owns the EV from settlement. You can claim the full GST on your next BAS, deduct the interest component of repayments and depreciate the vehicle over its ATO effective life. The EV must be used for business purposes at least 51% of the time. Chattel mortgages are available for both personal and business use EVs but deliver the greatest tax benefit when the vehicle is genuinely used for business.

Finance Lease (Business Use)

Under a finance lease the lender owns the vehicle and leases it to your business. All lease payments are fully deductible as a business operating expense. At the end of the term you can purchase the EV at the residual value, extend the lease or hand it back. Finance leases are popular with businesses that want to upgrade their EV fleet every three to four years as battery technology improves.

Novated Lease (Employees and Salary Packagers)

A novated lease is a three-way arrangement between you, your employer and a financier. Your employer makes lease payments on your behalf from your pre-tax salary, reducing your taxable income. Running costs including charging costs, registration, insurance and servicing can also be bundled into the pre-tax arrangement. For eligible battery electric vehicles under the FBT exemption, a novated lease is one of the most powerful tax strategies available to Australian employees and can save $10,000 to $18,000 per year in tax on a $60,000 EV compared to salary sacrificing a petrol vehicle.

Personal Loan for EV Purchase

An unsecured personal loan can be used to purchase an electric vehicle, particularly for older or lower-value EVs that do not meet secured lender criteria. Interest rates are higher than secured loans but the loan is not tied to the vehicle. This is less common for new EV purchases where secured green car loans deliver significantly better rates.

The FBT Exemption for Electric Vehicles: Everything You Need to Know

The Fringe Benefits Tax exemption for electric vehicles is the single most important financial incentive available to Australian EV buyers who are employees or company directors. Understanding how it works, what has changed recently and what is happening with the review is essential before you decide how to structure your EV purchase.

What is the FBT Exemption?

Fringe Benefits Tax is normally charged at 47% on the taxable value of a car provided to an employee through a novated lease or salary packaging arrangement. The EV FBT exemption, introduced from 1 July 2022 under the Electric Car Discount Act, removes this FBT liability entirely for eligible electric vehicles. This means an employee can salary package an eligible EV and pay for it entirely from pre-tax income without triggering an FBT obligation, dramatically increasing the tax savings available compared to a standard novated lease on a petrol vehicle.

Which Vehicles Are Eligible for the FBT Exemption?

To qualify for the FBT exemption, the vehicle must meet all of the following criteria:

• It must be a battery electric vehicle (BEV) or hydrogen fuel cell electric vehicle (FCEV)

• It must be first held and used on or after 1 July 2022

• It must never have been subject to Luxury Car Tax (LCT) at any point in its history

• The vehicle's GST-inclusive price must be below the fuel-efficient LCT threshold, which is $91,387 for the 2026-27 financial year

• It must be used by a current employee or their associates under a salary packaging arrangement

What Happened to PHEVs?

From 1 April 2025, plug-in hybrid electric vehicles are no longer eligible for the FBT exemption. This was a significant policy change that caused a sharp drop in PHEV novated lease demand. PHEVs committed to before 1 April 2025 where the vehicle was already in use may continue under the exemption. New PHEV novated leases entered from 1 April 2025 onwards do not qualify. If you are considering a PHEV, finance is still available through standard car loans and chattel mortgages, but the novated lease tax advantage no longer applies.

How Much Can the FBT Exemption Save You?

On a $60,000 eligible electric vehicle, the FBT exemption can save approximately $10,000 to $18,000 per year in tax compared to salary sacrificing a petrol vehicle at the same price. Over a typical three-year novated lease, total savings can exceed $30,000 depending on your income, the vehicle cost and how running costs are packaged. These figures vary significantly based on your salary, tax bracket and how the lease is structured. We work through the numbers with you to confirm the actual saving before you commit.

What is the Future of the FBT Exemption?

The federal government is conducting a formal review of the FBT exemption for electric vehicles, with a report due by mid-2027. In December 2025 the government announced this review. While no changes have been confirmed, possible outcomes include a lower vehicle value cap, reduced discount level or means testing. The exemption remains in place as of March 2026. If you are considering an EV through a novated lease, acting while the current generous terms apply is advisable. We will keep clients updated as the review progresses.

Government Incentives for EV Buyers in Australia (2026)

State and federal incentives for EV buyers have changed significantly over the past two years. Many rebate programs have now closed. Here is the current status as of early 2026.

Federal Incentives (Available Nationally)

• FBT exemption: Battery electric vehicles under $91,387 provided through a novated lease are exempt from FBT. Available until at least mid-2027 subject to review.

• Higher LCT threshold: EVs benefit from the fuel-efficient vehicle LCT threshold of $91,387 compared to $80,567 for standard vehicles, allowing purchase of higher-spec models without incurring Luxury Car Tax.

• Zero import duty: Eligible EVs below the LCT threshold attract 0% customs duty, reducing the base purchase price.

Northern Territory

• Free registration for BEVs and PHEVs: OPEN until 30 June 2027. Applied automatically.

• Stamp duty concession of up to $1,500 for vehicles valued up to $50,000: OPEN until 30 June 2027.

• The NT is currently the only jurisdiction still offering both free registration and stamp duty concessions.

Australian Capital Territory

• Low-interest EV loan: Available at 3% per annum (reduced from 0% before July 2025), repayable over up to 10 years for ACT residents.

• Stamp duty exemption: CLOSED as of 31 December 2023.

• $2,000 EV rebate: CLOSED, funding exhausted.

Other States

• New South Wales: $3,000 purchase subsidy ended December 2024. Three-year registration exemption for new BEVs registered before 30 June 2025 still applies to those eligible.

• Victoria: Zero Emissions Vehicle Subsidy closed to new applicants.

• Queensland: Previously offered registration concessions for new BEVs first registered before June 2025. Check current status with Transport and Main Roads.

• Western Australia: $3,500 ZEV rebate scheme closed to new applicants on 10 May 2025.

• Tasmania: $2,000 rebate program closed.

• South Australia: Standard registration rates apply. No active EV-specific incentives as of early 2026.

State incentives change frequently. We recommend checking directly with your state transport authority for the most current information before making a purchase decision based on any specific incentive.

Green Car Loan Rates: What to Expect

Green car loan interest rates are the most direct financial benefit available to EV buyers who are not using a novated lease. Here is what the market currently looks like.

Green Loan Rates vs Standard Car Loan Rates

Green car loans currently offer rates starting from approximately 5.49% per annum for eligible EVs with strong credit profiles, compared to standard secured car loan rates starting from approximately 5.99% per annum. The discount ranges from 0.50% to 1.50% per annum depending on the lender. On a $60,000 EV loan over 5 years, a 1% rate reduction saves approximately $1,700 in interest over the life of the loan.

Which Vehicles Qualify for Green Loan Rates?

Each lender sets their own eligibility criteria for green car loan rates. Most lenders require the vehicle to be a battery electric vehicle or plug-in hybrid. Some lenders extend the discount to mild hybrids or vehicles meeting a specific fuel efficiency threshold. We identify which lenders offer the best green rates for your specific vehicle at the time of your enquiry.

How We Find Your Best Rate

As a broker comparing 50+ lenders, we compare standard car loan rates, green car loan rates and EV-specific products simultaneously. We then present you with the most competitive option for your vehicle, credit profile and loan amount. One application, multiple lenders compared, best rate presented.

EV Finance for Business: Key Considerations

Businesses purchasing electric vehicles face different considerations to personal buyers. Here is what matters most for business EV finance.

Chattel Mortgage for Business EVs

A chattel mortgage delivers immediate ownership, a full GST claim on the next BAS, interest deductions on repayments and depreciation over the vehicle's ATO effective life. For a business buying a $70,000 EV, the GST claim alone represents $6,363 in immediate cash flow benefit. Depreciation can be claimed over the vehicle's effective life, and interest on repayments is fully deductible.

Finance Lease for Business EV Fleets

Finance leases are increasingly popular for businesses electrifying their vehicle fleets. All lease payments are fully deductible, the vehicle does not depreciate on your balance sheet, and at the end of the term you can upgrade to newer EV technology without the complexity of selling old vehicles. This suits businesses running multiple EVs with regular upgrade cycles.

Novated Lease for Employees

If you are a business owner looking to provide EVs to employees as part of a salary packaging arrangement, novated leases with the FBT exemption remain one of the most cost-effective employee benefits you can offer. The employer has no FBT liability on eligible BEVs, and the employee benefits from significantly reduced after-tax vehicle costs. We work through novated lease structures for employers and employees.

Including Charging Infrastructure

Many lenders on our panel allow the cost of a home EV charger or workplace charging installation to be included in the finance amount, subject to their loan-to-value criteria. This can simplify the purchase by rolling charging infrastructure into the same loan as the vehicle. Note that home charging stations are treated differently under FBT rules and are not a car expense for FBT purposes, so separate advice applies for employer-provided chargers.

EV Loan Details

Loan Amount

We arrange EV finance from $10,000 up to $200,000 and above for premium electric vehicles. Most personal EV loans fall between $30,000 and $100,000 reflecting the current price range of mainstream electric vehicles in Australia.

Loan Term

EV loans are available over 1 to 7 years. Given how quickly EV technology is evolving, many buyers prefer shorter terms of 3 to 5 years so they can upgrade to improved battery technology and range without being locked into a long loan on an older model.

Interest Rates

Green car loan rates for eligible EVs currently start from approximately 5.49% per annum. Standard secured EV loan rates start from approximately 5.99% per annum. Rates vary based on your credit profile, the lender and the vehicle. We compare across 50+ lenders to find your most competitive option.

Deposit

No deposit is required for most EV loan applications with a solid credit profile. For high-value EVs above $100,000, some lenders require a deposit of 10% to 20%. A deposit can also improve your rate and approval terms for more complex applications.

Repayment Frequency

Weekly, fortnightly or monthly repayments are available. Fortnightly repayments result in 26 payments per year rather than 12, which reduces total interest paid over the loan term.

Balloon Payment

Balloon payments are available on most EV loans and can significantly reduce regular repayments. They are particularly common in business finance lease structures. For personal EV loans, be mindful that EV residual values vary by brand and model, and a balloon set too high relative to the vehicle's actual depreciation may leave you in a negative equity position at the end of the term.

Frequently Asked Questions About EV Loans in Australia

What is a green car loan and how is it different to a standard car loan?

A green car loan is a secured car loan that offers a discounted interest rate specifically for electric, plug-in hybrid and eligible low-emission vehicles. The discount is typically 0.50% to 1.50% per annum lower than the lender's standard car loan rate. The loan works the same way as a standard secured car loan but costs less in interest because lenders want to incentivise EV adoption. Not all lenders offer green car loans, which is why comparing across 50+ lenders through a broker gives you the best chance of accessing the lowest rate available.

Can I get a lower interest rate on an EV compared to a petrol car?

Yes, in most cases. Many lenders on our panel offer green car loan rates for electric and eligible hybrid vehicles that are 0.50% to 1.50% lower than their standard car loan rates. Green loan rates currently start from approximately 5.49% per annum for eligible EVs with strong credit profiles. The actual rate you receive depends on your credit profile, the lender and the specific vehicle. We compare all options across our lender panel to find your best rate.

Is the FBT exemption still available for electric vehicles in 2026?

Yes. The FBT exemption for battery electric vehicles remains in place as of March 2026 and is confirmed until at least mid-2027 subject to a government review. To qualify, the vehicle must be a battery electric vehicle first held and used on or after 1 July 2022, priced below the fuel-efficient LCT threshold of $91,387 for 2026-27, and provided through a salary packaging or novated lease arrangement. The exemption no longer applies to plug-in hybrid vehicles from 1 April 2025.

Are PHEVs still eligible for the FBT exemption?

No. From 1 April 2025, plug-in hybrid electric vehicles lost their FBT exemption. Only existing PHEV arrangements entered before 1 April 2025 where the vehicle was already in use can continue under the exemption. New PHEV novated leases from 1 April 2025 onwards do not qualify. PHEVs can still be financed through standard car loans and chattel mortgages, but the significant tax advantage of a novated lease no longer applies to them.

What is a novated lease and is it the best option for buying an EV?

A novated lease is a three-way arrangement between you, your employer and a financier where your employer makes lease payments from your pre-tax salary. For eligible battery electric vehicles, the combination of income tax savings from salary sacrificing and the FBT exemption makes a novated lease one of the most financially powerful ways to own an EV in Australia. On a $60,000 EV it can save $10,000 to $18,000 per year compared to salary sacrificing a petrol vehicle. Whether it is the best option for you depends on your employer's willingness to participate, your salary level and your personal financial situation. We compare novated lease options alongside standard car loan and chattel mortgage options so you can make an informed decision.

Can I include the cost of a home EV charger in my car loan?

Yes. Many lenders on our panel allow the cost of a home EV charger and installation to be included in your car loan amount, subject to their lending criteria and loan-to-value limits. This can simplify your purchase by rolling everything into a single loan and single repayment. Note that for employer-provided setups, home chargers are treated as a separate fringe benefit under FBT rules and are not part of the car FBT exemption.

Can I finance a used electric vehicle?

Yes. Used EV finance is available from most lenders on our panel. The same vehicle age limits apply as with standard used car loans, with most lenders accepting vehicles up to 10 to 15 years old at the end of the loan term. Note that for the FBT exemption to apply to a used EV under a novated lease, the vehicle must have been first held and used on or after 1 July 2022 and must never have been subject to Luxury Car Tax. If you are buying a used EV for personal use through a standard secured loan, these FBT rules do not apply.

What EV incentives are currently available in Australia?

The federal FBT exemption for eligible battery electric vehicles remains the most significant incentive, available until at least mid-2027. At the federal level, EVs also benefit from a higher LCT threshold of $91,387 and zero import duty on eligible models. At the state level, most cash rebates and registration exemption programs have now closed. The Northern Territory currently offers free registration and stamp duty concessions until 30 June 2027. The ACT offers a low-interest loan at 3% per annum. All other state rebate programs have closed as of early 2026. Check directly with your state transport authority for the most current status.

Is a Tesla Model 3 or Model Y eligible for the FBT exemption?

The Tesla Model 3 RWD and Model Y RWD are currently priced below the $91,387 LCT threshold and are eligible for the FBT exemption under a novated lease, provided they are first held and used on or after 1 July 2022. Higher-spec Tesla variants such as the Model 3 Long Range and Model Y Long Range may also qualify depending on current pricing. Tesla Model S and Model X are priced above the LCT threshold and do not qualify for the FBT exemption. Confirm current pricing and eligibility with us at the time of your enquiry as vehicle prices change.

Can I get EV finance if I am self-employed?

Yes. Self-employed borrowers and sole traders are eligible for EV finance through secured green car loans and chattel mortgages. If you cannot provide traditional payslips, low-doc lenders assess your income using bank statements, BAS returns or an accountant's letter. Note that the FBT exemption and novated lease structure requires an employer-employee relationship, so self-employed sole traders operating without employees do not qualify for the novated lease pathway. A chattel mortgage is typically the most tax-effective structure for self-employed EV buyers.

How does EV depreciation affect my loan?

Electric vehicle depreciation varies significantly by brand, model and battery technology. Some EVs hold their value very well while others, particularly cheaper models from newer brands, depreciate faster than equivalent petrol vehicles. Depreciation matters most when a balloon or residual payment is involved. If the vehicle depreciates faster than expected, you may owe more on the loan than the car is worth at the end of the term. We factor expected depreciation into our loan structure recommendations, particularly when balloon payments are involved. For business buyers, ATO depreciation claims on EVs follow the standard effective life framework.

Can I finance an EV for my business fleet?

Yes. Business EV fleet finance is one of the fastest-growing areas of commercial lending in Australia. We arrange chattel mortgages for businesses wanting to own their EV fleet outright, finance leases for businesses wanting regular upgrade cycles, and novated lease arrangements for employee EVs eligible for the FBT exemption. We also assist with bundling charging infrastructure into fleet finance arrangements. Contact us to discuss your fleet requirements and we will compare the most appropriate structures across our lender panel.

What happens to my EV loan if the FBT exemption ends?

If you have already entered into a novated lease under the FBT exemption, changes to the policy going forward do not retrospectively affect existing arrangements in most cases. The government review underway is focused on future eligibility, not on clawing back benefits already received. If you are considering an EV novated lease, acting while the current exemption terms apply is advisable rather than waiting to see the outcome of the mid-2027 review. Speak to us and we can help you understand the timing risk.

Can I refinance my existing EV loan?

Yes. If your current EV loan rate is higher than what is now available in the market, or if your credit profile has improved since you originally borrowed, refinancing through a lender on our panel may reduce your rate and lower your repayments. We assess your current loan, the vehicle's current market value and your credit position to confirm whether refinancing delivers a genuine saving after any early payout costs. Given how quickly EV loan rates and green car loan products have evolved, many borrowers who financed their EV two or more years ago may now be eligible for significantly better terms.

What documents do I need to apply for an EV loan?

For a standard personal EV loan: a valid Australian driver's licence, proof of income such as recent payslips or three months of bank statements, a dealer quote or purchase agreement showing the vehicle details and price, and your Medicare card or passport as secondary identification. For a business chattel mortgage: ABN, business bank statements for three to six months, and a quote or invoice for the vehicle. Self-employed borrowers may substitute BAS returns and an accountant's letter for payslips. We tell you exactly what is required once we identify the right lender for your situation.

Is it better to lease or buy an electric vehicle in Australia?

This depends entirely on your employment situation, tax position and how long you plan to keep the vehicle. For employees eligible for the FBT exemption, a novated lease almost always delivers the best financial outcome on a comparable EV because of the pre-tax salary sacrifice and zero FBT liability. For self-employed business owners, a chattel mortgage delivers the best tax outcomes through GST claims, interest deductions and depreciation. For personal buyers who are not eligible for salary packaging, a green car loan with a competitive interest rate is typically the most straightforward and cost-effective path. We work through all three options with you before you commit.

How long does EV loan approval take?

Most EV loan applications submitted with complete documentation receive a conditional approval within 24 hours. Business chattel mortgage applications may take 24 to 48 hours depending on the loan amount and required documentation. Novated lease arrangements involve a three-way process between the employee, employer and financier, which typically takes slightly longer to coordinate. We manage the entire process on your behalf and keep you updated at every stage.

Why Choose Australian Finance & Loans for Your EV Loan

• Independent broker: we compare 50+ lenders including green car loan specialists

• Access to the most competitive EV and green car loan rates in the market

• Deep understanding of the FBT exemption, novated lease structures and EV tax benefits

• Specialists in both personal EV loans and business EV fleet finance

• Up-to-date knowledge of state and federal EV incentives as they change

• Low-doc options for self-employed EV buyers

• Fast approvals: most applications receive conditional approval within 24 hours

• Melbourne-based team with national reach across all states and territories

• Transparent advice with all fees and conditions disclosed before you commit

• Dedicated support from initial enquiry through to settlement