A guide to claiming EV charging costs on your tax
How EV charging claims work on a novated lease
04 August 2026
Thinking about getting an electric vehicle (EV) through a novated lease, or already driving one?
One of the benefits of an eligible EV novated lease is that you may be able to claim electricity costs associated with charging your vehicle.
The Australian Taxation Office (ATO) provides guidance on how these costs can be calculated and claimed.
Whether you're exploring the benefits of an EV or already charging your vehicle at home or on the go, understanding how EV charging claims work can help you get the most from your novated lease.
In this guide, we'll explain the available claim methods, the records you may need to keep, and how to submit a claim with SmartTM novated leasing.
Understanding your EV charging claim options
When you get an EV on a novated lease, you’ll want to maximise the tax savings available to you. One way is to make claims for eligible EV charging costs.
The ATO's Practical Compliance Guideline PCG 2024/2 outlines how electricity costs can be calculated for fringe benefits tax (FBT) purposes when charging an electric vehicle.
For eligible EVs, there are two main approaches available, depending on how and where you charge your vehicle. The approach you choose may affect both the records you need to keep and the value of your claim.
It's important to remember that you must use the same claim method for each vehicle throughout a single FBT year (1 April to 31 March).
If you're submitting a claim using the ATO's EV home charging rate and your claim period spans multiple FBT years, you may need to submit separate claims because the ATO charging rate can change from one FBT year to the next.
Method 1: Using the ATO EV home charging rate
A simple option is to use the ATO’s EV home charging rate. Rather than calculating your actual electricity usage, this method applies a standard cents-per-kilometre rate published by the ATO each year.
This option is designed to make claiming home charging costs easier, particularly if you don’t have a dedicated electricity meter for your EV charger.
Who is this method best suited to?
This method may be suitable if:
- You primarily charge your EV at home.
- You don't have a separate smart meter tracking EV electricity usage.
- You want a simpler approach with less-record keeping.
- You drive a battery electric vehicle or other eligible zero-emissions vehicle.
Who is this method available for?
This method is generally available for eligible zero-emissions vehicles, such as battery electric vehicles (BEVs). Plug-in hybrid electric vehicles (PHEVs) are generally no longer considered eligible zero or low-emissions vehicles from 1 April 2025, subject to transitional rules.
How do I use this method?
To use this method, you’ll need records showing the kilometres travelled during the FBT year, typically through odometer records. The ATO then allows you to apply its published EV home charging rate to calculate your claimable home charging costs.
For the 2026-27 FBT year, the ATO’s EV home charging rate is 5.47 cents per kilometre. The ATO publishes and updates the EV home charging rate periodically, so it’s important to use the rate applicable to the relevant FBT year.
For example, if you drive 20,000 kilometres during the FBT year and use the current EV home charging rate, your claimable home charging cost would be $1,094 (20,000 km x $0.0547).
Method 2: Claiming actual costs
The second option is to claim the actual cost of the electricity used to charge your EV. This approach requires more detailed record-keeping but could result in a higher claim if you can accurately track your expenses. This method is best for those who use a mix of home, public, and workplace charging.
Who should use the actual cost method?
Consider this method if:
- You have a dedicated electricity meter that separately measures the electricity used to charge your EV. A household electricity meter that also measures other household electricity use cannot be used for this purpose, even if charging app data or charging times appear to align with your charging activity.
- You frequently use public charging stations and keep all your receipts.
- Your employer provides workplace charging and can give you a detailed report of your usage and costs.
Who is this method available for?
This method can be used for eligible zero or low emissions vehicles.
How do I use this method?
To use this method, you must have complete and accurate records. This may include electricity data from a dedicated home charger, invoices from public charging providers, charging app reports and workplace charging records. Without supporting documentation, you won't be able to claim your actual costs.
To claim actual charging costs at home, the electricity used to charge the vehicle must be able to be separately identified and supported by appropriate records.
Method 3: Charging at home and on the go
Many EV drivers use a combination of home charging and public charging stations.
The ATO allows public charging costs to be included in certain circumstances where you can accurately determine how much charging occurred at home compared with commercial charging locations.
Charging data from your vehicle, charging app or other telematics tools may help support your calculations. Keeping accurate records can help ensure you're claiming the appropriate expenses.
The importance of keeping good records
Accurate record-keeping is essential, regardless of which claiming method you choose. The records you'll need depend on the method you're using.
For the ATO EV home charging rate
If you're using the ATO's EV home charging rate, you'll need to maintain records of the kilometres travelled during the FBT year. Odometer readings are an important part of this process and should be captured at the beginning and end of each FBT year, or when required by your novated lease provider.
Keeping accurate odometer records helps ensure you can correctly calculate the electricity component of your claim using the ATO's published cents-per-kilometre rate.
For home charging
If you have a dedicated meter for your EV charger, keep records of the electricity used to charge your vehicle.
If available, retain charging reports generated by your vehicle, home charger or charging app. Some systems can record charging location, electricity usage and charging history, which may assist in demonstrating how much charging occurred at home compared with public charging locations.
For public charging
Use a dedicated app or account for public charging where possible. Keep copies of receipts and invoices showing the date, location and charging cost.
Create a simple system
Consider using a spreadsheet, charging app or digital folder to store odometer readings, charging receipts, invoices and charging reports throughout the year. Having all your records in one place can make preparing and supporting your claim much easier.
How to make the claims with Smart
To make an EV charging claim with Smart, submit your expenses online through your account portal:
- Log in to your Smart online account
- Navigate to the My Benefits section and select My Vehicles
- Click on the Claims menu
- Follow the prompts
If you’re claiming eligible EV home charging expenses, you’ll need to complete Smart’s EV Home Charging Expense Claim Form and provide any supporting documentation required for your chosen claim method.
Before submitting any claims, make sure you’ve retained any relevant records, such as odometer readings, charging reports, electricity data or public charging receipts.
If you’re unsure which claiming method is right for your circumstances, the Smart team can help guide you through the process.
Choosing the right method for your novated lease
There isn't a single approach that's right for everyone.
If you're considering an EV novated lease, it's worth thinking about how you'll charge your vehicle day to day. Drivers who mostly charge at home may prefer the simplicity of the ATO's home charging rate, while those who regularly use public charging networks may benefit from maintaining more detailed records of their actual expenses.
The key is choosing the method that best reflects your charging habits and keeping the records required to support your claim.
If you're considering making the switch to an EV or want help understanding your charging claim options, Smart's novated leasing specialists are here to help.
How Smart helps with EV charging claims
Understanding EV charging claim requirements can feel complex, particularly when deciding which ATO-approved method is right for your circumstances. Smart can help make the process easier for eligible EV novated lease customers.
Smart provides an EV Home Charging Expense Claim Form to support customers who are claiming eligible home charging expenses. Claims can be submitted online through your Smart account, or via the Smart Salary Packaging app, making it easy to manage your novated lease expenses wherever you are.
If you're unsure whether the ATO EV home charging rate or the actual cost method is more suitable for your situation, the Smart team can help explain the requirements, record-keeping obligations and supporting documentation needed for each approach.
From understanding your options through to lodging a claim, Smart supports eligible EV novated lease customers throughout the claims process, helping you navigate the requirements with confidence.
With Smart, you can:
- Submit EV charging claims online or through the Smart Salary Packaging app.
- Access the EV Home Charging Expense Claim Form.
- Understand the requirements of the ATO EV home charging rate and actual cost methods.
- Learn what records and supporting documentation may be required.
- Receive support throughout the EV charging claim process.
EV charging claim mistakes to avoid
- Using different claim methods within the same FBT year: you must use one method per vehicle for the entire FBT year.
- Not keeping odometer records: if you’re using the ATO EV home charging rate, accurate odometer records are essential.
- Trying to use a household electricity meter: A meter used for multiple household purposes cannot be relied upon to claim actual EV charging costs.
- Missing public charging receipts: Claims based on actual charging costs require supporting documentation.
See how much you could save with an EV novated lease
If you’re thinking about making the switch to an electric vehicle, Smart can help you understand the potential savings available through an eligible novated lease.
Use our calculator to estimate your savings or speak with one of our specialists for personalised guidance.
Frequently asked questions about EV charging claims
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.
Sources:
ATO Electric Cars Exemption information: Electric cars exemption | Australian Taxation Office
ATO Practical Compliance Guideline: PCG 2024/2 | Legal database