Electric vehicles (EVs) are no longer just a niche option—they’re fast becoming mainstream. With Australia on track for EVs to make up 30% of new car sales by the end of 2025, more businesses and individuals are exploring their financing options.
Whether you’re a business owner looking to add EVs to your fleet or simply want to take advantage of the growing number of EV incentives and finance options, this guide covers everything you need to know.
Table of Contents
- Why Electric Vehicles Are Booming in 2025
- EV Financing Options in Australia
- Government Incentives for EV Buyers
- Should You Consider an EV for Your Business?
- How Capital Plus Finance Can Help
Why Electric Vehicles Are Booming in 2025
Several key factors are driving record EV uptake in Australia this year:
- Expanded charging infrastructure across all major cities and regional corridors
- Greater model availability across all price points
- Government rebates and tax incentives
- Rising fuel costs encouraging a shift to electric
- Businesses wanting to reduce their emissions footprint
For small to medium businesses, the decision to invest in EVs is becoming more viable both financially and strategically.
EV Financing Options in Australia
🚗 1. Chattel Mortgage / Business Car Loan
Ideal for businesses purchasing EVs outright. You own the vehicle from day one, and the loan is secured against the asset. This option offers:
- Competitive fixed rates
- GST and depreciation benefits
- Flexible terms (usually 2–5 years)
🚗 2. Novated Lease
Popular with employees who want to lease a car using pre-tax income. EVs under novated leases can benefit from recent FBT exemptions.
Best for: Employers looking to offer EV salary packaging as a benefit.
🚗 3. Operating Lease / Rental Finance
Great for businesses that want to preserve cash flow and keep their fleet up-to-date. With no ownership obligations, you simply return or upgrade the vehicle at the end of the term.
Good for: Trades, logistics, or delivery businesses with evolving fleet needs.
🚗 4. Green Vehicle Loans
Some lenders now offer green loans specifically for low-emissions vehicles, often with discounted interest rates and favourable terms.
Tip: Check if your business is eligible for any sustainability-linked finance options.
Government Incentives for EV Buyers
EV-friendly finance is just part of the picture. Here’s what governments are doing to encourage adoption:
🏛️ Federal Incentives (as of 2025)
- Fringe Benefits Tax (FBT) Exemption: Available for eligible EVs under $89,332 used through novated leasing
- Instant Asset Write-Off (subject to thresholds): May apply to eligible EV purchases for small businesses
- Australian Renewable Energy Agency (ARENA) support: Funding for EV charging infrastructure in commercial use cases
🏙️ State-Based Incentives
Each state offers its own mix of rebates, registration discounts, and stamp duty exemptions. For example:
- NSW: Up to $3,000 rebate (limited to certain vehicle price caps), plus free stamp duty
- Victoria: Similar rebate schemes and ongoing support for fleet transitions
- Queensland & ACT: Generous stamp duty waivers and registration discounts
Pro tip: Always check the latest guidelines via official state government websites or electricloans.com.au for updates.
Should You Consider an EV for Your Business?
Here are a few key reasons businesses are making the switch:
- Lower running and maintenance costs compared to petrol/diesel
- Increasing access to charging infrastructure and fast-charging options
- Tax and depreciation benefits for eligible business-use vehicles
- Boosting sustainability credentials with clients and stakeholders
From rideshare and delivery fleets to trade vehicles and executive cars, EVs now span nearly all commercial use cases in Australia.
How Capital Plus Finance Can Help
Thinking about making the switch to electric? At Capital Plus Finance, we help businesses compare vehicle finance, novated lease, and green loan options across over 40 lenders. We’ll guide you through:
- Choosing between secured or unsecured vehicle loans
- Structuring repayments to match your cash flow
- Accessing government-backed incentives where available
- Supporting with fleet upgrades and equipment finance
👉 Contact Capital Plus Finance today to explore the best EV finance option for your business in 2025.
About Capital Plus Finance
We’re a Sydney-based equipment finance broker helping Australian SMEs secure funding for business vehicles, equipment, and expansion. With access to a wide panel of lenders, we help clients structure finance that supports long-term growth. Learn more at capitalplusfinance.com.au.
