EV Insights for Busy Australian SMEs
AP B2B Consultancy: EV Incentives & Deal Related Information for Businesses
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(information for general use, not financial or legal advice)
EV Adoption: Insights into Financial Benefits to help your Business
For busy Australian SMEs, it can be challenging to stay informed on what’s happening in the electric vehicle (EV) sector with infrastructure, financial deals and incentives available, and the products and services that will support you. Increasing EV adoption presents an opportunity for your business, not only in boosting an eco-conscious brand image but also in catering to evolving customer trends and the future needs of EV drivers.
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Upfront cost support
The upfront costs of integrating EVs into your operations might be considered a barrier, although there are federal and state incentives and deals on offer to support SMEs. One of the key benefits encouraging SMEs to consider EV adoption sooner is the Fringe Benefits Tax (FBT) exemption on eligible EVs provided to employees through a novated lease, which offers a financial saving for businesses. FBT exemptions on eligible EVs now primarily applies to battery electric and hydrogen fuel cell vehicles, noting that the available FBT exemption for Plug-in Hybrid Electric Vehicles (PHEVs) has now changed (We cover this in more detail in our ‘Whats The deal with Novated leases and FBT on EVs’ article on this site).
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Wider Infrastructure support
While the May 2025 Federal Budget for FY25-26 didn’t introduce any major new EV-related purchase incentives that directly financially benefit SMEs, the Australian Government is supporting the wider clean energy transition that EVs are part of with the allocation of $2 billion of capital for the Clean Energy Finance Corporation (CEFC). This additional capital was approved by Parliament and welcomed by the CEFC in February 2025. While not exclusively for EVs, it forms part of the important role the CEFC plays in financing renewable energy, energy efficiency, and low emissions technologies, which can indirectly support EV charging infrastructure and green fleet initiatives for SMEs through various loan and investment programs
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More direct Infrastructure support
More directly, the Federal Government is supporting SMEs with funding available through CEFC partnerships. An example is the additional $50 million in funding through a CEFC partnership with Metro Finance, as reported by the Australasian Fleet Management Association. This initiative helps to lower the costs of adopting energy-efficient equipment (including solar batteries) with discounted loan rates on eligible assets, supporting EV transition for SMEs, farmers, and freight companies.
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Key Insight takeaways:
The short term investment needed to adapt and grow a business can be a concern for SME’s, but by looking past the initial financial deals or the price tag difference between an EV versus a petrol vehicle, there are other longer-term opportunities to EV adoption that are worth consideration, such as:
Evolving customer behaviours, habits and needs.
The benefits to the environment and your public market image.
Government Incentives and investments in Infrastructure aimed to support SMEs.
The new products, services and advanced Technology EV sector growth will encourage.
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AP B2B Consultancy is here to help your business with information and insights to help you navigate a fast changing EV landscape.
Our Latest Insights
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Understanding EV Fleet Opportunities: What Providers Offer
For Australian SMEs looking at electric vehicle adoption, understanding what fleet management companies generally offer is important. Beyond just the vehicle purchase, many providers offer packaged "deals" designed to simplify your EV transition and help you get the most out of the financial benefits available.
These often include strategies on:
Novated Leases: Leveraging FBT exemptions to reduce employee and business tax liabilities.
Fleet Discounts: Accessing negotiated pricing on EVs through bulk buying power.
Integrated Solutions: Bundling financing, maintenance, charging infrastructure guidance, and ongoing fleet management support.
Incentive navigation: Expert advice on federal, state, and territory incentives that help drive down total cost of ownership.
Insight takeaway: By exploring the services and expertise of Fleet management specialists, SMEs can identify practical pathways to ensure their deals are cost effective and save money over the long-term.
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EV Charger Installations: ROI Deals Beyond the Plug in Point
For SMEs transitioning to EVs and prepping for the future needs of EV customers while the initial costs for installing EV chargers will vary depending on charger type, power output, site-specific Infrastructure and Electrical considerations, the return on investment (ROI) from an on-site charger goes beyond just powering vehicles, it’s an investment that can yield long term returns:
An EV Charger can Assist Operational Efficiency:
On-site charging your Fleet overnight or during downtime periods, helps maximise vehicle readiness and reduces reliance on public charging networks. This can lead to saved money in staff time and increase productivity and convenience.
Talent Attraction & Retention:
Providing convenient workplace perks like a charging station can be valued by employees. It acts as a benefit that can both attract new talent and boost existing staff satisfaction
Boost Customer Service & Brand Value:
For businesses reliant on face to face customer service, offering EV charging means waiting customers have a dedicated parking spot and a wait time that could encourage more foot traffic to your business.
For more Information on EV Charger Installations we take a more detailed look into Installations, charger types, customer trends and adding value to customer service and staff satisfaction in our ‘charger installations’ article on our pricing and long term related EV insights website newevprice.com.au
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Driving EVs in Water & Rain: Safety for Your Fleet
A concern for SMEs around their EV fleet could be how safe they are in wet conditions. Modern EVs are engineered with sealed components to withstand rain, puddles and splashes and are equipped with advanced safety systems to prevent short circuits or fires by automatically shutting down or isolating the high-voltage battery if water reaches important components to help safeguard the vehicle and its occupants.
However, while an EV’s low-mounted battery pack provides improved stability and high-voltage components with high "Ingress Protection" (IP) ratings (designed for protection to seal against water), it's always important to follow safe driving practices and avoid driving any vehicle, EV or not, through floodwaters.
What’s the Deal with Novated EV Leases and FBT Exemption?
If you are exploring ways to boost EV adoption in your business, Novated Leases are an Australian Government incentive designed to make it easier for employers to provide eligible Electric Vehicles (EVs) to employees by offering significant tax benefits, including an exemption from Fringe Benefits Tax (FBT) without assuming the financial risks on the vehicle. For the employee, the fixed regular payments set up over a specific timeframe can help with budgeting.
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Quick Guide to points of interest below:
1 What is a Novated lease
2 What do Novated EV Leases Include
3 How do Novated leases benefit SMEs
4 What happens when the lease ends
5 Key Insights summary & takeaways
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1 What is a Novated lease?
This three-way arrangement between the employee, employer, and lease provider allows employees on salary to lease an eligible vehicle (typically over 1-5 years). Under this arrangement, the employer makes fixed regular lease payments from the employee's pre-tax salary, effectively reducing the employee's taxable income. While a novated lease can apply to various vehicles, the significant FBT exemption is a key benefit that currently applies only to eligible Battery Electric Vehicles (BEVs). There are specific conditions for Plug-in Hybrid Electric Vehicles as detailed in section 3 below.
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2 What do Novated EV Leases Include?
Many Novated lease providers offer two main levels of payment plan packages, for either the Vehicle only, or a bundle deal that also includes Rego, insurance, Charging (fuel) and servicing. While considering a Novated lease as an option, being aware of any other fees or changes applicable (such as setup or account keeping fees) and a good understanding of how much the final residual (Balloon payment) will be can be helpful during the decision-making process.
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3 How do Novated leases benefit SMEs?
This lease provides a low risk option for an employer to offer an attractive benefit to employees through a novated lease. There is no major financial risk to the employer, and while they are responsible for the payroll associated admin, they are exempt from paying the FBT on the vehicle. To be eligible, a BEV must have a value of less than the current Luxury car tax (LCT) threshold of $91,387 (the LCT will stay the same until reviewed in 2027) and first registered after July 1, 2022. Plug-in Hybrid Electric Vehicles (PHEVs) are no longer eligible for the FBT exemption, unless a pre-existing commitment was already in place prior to April 1, 2025. More detailed information on the Electric Cars FTB Exemption is available on the Australian Tax Office (ATO) website. If the employee goes to work for another employer during the term of the lease, the agreement may be transferable to the new employer, although the FBT exemption is reassessed under the new arrangement.
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4 What happens when the lease ends?
Once the lease term ends, it is common for the employee to be given the flexibility of choosing to:
Pay the residual Balance (Balloon Payment) to buy the vehicle
Refinance and extend the lease
Trade the BEV in for another eligible vehicle and start a new lease
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5 Key Insights summary & takeaways
A novated lease on an eligible BEV offers a practical, low-risk and cost cutting benefit for an employer and convenience for an employee. key summary points of novated leases are:
They are a three way arrangement set up between Employer, Employee and lease provider.
They offer flexible packages for the employee that can include the vehicle and running costs.
They allow an employer to be able to provide an eligible EV to an employee with low financial risk and an FBT exemption and potential to transfer responsibility to another employer if the employee leaves to start employment with another company.
EV Battery Degradation: Concerned about replacement costs?
As more Australian business owners start to consider adopting EVs into their operations, it would be a natural and valid fear to have concerns around battery degradation that may lead to questions such as "how long will an EV battery last” or “If I need to pay for replacement how much would it cost”.
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Quick guide to points of interest below:
1 Fleet upgrading timeframes vs EV battery guarantees
2 Finding deals that go beyond standard warranties
3 Aftermarket EV battery repair and remanufacturing
4 EV battery aftermarket replacement vs new battery packs
5 Key Insights and takeaway summary
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1 Fleet upgrading timeframes vs EV battery guarantees
It is common for many leasing companies to structure finance offers on 3-5 year terms and for businesses to upgrade their Vehicle fleets within that same 3-5 year timeframe (or when vehicles have travelled 90,000 - 150,000 kms).
This is good to know for SMEs when it comes to transition to EV fleets, as the majority of EVs come with a standard state of health (SOH) battery guarantee (this guarantees an EV battery will hold a minimum percentage of its original capacity - often its 70%) that usually covers a period between 7 - 10 years and 160,000km or more.
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2 Finding deals that go beyond standard warranties
To assist in overcoming Battery Deterioration (Degradation) worries and further plan for the future, an SME could consider looking into vehicle manufacturer offers that have extended battery warranties as an optional extra, or into the growing number of aftermarket companies that specialise in EV battery repair and remanufacturing to help extend the life of their existing EVs and manage costs.
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3 Aftermarket EV battery repair and remanufacturing
There are companies available that provide specialist solutions for cost effective EV battery repair and remanufacturing that may include services that cover Battery diagnostics, charging system repairs, cell replacement, or repurposing and recycling options.
With the expected growth of a fast changing EV Sector, there is potential for more companies offering these services to emerge in Australia, They often provide their own warranties (e.g; 3 years for remanufactured units that offer an alternative to full replacement) which can be a practical option for businesses to consider if upgrading an existing EV fleet isn’t a viable option until a later date.
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4 EV battery aftermarket replacement vs new battery packs
While EV Battery aftermarket replacements can be at a lower cost than a new battery pack and aftermarket companies generally offer warranties, for out-of-warranty scenarios or for older EVs, the investment can vary.
A full battery pack replacement could be in a range of $5,000 to $22,000 or more, depending on applicable factors (e.g; EV model and battery size).
However, as is the norm with a lot of growing industries, as competition increases if more aftermarket options appear in the market, it may present more cost-effective repair or remanufacturing options for SMEs to consider over a brand new battery pack.
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5 Key Insights and takeaway summary
For Australian SMEs concerned about EV battery lifespan or looking to delay fleet upgrades, in addition to considering aftermarket solutions, there are practical steps you can implement that could help contribute to long-term battery health and maximise performance:
Educate Drivers: Include key EV manufacturer recommendations on charging practices (found in the vehicle's owner's manual) into new employee inductions or welcome packs.
Avoid Extreme Discharges: Encourage drivers to avoid frequently running the battery down to a near zero charge.
More Efficient Daily Charging: For routine use, aim to charge the battery when down to 20-30%, back up to 80-90%, rather than consistently to 100%.
Manage Temperatures: Where possible, avoid longer exposure times to extreme heat (e.g; parking in direct sun on hot days), as high temperatures can accelerate battery degradation.
ROI: Two Deals That Could Save You Money
For Australian SMEs, the transition to Electric Vehicle (EV) fleets can initially seem quite expensive, but when business owners factor in all the financial advantages and other benefits available that support EV adoption, it can lead them to a clearer picture of the long-term savings and the potential for a good return on investment (ROI) that the transition to EVs offers.
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To help you find a quick point of interest, here's a guide to the topics covered below:
1 The Real Deal on Total Cost of Ownership (TCO)
2 Exploring the Insurance Landscape: EV Fleet Coverage Insights
3 Key Insight takeaways
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1 The Real Deal on Total Cost of Ownership (TCO)
When considering a new vehicle for your business, the initial purchase price is only part of the equation. The true value is in the Total Cost of Ownership (TCO) when all costs for buying, running and maintaining are added together. This sum often reveals a better long term deal on EVs versus petrol or diesel vehicles mainly due to:
EV Fuel Savings: Powering an EV with electricity is typically more cost-effective per km than refueling an equivalent petrol or diesel vehicle. These savings are even greater if smart technology is used for off-peak charging times or integrating with on-site solar.
Reduced Maintenance: With less moving parts in the engine, EVs eliminate many costly maintenance items found in petrol vehicles such as no spark plugs, timing belts, drive belts, fuel and air filters, complex exhaust systems or need for regular oil changes. This significantly reduces the ongoing costs of EVs on maintenance.
Government Financial Incentives: While a number of Australian State Governments have moved focus more toward investing in infrastructure and energy solutions to support growing EV adoption than in direct rebate support, there may still be future government incentives available to help lower the TCO on EVs. A perfect example is the Fringe Benefits Tax (FBT) exemption on eligible EVs provided via a novated lease, which offers tax benefits for both businesses and their employees. For more detailed information on Novated leases and FTB, please refer to our article on this site ‘What’s The Deal with Novated Leases and FBT Exemption on EVs’.
To help your business project these potential savings, there are resources available such as the Transport for NSW TCO calculator that can help with your EV transition planning.
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2 Exploring the Insurance Landscape: EV Fleet Coverage Insights
Insurance is another key part of TCO, and the landscape for insuring EVs is evolving in Australia. While EV insurance premiums may sometimes be higher than comparable ICE vehicles (often due to higher initial purchase costs or specialised repair requirements for battery packs), specialised repair requirements for battery packs exist and many insurers are building networks of qualified EV repairers to ensure the EV market is supported with efficient expert services.
Many Australian insurers now offer specialised Electric Vehicle Insurance products tailored for business fleets. These policies commonly include benefits to address EV-specific needs, such as:
Coverage for charging cables and wall chargers.
Roadside assistance for towing a fully discharged EV to the nearest charging point.
Specific coverage for accidental damage that may occur during charging.
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3 Key Insight takeaways:
Businesses who look past the higher price point of an EV and focus on the long term benefits that exist to help lower TCO, can see the true cost of the deal which may look a lot better that it first appears,
To ensure more competitive premiums and reliable service for EV insurance, SMEs could compare quotes from multiple providers with strong experience, or specialised services that apply to EV technology and explore the access they offer to a network of qualified EV repairers.
Key EV Terminology for Australian SMEs: Business, Industry & Finance
In alphabetical order: FBT Exemptions - Fleet Electrification - Novated Lease - NVES - Total cost of Ownership (TCO).
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FBT Exemption (Fringe Benefits Tax Exemption)
Definition: A federal tax incentive allowing eligible EVs provided through novated leases or company cars to be exempt from Fringe Benefits Tax (FBT) in Australia.
Insight takeaway: The FBT exemption is a key element that can make the purchase of an EV for your business a much better deal, especially for novated leases, by substantially lowering the overall "after-tax" cost of the vehicle for both the employer and employee.
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Fleet Electrification
Definition: The strategic transition of a business's vehicle fleet from traditional internal combustion engine (ICE) vehicles to Electric Vehicles (EVs).
Insight takeaway: This transition offers long-term benefits including lower running costs, reduced emissions, and enhanced brand image.
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Novated Lease
Definition: A three-way salary packaging agreement between an employee, their employer, and a finance company, where vehicle payments are deducted from pre-tax salary.
Insight takeaway: Businesses can look for all-inclusive novated lease deals that bundle vehicle cost, running costs, and FBT savings into one pre-tax payment. This offers a low risk way for an SME to provide an eligible Electric Vehicle to an employee (you can read more detail on this topic in our ‘What’s the deal with Novated EV Leases and FBT exemption’ article on this site)
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NVES (New Vehicle Efficiency Standard)
Definition: A law introduced by the Australian Government that sets targets for CO2 emissions as an average for all of a manufacturers fleet wide sales over a year. Credits are given for beating emissions targets and financial penalties are issued for not meeting them. Credits can be banked for up to three years to offset potential future debits or can be sold to other manufacturers who struggle to meet their targets.
Insight takeaway As the penalties are monetary fines (per vehicle) for being over target and credits are earned for being under target, manufacturers might offer more aggressive deals and incentives on EVs to increase sales numbers and drive their emissions average down, that SMEs can take advantage of. For EV focused brands, gaining more credits can create a revenue stream selling credits to brands that also sell petrol Vehicles with higher emissions than an EV.
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TCO (Total Cost of Ownership)
Definition: The full cost of owning and operating a vehicle over its lifespan, including purchase price, electricity (fuel), maintenance, insurance, depreciation, and incentives.
Insight takeaway: While initial EV purchase prices can be higher, TCO often reveals that EVs are cheaper to own and operate in the long-term due to lower costs of recharging vs petrol, lower maintenance costs, and the assistance of government incentives.
About AP B2B Consultancy
My Story & Services
With two decades in B2B Media Sales and Marketing, I've seen firsthand the challenges Australian Businesses face and how important it is to find financial advantages while adapting to changing consumer behaviours. This experience has led me to focus on the Electric Vehicle and AI Technology sectors and the strategic opportunities available.
My interest in the evolving Electric Vehicle (EV) Industry is driven by a passion to find new deals, partnerships, and market information that can help SMEs make more informed business decisions. This platform, Newevdeals.com.au, is dedicated to uncovering these opportunities and providing actionable insights.
My business advisory services are based on a commitment to help you with:
Sales & Business Development: Utilising my B2B relationship-building and market trend analysis experience, I help clients stay informed on incentives and deals in the EV sector. This involves researching industry trends, understanding consumer behaviour shifts and the emerging technologies that can help businesses increase efficiency and profitability.
Strategic Market Expansion & Digital Presence for Deal Capture: I assist Australian businesses in evaluating new potential target markets and positioning, advising on digital presence for enhanced visibility and lead generation and offering insights on the opportunities that will help to encourage future growth in the rapidly changing EV sector.
My aim is to empower Australian businesses so they will thrive in the evolving EV landscape.
Contact Andrew at AP B2B Consultancy
Address
New South Wales, Australia
ABN
34735776260
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