As Australia heads towards a pivotal federal election, one thing is clear for the fleet management community: this isn’t just about roads and rhetoric — it’s about whether the next government will empower or hinder the fleet sector’s transition to cleaner, more cost-effective electric vehicles (EVs).
For the first time in more than a decade, federal election policies have real and immediate relevance for company fleets. Two contrasting visions for Australia’s transport future are emerging, and the decision voters make at the ballot box could either accelerate or stall the momentum fleets have been building toward net zero.
A Tale of Two Policies: Cost of Living vs. Long-Term Vision
Both major parties claim to offer cost-of-living relief, but their approaches to vehicle policy — particularly EV adoption — couldn’t be more different. The current Labor government has implemented two cornerstone initiatives to support the transition: the Fringe Benefits Tax (FBT) exemption for EVs and the New Vehicle Efficiency Standard (NVES). These policies directly support fleet managers seeking to electrify their operations without blowing budgets.
The FBT exemption, which removes the tax burden from EVs provided as a novated lease or company vehicle for personal use, has been a game changer. As the Electric Vehicle Council (EVC) notes, “The electric car discount has been helping thousands of workers finally afford to buy an electric vehicle”. Salary packaging an EV has gone from niche to mainstream in outer-suburban and regional areas like Werribee and Baulkham Hills, where long commutes make EV savings even more attractive.
In contrast, the Coalition has announced it would wind back this exemption. This move — widely condemned by industry bodies like the National Automotive Leasing and Salary Packaging Association (NALSPA) — would immediately undercut affordability for average Australians. “Winding back the EV FBT exemption would disproportionately affect working Australians… and increase the cost to own and operate a car,” said NALSPA CEO Rohan Martin.
NVES: A New Standard or Just a Guideline?
Labor’s NVES is another crucial tool. It applies a performance standard to the vehicles carmakers sell, encouraging them to offer more low-emission models. Backed by a system of credits and fines, the NVES is already working — providing greater EV choice and lowering the average fuel use of new cars sold.
Fleet managers have quietly relied on these emerging regulations to align vehicle purchasing with corporate net zero goals. The policy has “finally started to align with the corporate policy Net Zero,” as one commentator put it.
But under a Coalition government, the NVES would remain toothless. While pledging to “keep” the standard, the Coalition has made clear it will eliminate penalties for non-compliance — a move the EVC compared to “road rules without enforcement”. For fleet managers, this signals a return to uncertainty and limited choice, especially for organisations bound by emissions targets.
Why This Election Matters More Than Most
The fleet industry is often overlooked in the national policy debate, but this election could profoundly reshape its landscape. Plug-in hybrids have already lost their FBT exemption — now, battery electric vehicles could be next. “This May election is pinned on cost-of-living — Australians are looking for bold and lasting measures,” said EVC CEO Julie Delvecchio.
And it’s not just about environmental benefits. The economic argument stacks up: EVs save up to $3,000 annually on fuel and maintenance, while the Coalition’s alternative — a 25 cent fuel excise cut — saves just $700 over one year.
For businesses managing large fleets, these numbers add up quickly. The choice isn’t ideological — it’s practical.
What Fleet Managers Need to Know
For fleet managers, this election boils down to two questions:
- Will policy support or undermine the business case for EVs?
- Will the next government create an environment where manufacturers are incentivised to bring their best low-emissions vehicles to Australia?
Under the current Labor framework, the answer is yes. Under the Coalition’s stated plans, it’s unclear at best, and regressive at worst.
This moment requires clarity. Organisations with climate targets need consistent policy that reinforces their investment in sustainable transport. Removing the FBT exemption or gutting the NVES risks not only increased costs, but a collapse in momentum.
The Final Word
Fleet managers are pragmatic professionals. They don’t need rhetoric — they need vehicles that do the job, save money, and meet emissions targets. Right now, they’re on the verge of achieving that balance. But the policies in place — the very scaffolding enabling the transition — are under threat.
This federal election isn’t just a vote on fuel prices or tax cuts. It’s a vote on whether company fleets will be empowered to lead Australia’s low-emissions transport future — or be forced to slam the brakes on progress.
Come May, the fleet sector will be watching — not for party colours, but for policies that keep the wheels of cleaner transport turning.
