The EV FBT exemption has been one of the critical drivers of record battery electric vehicle (BEV) sales in 2025, playing a central role in boosting uptake and helping Australia towards its emissions targets, according to the National Automotive Leasing and Salary Packaging Association (NALSPA).
New figures from the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council (EVC) reveal more than 103,000 BEVs were purchased last year - an annual record for Australia.
NALSPA chief executive Rohan Martin said despite the record year for BEV sales, there remain a number of barriers to uptake.
“The EV Discount has been one of the critical drivers of battery electric vehicle uptake in 2025,” NALSPA chief executive Rohan Martin said.
“2025 was a record year for all new car sales with a range of new models, including EVs, giving Australians greater choice.
“For the first year ever, BEV sales cracked the 100,000 mark in 2025, up around 13 per cent on 2024, reflecting the impact of the incentive on consumer adoption. Without the tax incentive on electric cars, tens of thousands fewer EVs would be on Australian roads today.
“Despite a record year for EV sales, Australia still has a long way to go. Barriers to uptake in Australia persist and we still trail countries that have long benefited from necessary driver incentives. More EVs in Australia is crucial as transport is set to become the largest source of emissions in just a few years time.
“The Climate Change Authority advises that half of all new cars sold between now and 2035 must be electric to hit even the lower end of Australia’s emissions target. This requires an enormous scale-up that cannot happen without continued policy support. Australia simply cannot sell the number of EVs it needs to and reduce vehicle emissions without the sustained support of the FBT exemption and other complimentary measures.”
Mr Martin said the FBT exemption has been demonstrably effective in delivering a wide range of benefits.
“More new BEVs on our roads builds a pipeline of used EVs, expanding access to cleaner, cheaper-to-run transport for even more Australians,” Mr Martin said.
“The FBT exemption is proving most popular with working Australians living in the outer suburbs, which makes sense, as they stand to gain the most from electric driving including reducing their cost of living.
“Through the support of the EV FBT exemption, Australians are benefiting from reduced emissions, more affordable cars, and safer roads with more new vehicles on them - benefits that support the national interest.”
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