In this video, Tom and Joy from Ludicrous Feed break down the upcoming changes to the FBT exemption for battery electric vehicles following the recent federal budget announcement. They walk through the three key phases: the current full exemption for EVs under the luxury car tax threshold (existing until 31 March 2027), Phase 2 (1 April 2027 to 1 April 2029) where only EVs under $75,000 receive the full FBT discount while vehicles between $75k and the LCT threshold receive just a 25% discount, and Phase 3 (from 1 April 2029) featuring a blanket 25% FBT discount for all eligible EVs. They also discuss why novated leasing quotes can lack transparency, particularly around interest rates and fees, and demonstrate tools to estimate savings, compare quotes side by side, and understand where savings come from, including real examples showing potential savings. Whether you are considering salary packaging an EV or just want to understand how the FBT changes affect novated leasing, this overview helps cut through the complexity | Video by Tom Gan (Tesla Tom) and Joy of Ludicrous Feed from Sydney Australia May 2026 Electric Vehicle FBT Discount Changes 2027-2029: What You Need To Know Ludicrous Feed x millarX Novated Leasing Collaboration: https://www.millarx.com.au/r/ludicrous - Receive 0.15% discount on the interest rate when you use our referral link ===== Financial Disclosure: - Ludicrous Feed receives commission from millarX successfully settled leases using our referral link: https://www.millarx.com.au/r/ludicrous - Quote comparisons are illustrative only and based on assumptions entered at the time of recording With thanks to our sponsors: carloop - Australian EV Data & Ownership Trends https://carloop.com.au/ ===== 00:00 Introduction 00:26 Phase 1: exisiting FBT EV discount until March 2027 02:11 Phase 2: FBT discount for EVs $75k or less only (1 Apr 2027 to 1 Apr 2029) 03:36 Phase 3: 1 Apr 2029 onward - blanket 25% FBT discount for all EVs 04:03 Greatest saving under current scheme under LCT 04:54 Novated Leasing Quote discussion: not always clear 05:24 Introducing millarx: transparent novated leasing company with interest rates and fees 05:54 Estimate Your Savings Tool Walkthrough 08:28 How easy is it to switch novated leasing providers 09:17 Comparison Tool Walkthrough 10:06 Example Quote 1 comparison breakdown - $5k savings 11:05 Comparison with Personal Loan and Cash 11:15 Example Quote 2 comparison - $15k savings 14:21 Summary and Overview ===== SUPPORT LUDICROUS FEED Use my referral link to purchase a Tesla product and get cash off and other exclusive benefits: https://www.tesla.com/en_AU/referral/thomas7208 Become a Channel Member to access exclusive perks! https://www.youtube.com/channel/UC2TWeqcaGYMobKoHiMtQNHQ/join PayPal: @teslatom or https://paypal.me/teslatom ===== Official Ludicrous Merch Store https://shop.spreadshirt.com.au/ludicrousfeed/ EVSE Australia | Code TESLATOM 5% OFF sitewide https://evse.com.au/ Top BYD Accessories | Code LUDFEED 5% off sitewide https://www.topbyd.com/ Jowua Tesla Accessories | Code TESLATOM5 5% OFF sitewide https://www.jowua-life.com/ ===== ABOUT LUDICROUS FEED Ludicrous Feed is a Sydney-based YouTube channel showing daily life as an Australian family with an electric vehicle. Tom and Joy provide straightforward candid insights into key issues around EV adoption such as vehicle range, charging infrastructure and road trip planning. The channel started in 2018 after Tom purchased his Tesla Model S. The weekly live stream provides an opportunity for audience members to engage with others from the EV community as well as to stay up to date with the latest industry news. They have a Sigenergy home battery coupled with rooftop solar and together have reviewed many electric vehicles for the channel including brands such as BYD, Geely (Polestar, Volvo, Zeekr, Smart), Hyundai Motor Group (Kia, Genesis), SAIC (MG, LDV), GWM, Stellantis (Leapmotor, Peugeot, Fiat, Abarth, Jeep), VW Group (Cupra, Skoda), BMW Group (Rolls Royce, Mini), GM (Cadillac), Ford, Toyota, Subaru, Mazda, Nissan, Renault, Xpeng, Chery (Omoda, Jaecoo), Deepal and GAC ===== CONTACT LUDICROUS FEED https://www.ludicrousfeed.com/link-in-bio/
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The problem is you have to use your company's leasing company and you can't really shop around. Leasing can provide savings but the less competitive environment encourages high interest rates from the leasing companies...
What none of the leasing companies show - which I find annoying - is "how much will the car cost eventually". It's a very simple calculation of TOTAL impact of lease payments on the salary (take home pay) at the end of lease + residual value of the car (incl. GST). This is extremely easy to calculate, and yet I have not seen any lease company show this figure in their quote. One excuse they give is, they don't know what the customer will do eventually with the car, so this number might not even mean anything to them. But my point is.. irrespective of that, what's the harm in showing what the car will truly cost?
Cool tool. Gives me a chance to voice my personal gripe with the governments whole strategy of EV incentives. I'm a 71 year old retiree, so don't have a salary, so can't take advantage of this, unlike you young whipper-snappers. I'm just expected to pay full price, just like all those people on casual employment. Rant over. Thanks guys.
We now just need to remove some of the benefits that Ute's get as I'm sure many are claiming it's work and it's not or other questionable methodologies to ensure they get their oversize RAM truck. There is also self-managed novated lease it just depends if you can do it but then you can pick whichever company gives you the best deal.
Hello everyone I'm Tom, this is joy 😊 Heloooo 😐
Ludicrous Feed x millarX Novated Leasing Collaboration: /r/ludicrous - Receive 0.15% discount on the interest rate when you use our referral link
Well done Tom and joy👍 very clearly explained. Hamjath
Pretty cool comparison tool!
I do this for my Tesla. I pay roughly 16% tax instead of 26%.
What figure is tested against the $75K threshold? The FBT base value? Including GST, on-road costs, stamp duty or excluding? etc.
How long does the promotion go for??
afaik if the employer doesn't refer to a specific novated lease provider, then you can find a third-party and gets your employer to approve it; as long as they approve your third-party you can use novated leasing
Joy cracks me up every time "helloooo.."
It’s great the lightning bolt is coming out of Joys head 😂
The downside is the huge interest rates and the giant balloon at the end. The tax savings are definitely an advantage though. Alternatively, there are some solid EV loans out there, I saw a loan from commbank for 5.2% which is nuts
two issues i see with this 1- yet to see any evidence of the $75000 cut off is it bare bone price of the car excl. gst, dealer fees and rego???? 2 the Gov estimates of lost revenue make the assumption that I ( and 90% of EV owners I know) would have bought an EV with out the scheme. Which is WRONG. the Gov wouldnt have made any where near the FBT as i wouldnt have leased an ICE or EV as the $$ dont stack up. With all costs for the EV being paid for with pre tax money your $2000 insurance is $2k of pre tax not $3K (assuming ave30% tax rate). so it means that the average employed punter can finally pay for a vehicle pre tax just like all the small business owners and tradies claiming their duel cab ute that they taek 4wheelng and drop the kids to soccer practice in. so the rort for them in thier Dual cab utes remains and the Ave joe buying an EV to save a few bucks is back being disavataged..
Hi Tom, do you know if grandfathering applies to cash payments? As in full FBT exemption if i buy a car under my company's name. We are looking at Y L. Thanks
Say i leased a zeekr 7x awd which is below the current cap but above the future cap and then i changed jobs 1 April 2027. Would a. my lease be honored regardless of employer until after the 5 years or b. would it be fine because the value after another year would have dropped below 75k?
Who gets 7% interest guaranteed for 5 years? The fact that they say paying cash is the most expensive option shows how untrustworthy this company is. There are plenty of situations where financing or leasing make sense. but being the cheapest is not one of them.... Jesus I can say that if I invest in power-ball lotto this Thursday I can get 40 mil.....