PHEV / Plug-in Hybrid Car Novated Lease
PHEV novated leasing works best when you understand the numbers. At Leaselab, we’ll show you exactly how salary sacrifice and GST exemptions offset the FBT change, then structure your lease to maximise every saving available.
All your car and running costs are included
Customer Service
Rego & Insurance
Tyres & Alignment
Servicing & Maintenance
Fuel or Electricity
Lease Payments
Choose your own running costs
You can customise your lease to your liking. Get a Personalised Quote below to choose your options.
The FBT exemption ended for PHEVs in April 2025… but it’s not all bad news
PHEVs now require post-tax contributions to offset FBT, making them less tax-efficient than pure electric vehicles. However, if you want EV range for daily commutes plus petrol backup for road trips, a PHEV novated lease still delivers solid savings, just not the maximum available. We’ll also show you how business use can be used in your novated lease calculations.
What is a plug-in hybrid (PHEV)?
A PHEV combines a petrol engine with an electric motor and a rechargeable battery. You’ll be able to drive 50-100km on electric power alone for your daily drives, then switch to petrol for longer trips… without the stress of finding the closest charger.
This is different to a hybrid car, commonly referring to a parallel or ‘self-charging’ hybrid. The electricity in hybrid cars is created via acceleration while driving, engine idling or ‘regenerative braking’.
Is a novated lease on a PHEV worth it?
Novated leasing often comes out on top. You’ll still save with salary sacrificing your PHEV, except you’ll now need to cover fringe benefits tax. You’ll still benefit from GST exemptions and pre-tax payments on running costs.
Real Example BYD Shark 6: Dual Motor Premium
*Calculation is based on a Victorian driver with an annual gross salary of $150,000 driving 15,000km per year with 80% business use. Lease length is 5 years. Running costs include: electricity, comprehensive insurance, registration, servicing and tyres.
The car loan repayments are calculated based on a loan term of 5 years with a 7.99% interest rate and no loan fees. 3.75% rate used for after-tax interest earned.
Enter your salary into our PHEV novated lease calculator and see how much you'll actually save.
The most popular PHEVs being novated
These five plug-in hybrids are Australia's most popular PHEV novated leases right now. Whether you need towing capability, family space, premium comfort or just reliability, there’s a plug-in hybrid delivering value on a novated lease.
See which matches your needs:
BYD Shark 6
Australia's first PHEV ute. 80km electric range, 2,500kg towing, genuine work capability. Perfect for tradies wanting lower fuel costs on daily commutes while having a tough ute that’s ready to work. Integrate business use into your novated lease and your tax savings increase even more.
Mitsubishi Outlander PHEV
The Outlander pairs seven-seat practicality with 54km electric range for daily commutes, then switches seamlessly to petrol for weekend adventures.
Kia Sorento PHEV
Kia's warranty backs every drive, modern tech keeps everyone connected and hybrid efficiency means lower fuel bills. This seven-seater offers comfort for families who refuse to compromise on quality or space.
Chery Tiggo 7
Modern cabin tech, a roomy layout and useful features give you and your family the extra comfort on the road and confidence that makes every trip easier.
Volvo XC60 Recharge
Premium Swedish engineering with PHEV sophistication. Experience 50km electric range, luxury cabin and Volvo's safety reputation.
Save thousands in tax by driving your dream car.
What is a novated lease?
A novated lease is an innovative way to finance your vehicle through a three-party agreement involving you, your employer, and a car finance provider. It allows you to pay for your car from your pre-tax salary, leading to significant tax savings and a streamlined car ownership experience.
Save thousands in tax
Bundle your car and running costs into one pre-tax salary deduction, saving thousands annually and tens of thousands over the lease's lifetime.
Get a better car for less money
Save up to $6,353 on the GST component of the car's price, making it easier to afford a better car and maximising your budget.
No bill shock
Turn annual car-related expenses into even monthly payments, preventing unexpected costs that can disrupt your budget.
Include running costs
Add fuel, servicing, insurance, and more to your lease package, all paid pre-tax, increasing your savings on everyday costs.
Fixed monthly payments
Enjoy predictable, fixed payments over the lease term, helping you manage your finances with confidence.
Managed by us, for you
We handle all aspects of your lease, from processing expenses to providing transparent account reporting, ensuring hassle-free management.
The Process
How It Works
A novated lease is a way to pay for your car and its running costs using your pre-tax income, which in the eyes of the ATO reduces your total salary and therefore the amount of tax you pay. It sounds simple, but it’s a total game-changer. Here's how it works in three simple steps.
You + Your Vehicle
Found the car you want? Perfect. Now, instead of you paying for your car outright, you enter into a lease agreement for the car for a fixed period between 1 - 5 years.
You + Your Employer
An agreement is set up between you, your employer and us. Then, your deductions for the lease (including running costs too, if that's what you want) are made by your employer from your pre-tax income. And that reduces the income tax you pay each pay cycle. Plus, your deduction amount is fixed, so you know what you’re paying for your car each month.
You + Leaselab
With a direct line of communication through a dedicated relationship manager, we'll help you navigate any challenges right the way through your lease. Whether it's today or five years from now, we promise you’ll always have the same level of help and service all the way through to the end of your lease.
Instant estimate - no obligation
Why did the FBT exemption end for PHEVs in April 2025?
The government reviewed the EV incentive scheme and decided FBT exemption should apply only to zero-emission vehicles (pure EVs and fuel cell vehicles).
PHEVs, which still burn petrol, no longer qualify. This change affects all new PHEV novated leases from 1 April 2025 onward.
Am I locked out of PHEV novated leasing because of the FBT change?
No. PHEVs still qualify for novated leasing and deliver genuine tax savings through salary sacrifice and GST exemptions.
You just need to make post-tax contributions to cover fringe benefits tax, reducing (but not eliminating) your total annual savings compared to an equivalent EV.
Should I lease a PHEV or wait for an EV instead?
Depends on your needs.
- Choose a PHEV if you value flexibility (petrol backup for road trips) and want to avoid charging infrastructure concerns.
- Choose an EV if maximising tax savings is your priority and you're comfortable with the charging infrastructure.
You can always compare our entire range of cars available on a novated lease at Leaselba.
Can I include the cost of a home wallbox charger in my PHEV novated lease?
No. Home charging equipment is considered a home improvement, not a vehicle running cost. However, you’ll be able to include ongoing electricity costs for charging your PHEV in your lease.
About Leaselab
We work hard to make the complex world of novated leasing easy and accessible for everyone. This is part of our long-standing goal to reinvigorate the novated leasing industry with a focus on service and quality. We are here to do the right thing for our customers.We live and breathe novated car leasing and are ready to provide you with personalised guidance so that you're informed every step of the way.As we always say: It’s a new lease on novated leasing.
Why choose Leaselab for your novated lease?
We work hard to make the complex world of novated leasing easy and accessible for everyone. This is part of our long-standing goal to reinvigorate the novated leasing industry with a focus on service and quality. We are here to do the right thing for our customers. We live and breathe novated car leasing and are ready to provide you with personalised guidance so that you're informed every step of the way.
years of combined experience in novated leasing
Customer satisfaction rating
of reviews are 5 stars
How we stack up against the competition
We believe everyday Aussies deserve a smarter way to buy a new ute. That's what grounds our commitment to customer success. And it's why we always act in the best interests of our clients by providing trustworthy education and guidance, even (and especially when) it’s difficult.
Total Transparency & Easy Access
See all your lease details at any time, with a simple, intuitive online portal.
Multiple Lender Options, Competitive Rates
Choose from a range of lenders to get the best deal for you.
Super Short Support Wait Times
Speak to a real person in under a minute, on average.
Rapid Reimbursements
Get your money back fast—usually within 2–3 business days.
Dedicated Account Manager
Enjoy personal service from your own account manager, for the life of your lease.
Exclusive Employee Benefits
Access extra perks and benefits beyond your lease, at no extra cost.
Our Happy Customers
Helping Aussies get into their dream car
We’ve helped thousands save tens of thousands, and we’re on a mission to make novated leasing mainstream, simple and accessible to everyone.
Education that empowers you
We’re here to give you the knowledge and confidence to make the smartest decision for your situation.
Service that never stops
From your first quote to your final lease payment and beyond, our team is by your side throughout the entire process.
“Great service. Always very prompt in answering questions. Excellent communication, kept me up to date through the whole process. Really couldn't be happier with the service I received.”
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Wayne R
