For years, electric vehicles were seen as expensive, niche, or only suited to early adopters. That perception is changing rapidly.
A new wave of entry-level and mid-priced EVs is hitting the Australian market, and when combined with current tax concessions, electric driving is becoming one of the most cost-effective ways to own a new car.
Leading the charge are brands like BYD, Tesla, Kia, Hyundai and MG, all introducing models designed for everyday drivers, commuters, families and first-time EV buyers, rather than luxury buyers alone.
Affordable EVs Are No Longer a Future Concept
Models such as the BYD Atto 1, BYD Dolphin, MG4, Tesla Model 3, Kia EV5 and Hyundai Kona Electric are redefining what an electric vehicle costs in real terms. In particular, the BYD Atto 1 has drawn attention by arriving at around $25,000 drive-away, making it one of the most affordable brand-new EVs available in Australia. At this price point, EVs are no longer competing only with premium SUVs, they are competing directly with small petrol hatchbacks and compact SUVs.
For buyers who want a step up in size or range, options like the BYD Dolphin, MG4 and Tesla Model 3 offer more space and technology while remaining well below traditional luxury pricing.
Where EVs Really Start to Win: Running Costs and Tax Savings
Purchase price is only part of the equation. Where electric vehicles truly separate themselves is in whole-of-ownership costs, particularly when packaged through a novated lease. Under current Australian legislation, eligible battery electric vehicles are exempt from Fringe Benefits Tax (FBT) when salary packaged, provided they fall under the luxury car tax threshold. This means lease payments and running costs can be paid pre-tax, significantly reducing the effective cost to the driver.
When this is combined with GST savings, lower servicing requirements, and reduced “fuel” costs through home or workplace charging, the numbers can shift dramatically compared to a petrol or diesel vehicle.
When the Numbers Are Added Up, the Maths Is Hard to Ignore
Over a five-year novated lease, the total out-of-pocket cost of driving a BYD Atto 1 can be less than the drive-away value of the car itself. Importantly, this figure isn’t limited to the cost of the vehicle. It represents the all-in cost of ownership, covering registration, comprehensive insurance, charging, servicing and maintenance. Every major expense associated with running the car, all bundled into a single package.
In practical terms, it means that for some drivers, choosing not to consider an electric vehicle could be the more expensive decision over the long term.
More Choice Than Ever Before
What makes this shift particularly important is the breadth of choice now available. Buyers are no longer limited to a single EV option or body style:
- Small / city EVs: BYD Atto 1, MG4
- Hatchbacks & medium cars: BYD Dolphin, Tesla Model 3
- SUVs: Kia EV5, Hyundai Kona Electric, Tesla Model Y
- Performance and premium: Tesla Model 3 Performance, higher-spec EV5 variants
This growing range means drivers can choose an EV that fits their lifestyle, whether that’s commuting, family duties or longer-distance travel, without paying a premium for the technology.
The Tipping Point for Electric Vehicles
With more affordable models entering the market and tax concessions firmly in place, electric vehicles are reaching a tipping point. What was once a future-focused decision is now, for many Australians, a practical and financially smart choice.
For drivers weighing up their next vehicle, the question is no longer “Are EVs too expensive?”
Instead, it’s increasingly becoming: “Why would I pay more to keep driving petrol?”
