Rising petrol prices driving Australians towards novated leasing
With petrol prices continuing to fluctuate across Australia, many employees are looking for smarter ways to manage the cost of getting from A to B.
At the same time, the Federal Government’s electric vehicle (EV) Fringe Benefits Tax (FBT) exemption is making eligible EVs more affordable through salary packaging and novated leasing.
Together, these factors are accelerating interest in novated leasing as a flexible and cost-effective vehicle solution.
Joelyn YapStrategic Content Marketing Manager
17 Jun 20262 min read
Why rising fuel prices are changing vehicle choices
Rising fuel costs are prompting many Australians to reassess:
the type of vehicle they drive
ongoing fuel and maintenance expenses
more affordable ways to finance a car
This shift is driving increased demand for fuel-efficient hybrid and electric vehicles through novated leasing.
What is a novated lease?
A novated lease is a salary packaging solution that allows employees to finance a vehicle using pre-tax salary, potentially reducing taxable income.
It’s a three-way agreement between the employee, employer and finance provider, with vehicle costs bundled into one regular payment.
A novated lease can include:
lease repayments
fuel or charging costs
servicing and maintenance
registration and insurance
Bundling vehicle expenses into one payment can help simplify budgeting and provide greater cost visibility, particularly as petrol prices remain unpredictable.
Growing interest in EV novated leasing
The extension of the EV FBT exemption is making electric vehicles increasingly attractive for Australian employees.
Eligible EVs may offer additional savings through:
pre-tax salary packaging benefits
reduced fuel or charging costs
lower servicing and maintenance expenses
Combined with rising petrol prices, novated leasing is helping make the transition to electric vehicles more accessible and affordable.
Supporting simpler vehicle ownership
At Custom Fleet, we help simplify the novated leasing experience from vehicle selection through to lease completion.
Our team supports employees with:
vehicle sourcing and competitive pricing
flexible lease options
fuel card access and supplier networks
maintenance and servicing support
online tools to help track lease budgets and expenses
As cost-of-living pressures continue, novated leasing gives employees more flexibility, easier budgeting and access to newer vehicles that better suit their needs.
Looking ahead
As fuel prices remain unpredictable and interest in electric vehicles continues to grow, novated leasing is expected to remain a popular vehicle financing option.
The combination of potential tax savings, bundled vehicle costs and EV incentives is reshaping how Australians think about car ownership.
To learn more about how novated leasing works, explore Custom Fleet’s novated leasing solutions or speak with our team today.