Fleet Managers across Australia might not realise it, but there is a significant policy battle underway that will directly influence their ability to transition to low and zero emission vehicles.
Right now, the success of electric vehicles in Australia hasn’t been driven by traditional fleet procurement. It’s been driven by novated leasing—and specifically, the Electric Car Discount through the FBT exemption.
That matters more than most organisations understand.
From where I sit, working closely with fleet operators, the biggest barrier to EV adoption isn’t vehicle availability—it’s capability. Many organisations are still operating at a low level of fleet management maturity. They don’t yet have the policies, data, or internal alignment required to build robust EV transition plans.
EV adoption requires a different approach—whole-of-life cost analysis, charging strategy, driver engagement, and executive buy-in. That’s a step change for many fleets.
The hidden engine of EV adoption
While fleets have been slow to move, the consumer market has quietly accelerated—and that’s largely due to the FBT exemption.
Novated leasing has enabled thousands of everyday Australians to access EVs with a lower financial barrier. That has created real momentum in the market.
As National Automotive Leasing and Salary Packaging Association (NALSPA) CEO Rohan Martin explains:
“Tens of thousands of everyday working Australians, many of whom are living in the outer suburbs, have made the switch to EVs with the help of this Discount and they wouldn’t have without it.”
This isn’t just a consumer story—it’s a fleet story. Because fleets depend on a healthy new and used vehicle market.
Why fleets need the used EV market to grow
One of the biggest challenges I see is confidence—particularly around residual values and whole-of-life cost modelling. Fleet managers need data. Leasing companies need data. Finance teams need data. And that data only comes from vehicles being bought, used, and resold.
Novated leasing is critical because it feeds the used EV market. Vehicles on three, four, and five-year leases eventually come back into the market, building supply, improving price transparency, and reducing risk.
Without that pipeline, fleets face uncertainty—and uncertainty slows decision-making. Fleet Managers need more electric vehicles in the market.
Change management is still the biggest barrier
Even with strong policy support, adoption isn’t automatic. Fleet electrification is a whole-of-organisation change program.
It involves:
- Executives approving new strategies
- Finance teams reassessing cost models
- Drivers adapting to new technology
- Operational teams managing charging and utilisation
And layered over all of that is misinformation. There is still a mix of uncertainty, outdated assumptions, and conflicting messages about EVs in the market. That makes internal stakeholder alignment harder.
For Fleet Managers, this is where maturity becomes critical. Improving data, policies, and internal processes will determine how quickly organisations can transition—not just whether EVs are available.
The risk of removing the EV Discount
The Federal Government is now reviewing the Electric Car Discount. From a fleet perspective, removing it would have a clear consequence: slower adoption.
Rohan Martin puts it plainly:
“The EV Discount is one of the most effective, practical and popular clean transport policies Australia has ever had.”
And he’s right.
If the policy is removed, fewer new EVs will enter the market. That reduces supply, limits used vehicle availability, and ultimately makes it harder for fleets to justify the transition.
In that scenario, organisations will rely more heavily on regulatory pressure—like the New Vehicle Efficiency Standard (NVES)—to reduce emissions. That will help, but it won’t deliver the same speed of transition.
What this means for Fleet Managers
Even if your organisation hasn’t started its EV journey, this policy matters to you. Because your future fleet strategy depends on:
- A strong pipeline of new EVs
- A growing used EV market
- Reliable residual value data
- Confidence in whole-of-life cost modelling
All of these are being supported—indirectly—by the FBT exemption.
Fleet electrification doesn’t happen in isolation. It’s part of a broader ecosystem. And right now, that ecosystem is being shaped by policy decisions happening in the background.
Most Fleet Managers won’t be part of that conversation. But they will absolutely feel the outcome.
