The Albanese Government’s Electric Car Discount has added more than 100,000 electric vehicles (EVs) to Australian roads while cutting emissions and easing cost-of-living pressures, according to the nation’s peak body for novated leasing.
The National Automotive Leasing and Salary Packaging Association (NALSPA) has told Treasury’s review of the Electric Car Discount that the fringe benefits tax (FBT) exemption is delivering results across multiple areas.
The policy has lifted battery electric vehicle (BEV) market share from 1.4% in 2021 to 8.3% in 2025, while cutting 160,000 to 200,000 tonnes of CO2-e emissions annually based on EVs already sold with the policy’s support.
NALSPA chief executive Rohan Martin said the Electric Car Discount is a resounding success on multiple fronts, delivering benefits in the national interest.
“The Electric Car Discount was introduced to drive up EV uptake, drive down emissions and make EVs more affordable, and it has been a remarkable success for the government on all fronts,” Martin said.
The policy has also improved BEV affordability by helping expand model availability, cutting prices by 8.6%, and increasing second-hand sales six-fold since the policy began.
Martin said the discount is providing cost-of-living relief by supporting everyday Australians to afford the upfront cost of EVs and benefit from lower ongoing running costs, particularly for outer suburban working households.
“The policy aimed to add around 5000 EVs to Australia’s roads in its initial years, but its success to date has meant that it’s delivered more than 100,000 EVs and counting,” he said.
“The Electric Car Discount is most popular with outer-suburban families and it is estimated it is responsible for at least half of all EVs sold in Australia today.”
Market share still lagging
Despite the policy’s success, Martin noted Australia’s BEV market share remains around 40% below comparable economies, indicating significant work remains.
“With significant cost-of-living pressures persisting, the Electric Car Discount is more important than ever,” he said.
“Many Australians tell our members that they simply wouldn’t have made the switch without the EV discount, as barriers like price, charging, and range anxiety persist.”
Martin drew parallels with Australia’s rooftop solar and home battery adoption, saying support incentives provide the push people need to become early adopters of sustainable choices that eventually become the norm.
He said Australia lags significantly behind other countries on EV market share, with transport set to become the nation’s largest emissions source by 2030.
“The Climate Change Authority says we need 20 times more EVs on the road within the decade to meet Australia’s climate targets,” Martin said.
“Australia cannot overcome these challenges without the Electric Car Discount, which is doing the heavy lifting on our country’s EV transition.”
The full NALSPA submission is available at https://nalspa.org.au/wp-content/uploads/2026/02/Submission-Final.pdf
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