Quick answer
Electric vehicle finance funds battery electric cars and vans for business use, often together with chargers at the depot or office. Businesses switch for lower running costs, and eligible battery electric cars provided to employees can be exempt from fringe benefits tax if they're below the luxury car tax threshold for fuel-efficient vehicles and first used on or after 1 July 2022. Plug-in hybrids lost that status from 1 April 2025. Payback depends on kilometres, charging access and the price gap with a petrol or diesel equivalent.
Key points
- Lower running costs are the main business case: fuel and servicing.
- Eligible battery electric cars for employees can be exempt from FBT.
- Plug-in hybrids are no longer treated as zero or low emissions vehicles for FBT from 1 April 2025.
- Chargers and electrical work can be funded with the vehicle.
- Covers
- Battery electric cars, vans and depot chargers
- FBT exemption
- Eligible BEVs below the fuel-efficient LCT threshold
- PHEV change
- Not zero or low emissions for FBT from 1 April 2025
- Payback driver
- Kilometres and charging cost
More Australian businesses are putting electric cars and vans into service, mostly for one reason: running costs. Charging at the depot overnight can cost far less per kilometre than diesel, and an electric drivetrain has fewer parts to service. Electric vehicle finance covers the vehicle and, usually, the charging set-up that makes it practical.
Why are businesses switching to electric?
- Running costs. Charging, especially off your own solar, can be much cheaper than fuel.
- Servicing. No oil changes, fewer moving parts, regenerative braking that saves pads.
- Tax for employee cars. Eligible battery electric cars provided to employees can be exempt from FBT.
- Customer expectations. Some clients and tenders now ask about fleet emissions.
How does the FBT exemption work?
The ATO sets out conditions that must all be met for the electric cars exemption:
- The car is a battery electric or hydrogen fuel cell vehicle, designed to carry less than one tonne and fewer than nine passengers.
- It was first held and used on or after 1 July 2022.
- It’s used by a current employee or their associates.
- Luxury car tax was never payable on it, and its value is below the LCT threshold for fuel-efficient vehicles.
From 1 April 2025, plug-in hybrids are no longer treated as zero or low emissions vehicles for FBT, so they generally don’t qualify for new arrangements. Vans and utes designed to carry a tonne or more don’t fall under the car exemption either, but may have their own FBT treatment. Your accountant should check the specific vehicle.
What does an EV purchase usually include?
| Item | Notes |
|---|---|
| The vehicle | Car, van or light commercial |
| Depot or workplace charger | Size it for overnight top-ups |
| Electrical work | Switchboard upgrades can add materially to cost |
| Solar or battery | Optional, but cuts charging cost further; see solar and energy upgrades |
| Fleet software | Useful for several vehicles |
Bundling the vehicle and charger into one unsecured or property-backed loan keeps it simple.
How do you work out EV payback?
- Kilometres per year for the vehicle.
- Fuel cost now for the petrol or diesel equivalent.
- Charging cost at your tariff, or lower if you have solar.
- Servicing difference.
- Price difference between the EV and the equivalent combustion vehicle, plus charger costs.
Divide the extra upfront cost by the monthly saving to see how many months it takes to break even. The purchase payback calculator does this sum if you enter the monthly saving as the benefit.
Illustrative example. A Canberra home-care provider runs eight cars for carers who drive about 25,000 kilometres a year each on short local trips. Replacing two ageing petrol cars with small battery electric cars below the fuel-efficient LCT threshold, plus two workplace chargers, costs about $104,000. Lower running costs and the FBT exemption on the carers’ limited private use make the switch cheaper over five years than buying petrol cars, according to the provider’s accountant.
What should you check on a used EV?
- Battery health report. Battery condition drives value and range.
- Charging connector and speed compatibility with your charger.
- Remaining battery warranty.
- PPSR search for finance owing or a written-off record.
Our guide on new or used business vehicles covers the broader decision.
How should you plan depot charging?
Charging is what makes or breaks an EV fleet. Before buying vehicles, work out:
- How far each vehicle drives a day, and whether an overnight charge covers it with a comfortable margin.
- How many vehicles charge at once, and whether your switchboard and supply can handle it.
- Whether drivers take vehicles home, and how home charging is reimbursed.
- Your tariff, including any time-of-use pricing that rewards overnight charging.
- Solar on the roof, which can cut charging costs further for vehicles parked during the day.
An electrician experienced in commercial charging can assess your site and quote any switchboard or supply upgrades. Those costs can be significant, so include them in the project budget and the loan from the start.
Thinking about going electric?
If the kilometres and the charging stack up, an EV can be one of the cheapest vehicles you’ll run. Asking us doesn’t involve a credit check; that only happens once you decide to proceed. We don’t pass your details to a stack of lenders. One person looks at the vehicle, the charger and the business, and calls you with options.
Please be accurate about the vehicle, charger costs and who will drive it. That helps us get the structure right first time. Start your EV finance enquiry.
Frequently asked questions
Are electric cars exempt from fringe benefits tax?
Eligible ones can be. The car must be a battery electric or hydrogen fuel cell vehicle, first held and used on or after 1 July 2022, used by a current employee or their associates, and valued below the luxury car tax threshold for fuel-efficient vehicles. Your accountant can confirm eligibility for a specific car.
What about plug-in hybrids?
From 1 April 2025, plug-in hybrids are no longer considered zero or low emissions vehicles under FBT law, so new arrangements generally don't get the exemption. The ATO has transitional rules for some existing arrangements.
Can I include a charger in the loan?
Yes. Depot or workplace chargers, switchboard upgrades and electrical work can be funded along with the vehicle, usually through an unsecured or property-backed loan.
Do EVs make sense for a delivery van?
For predictable urban routes that fit comfortably within range with a full load, and with overnight charging at the depot, they can. Check real-world range in winter and with your heaviest regular load before committing.
Are EVs harder to finance?
Not in general. Newer EVs from dealers are financed much like other cars. Some financiers are more cautious about older used EVs because battery health affects value, so ask for a battery health report on any used EV.