Electric vehicles explained: range, charging, costs and potential tax savings
Questions Australians are asking about EVs

17 August 2026
Electric vehicles (EVs) are now a familiar sight on Australian roads. With more models available than ever before, growing charging infrastructure and initiatives like the Electric Car Discount, many Australians are exploring whether an EV could suit their lifestyle.
But despite the growing number of options, plenty of questions remain.
How far can an EV really travel? Is charging difficult? Are EVs actually affordable? And is the Electric Car Discount still available?
At SmartTM, Australia’s leading salary packaging and novated leasing provider, we help thousands of employees compare vehicles and understand their options every year. Here are some of the most common EV questions we hear – and the answers.
How far can an EV actually go?
Most modern EVs offer more than enough range for everyday Australian driving.
The average Australian drives around 40km per day, while many of today's EVs offer between 400km and 600km of range on a single charge.
For many drivers, that means several days, or even a full week, between charges.
For commuting to work, school drop-offs, shopping and weekend activities, range is rarely a barrier. Modern EVs can comfortably meet the needs of most Australian households.
Is charging an EV difficult?
For many drivers, charging becomes part of their normal routine. Unlike petrol vehicles, which require trips to a service station, EVs can often be charged while parked at home, at work or while shopping.
Many EV owners simply plug in overnight and wake up to a full charged vehicle each morning.
When travelling longer distances, public fast chargers can add hundreds of kilometres of range in as little as 20 to 30 minutes, depending on the charger and vehicle.
Can I charge an EV using a standard power point?
Most EVs can be charged using a standard household power point, although charging is slower than using a dedicated wall charger. Some owners choose to install a home EV charger for faster charging.
Does Australia have enough public EV chargers?
Australia’s charging network continues to expand rapidly.
There are now more than 1,000 fast-charging locations across Australia, with additional sites being added across metropolitan, regional and highway locations every year.
Whether you’re travelling between major cities or exploring regional Australia, charging options are becoming increasingly accessible. Many charging stations are also located near cafes, shopping centres and rest stops, allowing drivers to recharge both themselves and their vehicle during a break.
And it’s not just city drivers benefiting from the growing network. Road trips in an EV are becoming easier to plan thanks to improved charging coverage along some of Australia’s most popular travel routes.
For example, in our article, An EV Road Trip from Sydney to Merimbula, we explored what it's really like to drive an EV along the NSW South Coast.
The journey highlights how drivers can comfortably travel hundreds of kilometres while accessing charging infrastructure in key regional locations along the way. It also demonstrates how modern EV range, combined with strategic charging stops, makes longer journeys both practical and smooth.
Does the government still offer any tax incentives for EVs?
Yes, significant tax benefits still apply to eligible electric vehicles through the Electric Car Discount.
Introduced by the Federal Government, the Electric Car Discount provides a Fringe Benefits Tax (FBT) exemption for eligible^ electric vehicles acquired through a novated lease, helping reduce the overall cost of ownership for many Australians.
For eligible EVs, a novated lease can deliver potentially substantial savings through:
- No Fringe Benefits Tax (FBT)
- Pre-tax salary deductions
- GST savings on eligible vehicle and running costs
- Salary-packaged charging costs
- Lower overall ownership costs
Depending on the vehicle and individual circumstances, these savings can add up to thousands of dollars each year.
What EVs are eligible for the Electric Car Discount?
The Electric Car Discount can deliver potentially significant tax savings, but not every EV automatically qualifies.
What makes an EV eligible?
To be eligible, a vehicle must generally meet several criteria:
- Be a battery electric vehicle (BEV) or hydrogen fuel cell vehicle (FCEV)
- Be provided to an employee through a novated lease
- Have been first held and used on or after 1 July 2022
- Have a value below the Luxury Car Tax (LCT) threshold for fuel-efficient vehicles at the time it was first supplied.
When is the Luxury Car Tax (LCT) updated?
The LCT threshold is updated annually by the Australian Taxation Office (ATO). For FY 2026-27 the LCT threshold is $91,661.
Common eligible EVs
Many of Australia’s most popular EVs qualify for the Electric Car Discount, including models such as:
- Tesla Model Y
- Tesla Model 3
- BYD Seal
- BYD Dolphin
- BYD ATTO 3
- BYD Sealion 7
- Kia EV3
- Kia EV5
- Kia EV6
- Hyundai Kona Electric
- Hyundai IONIQ 5
- Hyundai IONIQ 6
- Polestar 2
- Polestar 4
I heard there were changes to the EV Discount?
The Federal Government has confirmed that the Electric Car Discount will continue beyond 2027 for eligible EVs acquired through a novated lease. Rather than ending abruptly, the tax benefits will become less generous over time.
If you’re unsure how the upcoming changes may affect your potential savings, read our guide on the changes announced to the EV DIscount Policy.
Can a novated lease make an EV more affordable?
For many people, yes.
A novated lease allows eligible employees to package vehicle costs and expenses through their salary, helping reduce the after-tax cost of driving.
A Smart novated lease can typically include:
- Vehicle finance
- Registration
- Insurance
- Servicing
- Tyres
- Roadside assistance
- Charging costs
When combined with the Electric Car Discount, eligible EVs could deliver more potential savings compared to taking out a traditional car loan.
Is now a good time to consider an EV?
Australian drivers have more choice than ever before.
There are now electric SUVs, family vehicles, sedans and performance vehicles available across a broad range of budgets and lifestyles.
At the same time, charging infrastructure continues to expand, technology continues to improve and the Electric Car Discount remains available for eligible vehicles.
For Australians considering their next vehicle, there has never been more choice in the EV market.
Why do Australians choose Smart for EV novated leasing?
Smart is Australia’s leading salary packaging and novated leasing provider. We help employees compare vehicles, understand available tax benefits and estimate potential savings through a novated lease.
Whether you’re considering a Tesla, BYD, Kia, Hyundai or another eligible EV, Smart can help you explore your options and make an informed decision.
Ready to explore your options?
From understanding the Electric Car Discount to comparing potential savings, Smart can help you make a more informed decision about your next vehicle.
Get a personalised novated lease quote and discover how much you could save on an eligible EV.
Frequently asked questions about EVs
Important information
This is general information only. Before entering into any salary packaging or novated leasing arrangement, you should consider your objectives, financial situation and needs, and obtain appropriate legal, tax, financial, or other professional advice based upon your own particular circumstances. This information is current as at July 2026.
^ Fringe Benefits Tax (FBT) exemption available for eligible electric or hydrogen cell vehicles purchased through a novated lease up to the Luxury Car Tax limit ($91,661 in FY 2026-27).