Liz Wells says she relieved she doesn’t have to worry about volatile petrol prices since getting a Tesla. (Source: Liz Wells)
Surging petrol prices have sparked an uptick in interest for electric vehicles (EVs) as Aussies try to shield themselves from future price spikes. The cost of filling up petrol cars has jumped amid the war in the Middle East, with unleaded and diesel prices heading above $2 a litre.
Brisbane mum Liz Wells is relieved that she doesn’t have to worry about rising petrol prices or supply. The senior program coordinator purchased a Tesla Model 3 in February last year and has found it a lot cheaper to run than her previous Honda.
“I’m really lazy putting petrol in my car. I’d leave it until I had like 1 per cent and I would always run late,” she told Yahoo Finance.
“Then you are at the whim of whatever the price is at that petrol station because you’re unorganised.”
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Wells charges her Tesla at home and estimates it is adding about $50 a month to her and her husband’s electricity bills. Previously, she was “easily” spending $100 a fortnight on petrol for her car.
“So the ability to charge it at home, and it is cheaper to run, and there is no servicing as well. I just had a tyre rotation [that cost $89] and that’s all I’ll need for another year or so,” she said.
Research released by the Electric Vehicle Council and University of Sydney this week found more than 70 per cent of EV owners reported fuel savings of more than 60 per cent compared to their previous petrol car, while 73 per cent spent less than $300 per year on maintenance.
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Wells purchased the Tesla for around $54,000 through a novated lease, with a term of five years. A novated lease is where you make your repayments from your pre-tax salary with approval from your employer under a salary sacrifice arrangement.
The government offers a fringe benefits tax exemption, known as the Electric Car Discount, that allows salaried employees to take out a novated lease on an EV and pay for it from their pre-tax salary without incurring fringe benefits tax.
Fringe benefits tax is paid by an employer, but some employers may require employees to reimburse them to offset the cost. Under the current fringe benefits tax exemption, someone leasing a $60,000 EV would save nearly $12,000 a year.
Wells got her Tesla through a novated lease, with the government currently offering a fringe benefits tax exemption for EVs. (Source: Liz Wells)
Since the tax break came in in July 2022, more than 100,000 people have taken out a novated lease on an EV or plug-in hybrid. The exemption for plug-in hybrid EVs ended last year on April 1, 2025, meaning leases signed after that date are no longer eligible for the discount.
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The government has been under pressure to scale back the tax break as the cost of the program blows out to $560 million a year, ten times more than the $55 million forecast in 2024-25. It is currently reviewing the scheme, which is due to be completed by mid-2027.
As the Iran war drives petrol prices higher, the Electric Vehicle Council has called on the government to retain the discount.
“EVs are cheaper to run and don’t face the same exposure to global oil shocks. Their ‘fuel’ is electricity – often cheaper off-peak and free for households with rooftop solar,” Electric Vehicle Council CEO Julie Delvecchio said.
“Add lower servicing costs and EVs protect families from the rollercoaster of global petrol prices.”
Electric car makers, dealers and finance companies say they are seeing a surge in interest for EVs following the rising prices at the bowser.
Tesla reported some customers had become “quicker” to finalise purchases in recent weeks, while online listing platform Carsales says it has seen a surge in consumer interest for EVs.
Used car dealer Pickles Auctions reported a 30 per cent jump in searches for EVs on its website last week, while novated lease provider Smart is also seeing a rise in customer enquiries.
Smart calculated an Aussie worker could save $314 a month with an EV on a novated lease versus financing an ICE vehicle, based on petrol prices being $2.20 a litre.
If petrol prices rose as high as $3.30 a litre, it claimed the savings would rise to more than $390 a month.
According to the ACCC, motorists in Australia’s five biggest cities were paying on average around $2.19 a litre for regular unleaded last week. This was an increase of nearly 49 per cent since February 20.
Wells said she felt “smug” that she didn’t need to worry about filling up her car at the bowser.
“You’re not at the mercy of whatever is happening in the world, or whatever petrol stations are deciding to charge,” she said.
“You’re in control of it.”
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