⚖️ Disclosure: EVRunningCost may earn referral commissions via affiliate links. Calculations are estimates based on your inputs — actual running costs vary by driving style, vehicle model, and local conditions.
Guide
How EVs Save You Money
The running cost advantage of EVs over petrol cars — explained simply.
⚡ Fuel: 3–4x cheaper per km
Petrol costs around 18–22¢/km at current prices. Charging an EV at home costs 4–7¢/km. With solar charging, it can drop to under 2¢/km. Over 15,000 km/year, that's $1,500–$2,500 in fuel savings alone.
🔧 Servicing: 40–60% cheaper
EVs have far fewer moving parts than petrol engines — no oil changes, no timing belt, no spark plugs, no exhaust system. Typical EV servicing costs $150–$300/year vs $400–$800 for a petrol car. Brake pads also last longer due to regenerative braking.
☀️ Solar charging: near-zero fuel cost
If you have rooftop solar, set your EV to charge during the day when your panels generate excess power. Instead of exporting that solar at 3–10¢/kWh, you're effectively fuelling your car for free. Most EV owners with solar spend under $200/year on car fuel.
📊 The 5-year picture
The EV purchase price is still higher than equivalent petrol cars for many models. However, over 5 years the running cost savings typically close the gap significantly:
$2,000–$2,500 saved on fuel per year = $10,000–$12,500 over 5 years
$300–$500 saved on servicing per year = $1,500–$2,500 over 5 years
Total 5-year advantage: $11,500–$15,000 vs petrol
Help
Frequently Asked Questions
Yes, in almost all cases in Australia. Electricity costs 3–7¢/km vs 18–22¢/km for petrol. Servicing is 40–60% cheaper. Most EV owners save $2,000–$3,000/year in running costs.
The most efficient EVs (by running cost) include the BYD Atto 3, MG4, and Tesla Model 3. All get under 18 kWh/100km, which at 30¢/kWh = 5.4¢/km. Compare that to 18–22¢/km for a typical petrol car.
Huge difference. Charging during the day from excess solar can reduce your effective electricity cost to near zero, dropping EV running costs to under $200/year for most drivers.
Typically $150–$300/year for a standard EV service (tyre rotation, brake check, fluid top-up, software update). No oil changes, filters or spark plugs means significantly lower ongoing costs than petrol.
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ATO Compliant · 2025–26
🏢 FBT & Novated Lease Calculator
Compare buying an EV personally, through a novated lease, or as a company vehicle — and see exactly how much tax you save. EVs under $89,332 are 100% FBT exempt since 1 July 2022.
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Zero FBT on EVs
Since 1 July 2022, EVs under $89,332 are completely exempt from Fringe Benefits Tax. A petrol car would attract 47% FBT — your EV pays none.
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Pay Everything Pre-Tax
With a novated lease, your finance repayments AND all running costs — charging, rego, insurance, tyres, servicing — are salary sacrificed before tax is taken.
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Save Up To 47%
Depending on your income, you could save 21% to 47% on the total cost of owning and running your EV compared to buying it personally with after-tax money.
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Company Purchase Advantage
If your company buys the EV outright, it gets an instant asset write-off deduction, pays zero FBT, and all running costs are tax deductible. Employee pays nothing.
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Charging Included Pre-Tax
Home charging costs are included in the novated lease package — meaning your electricity bill for the car is also paid before tax. With solar, this cost is near zero.
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Flexible Lease Terms
Novated leases typically run 2 to 5 years. At the end, you can buy the car at residual value, re-lease a new EV, or hand it back — full flexibility.
⚡ Bottom line: A $65,000 EV on a 3-year novated lease for someone earning $120,000 can save over $25,000 compared to buying personally. Enter your numbers below to see your exact saving.
Must be under $89,332 for FBT exemption to apply
Used to calculate your marginal tax rate
Novated leases typically run 2–5 years
Typical novated lease rate: 6–9%
Home charging — typically $500–$1,500/year
Varies by state — typically $600–$1,100/year
Comprehensive EV insurance — typically $1,200–$2,500
EVs: typically $400–$800/year — no oil changes
For the company purchase scenario
Estimated resale value — typically 35–50% of purchase price
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total saving — novated lease vs personal purchase over the full term 34.5% tax rate
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Personal Purchase
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per year, after-tax dollars
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total cost over term
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Novated Lease (FBT Exempt)
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effective annual cost after tax saving
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total effective cost over term
Saving: —
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Company Purchase
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net cost to employer after tax deduction
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net annual running cost to company
Employee benefit: —
📊 Novated Lease — Annual Breakdown
Annual finance payment (gross)—
Annual running costs (gross)—
Total annual package (salary sacrificed pre-tax)—
Your marginal tax rate (incl. Medicare)—
Annual tax saving—
Effective annual out-of-pocket cost—
📊 Company Purchase — Net Cost Breakdown
Vehicle purchase price—
Company tax deduction (instant asset write-off)—
Net cost to company after tax—
Annual running costs (tax deductible)—
Net annual running cost after tax—
FBT on employee use$0 — EV exempt ✅
Talk to a novated lease specialist
These calculations are estimates. Before committing, speak with your employer's salary packaging provider or an accountant familiar with the ATO's EV FBT exemption rules.
⚖️ Disclaimer: This calculator provides estimates only and does not constitute financial or tax advice. Always confirm with a qualified accountant or salary packaging provider. FBT threshold and tax rates based on ATO 2025–26 figures.