Key takeaways:
EOFY car deals should be compared by drive-away cost. Check discounts against registration, stamp duty, CTP, insurance, delivery fees and finance costs.
EV savings depend on current rules and eligibility. FBT exemptions, luxury car tax thresholds and state concessions can vary by vehicle type, price and timing.
Novated leases are not the only finance option. Compare salary packaging costs, FBT treatment, lease terms and end-of-lease obligations with a standard car loan.
Car finance can help set your EOFY budget early. Pre-approval is not final approval, but it may help clarify your price range before negotiating.
Business car tax claims need professional advice. Instant asset write-off, depreciation, GST and business-use claims depend on your structure, records and vehicle use.
Every year in June the Australian automotive market shifts into high gear, offering a golden window for consumers eyeing a new set of wheels. In 2025, Australia's vehicle market remained steady, with 1,209,808 vehicles sold.
Dealerships, eager to clear inventory and meet annual sales targets, roll out enticing offers, including substantial discounts, and attractive perks like free servicing or accessories.
Moreover, for businesses and individuals alike, buying a vehicle before June 30 can offer nice tax advantages, potentially impacting your end-of-year financial position in a good way. With this convergence of dealer incentives and fiscal benefits, the EOFY period stands out as an opportune moment to drive away in a new car.
EVs at EOFY: What buyers need to know
Electric vehicles are now a larger part of EOFY car sales, especially for buyers comparing running costs, salary packaging and novated lease options.
According to the Federal Chamber of Automotive Industries report, EV sales reached 103,269 units in 2025, accounting for 8.3% of new vehicle sales. More than 100 battery electric vehicle models were available in Australia, giving buyers more choice across price points and vehicle types.
Before buying an EV at EOFY, check whether the vehicle suits your driving needs, charging access, budget and finance structure.
The EV FBT exemption may apply
Under current rules, an eligible employer-provided electric car may be exempt from fringe benefits tax (FBT). This applies only where the vehicle and arrangement meet the ATO’s eligibility rules.
To qualify, the vehicle generally needs to be:
A zero or low-emissions vehicle
First held and used on or after 1 July 2022
Used by a current employee or their associate
Below the luxury car tax threshold for fuel-efficient vehicles
Not a plug-in hybrid electric vehicle, unless transitional rules apply
From 1 April 2025, plug-in hybrid EVs are no longer treated as zero or low-emissions vehicles for the EV FBT exemption. Some existing arrangements may continue under transitional rules.
For FY2025–26, the luxury car tax threshold is:
Vehicle type | FY2025–26 threshold |
|---|---|
Fuel-efficient vehicles | $91,387 |
Other vehicles | $80,567 |
Luxury car tax generally applies at 33% on the value above the relevant threshold. From 1 July 2025, the definition of a fuel-efficient vehicle changed from 7 litres per 100km or less to 3.5 litres per 100km or less. This may affect which vehicles qualify for the higher threshold.
On 5 May 2026, the Federal Government announced proposed changes to the EV FBT exemption. The current full exemption is proposed to continue until 31 March 2027. From 1 April 2027 to 31 March 2029, the full exemption would only apply to EVs costing $75,000 or less.
EVs costing more than $75,000 but below the luxury car tax threshold would receive a 25% FBT discount during that period. From 1 April 2029, eligible EVs below the luxury car tax threshold would receive a 25% FBT discount instead of a full exemption.
Existing leases are expected to be grandfathered under the rules that applied when they were entered into. However, these changes have been announced but are not yet law, so check the latest rules before relying on them.
If you are considering an EV through salary packaging or a novated lease, EOFY may be a useful time to compare your options. This is especially important if the vehicle costs more than $75,000, or if you are comparing a standard car loan with a salary packaging arrangement.
The right choice depends on your employment arrangement, tax position, driving needs, vehicle price and finance structure. Speak with your accountant or registered tax adviser before making a decision, particularly if you are relying on tax treatment or salary packaging benefits.
Novated leasing: What it is and why EOFY matters
A novated lease is a three-way agreement between you, your employer and a finance provider. It is set up through salary packaging, where agreed vehicle costs are deducted from your salary. This may reduce your taxable income, depending on your income, lease structure and circumstances.
EOFY can be a useful time to review whether a novated lease suits your situation, especially if you are comparing vehicle costs, salary packaging and tax treatment before 30 June.
Before choosing a novated lease, compare it with a standard car loan.
Option | How it generally works | What to check |
|---|---|---|
Novated lease | Vehicle costs are packaged through your salary, usually with your employer and a finance provider involved. | Employer eligibility, salary packaging fees, tax treatment, lease term, running costs and end-of-lease options. |
Standard car loan | You borrow directly and make repayments from your own funds. | Interest rate, repayments, fees, loan term, balloon payment and early payout costs. |
A standard car loan may suit buyers who want a more direct finance structure or whose employer does not offer salary packaging. A novated lease may suit eligible employees who want to package vehicle costs through salary, provided the numbers work for their circumstances.
Why EVs have changed the novated lease
Eligible electric vehicles may be worth reviewing because the current EV FBT exemption can apply to eligible electric cars provided as a car benefit. This may include vehicles provided through salary packaging or a novated lease, where the rules are met.
This does not mean a novated lease will suit every buyer. Your employer must offer salary packaging, and the overall benefit depends on your income, vehicle price, lease costs, running costs, FBT treatment and tax position.
State-by-state perks of buying a car during EOFY
While EOFY car deals pop up across Australia, the cost of getting on the road isn't the same in every state or territory. The numbers can shift from rego costs to EV incentives, and it's worth knowing what you're in for. Here's how things compare across the country:
State | Registration cost example* | Stamp duty concessions or benefits |
|---|---|---|
NSW | (This may include registration fees, vehicle tax and number plate fees, while CTP is arranged separately.) | Motor vehicle duty applies, and the NSW EV stamp duty exemption has ended except for transitional cases. |
VIC | (This may include the registration fee and TAC charge, with duty and plate fees usually applying separately for new registrations.) | VIC applies motor vehicle duty by vehicle type and value, with a lower duty rate for eligible low-emission passenger vehicles. |
QLD | (This may include the registration fee, traffic improvement fee and CTP insurance, depending on the CTP insurer.) | QLD applies vehicle registration duty by vehicle type and value, with lower rates for EVs and hybrid light cars. |
WA | (This may include the vehicle licence fee, motor injury insurance and recording fee, with vehicle licence duty usually applying separately.) | WA vehicle licence duty generally applies, and the Zero Emission Vehicle Rebate Scheme closed on 10 May 2025. |
SA | (This may include the registration fee, CTP premium, Lifetime Support Scheme levy and administration fees, with stamp duty usually applying separately.) | EV subsidy has ended, and the registration fee exemption only applied to eligible vehicles first registered up to 30 June 2025. |
TAS | (This may include the registration fee, motor tax and MAIB premium, with duty usually applying separately.) | EV and hydrogen vehicle duty exemption applied to earlier eligibility periods and is no longer available. |
ACT | (This may include registration, motor accident injuries insurance and government fees, with duty usually assessed separately.) | ACT uses emissions-based motor vehicle duty, with zero-emission vehicles receiving the lowest duty treatment. |
NT | (This may include registration, administration fees and the Motor Accidents Compensation contribution, with stamp duty usually applying separately.) | NT offers eligible plug-in EVs free registration and a stamp duty concession of up to $1,500 until 30 June 2027. |
What are the 5 reasons EOFY may be a great time to buy a car?
If you’ve been tempted by the thought of driving around in a new car and finally getting rid of your old one, here are the five things you might want to consider.
1. There are great sales offers.
Every year, car manufacturers and dealerships cut prices and offer huge discounts on cars leading up to 30 June. Car dealers usually weigh up the revenue and profit they’ve made over the year against their targets. This way, they can tally the stock they have on hand to work out their sales and sometimes offer thousands in savings on new and demonstrator cars.
Another temptation (alongside the discounts) is the value adds like free on-road costs, upgrades and optional extras like alloy wheels. They can also offer extended warranties which means you could nab a great deal on your next car.
EOFY is a busy time to buy a new car so it’s helpful to know the make and model you’re after and understand what you’re buying before heading to a showroom to get the deal done.
2. You could get a good price on a trade-in.
There’s been a massive demand for second-hand cars with fewer vehicle imports in recent years. For this reason, now could be a good time to secure a great price on your trade-in to go towards your next car.
If you have a car you want to trade in, it may be helpful to have an idea of how much your current car is worth. This can help you prepare to negotiate a good trade-in deal. You can do this with free online valuation tools from drive.com.au or carsales.com.au.
When filling out your details make sure that you know the difference between the build year and model year (for example, the build year could be 2019 for a 2020 model). The dealer will price the trade-in from the build year, which depreciates the older it becomes.
When dealerships provide you a quote to trade-in, make sure this lines up with what you have researched to ensure you’re getting a fair deal. If it doesn’t, it might be worth looking into other routes to sell. Another tip is to make sure any repairs are done prior to inspection and negotiating a deal as this could affect the value of your trade-in price.
3. You can sort your car finance before you negotiate.
EOFY car sales can move quickly. If you plan to buy before 30 June, organising your car finance early may help you set a clearer budget before comparing dealer offers. Look beyond the advertised purchase price. The real cost of buying a car can include:
Loan term
Upfront and ongoing fees
Balloon payment, if applicable
Early payout costs
Whether the loan suits personal or business use
Many car loans have a fixed interest rate. This means your repayments are set for the loan term, which can make it easier to plan around other household or business expenses.
A fixed-rate car loan may suit buyers who want repayment certainty. However, the interest rate is only one part of the loan. Fees, repayment flexibility, balloon payments and early payout costs can vary between lenders, so it is worth comparing the full loan structure before you apply.
EOFY can be a competitive time to buy, especially when dealers are clearing stock before 30 June.
Car loan pre-approval may help you understand what you could afford before you visit a dealership. However, pre-approval does not guarantee final approval. The lender will still need to assess your application, the vehicle and the final loan details. Getting pre-approval is helpful as itgives you a clearer price range and reduce the chance of making a rushed finance decision at the dealership.
Dealer finance can be convenient, but it may not always be the most suitable option for your circumstances. Before you commit, compare the loan repayments, fees, loan term, balloon payment and conditions against other car finance options.
This is especially important during EOFY, when advertised deals, trade-in offers and finance promotions can make it harder to compare the true cost of buying.
You might also be interested in: 6 ways to make the most of home loan pre-approval
4. You may be able to claim business car costs at tax time.
If you use your car for business, EOFY can be a useful time to check whether buying before 30 June could support your cash flow, finance needs and tax position.
For FY2025–26, small businesses with aggregated annual turnover of less than $10 million may be eligible for the $20,000 instant asset write-off. The asset must cost less than $20,000, be first used or installed ready for use between 1 July 2025 and 30 June 2026, and the business must use the simplified depreciation rules.
If you meet the rules, the instant asset write-off may allow an immediate deduction for the taxable-use portion of a vehicle. If your business is registered for GST, the threshold generally applies to the GST-exclusive cost.
The limit applies per asset, so a business may be able to claim more than one asset if each one falls below the threshold and meets the relevant criteria.
If the vehicle costs $20,000 or more, it generally cannot be claimed immediately under the instant asset write-off. If your business uses simplified depreciation, the taxable-use portion is usually allocated to the small business depreciation pool.
Eligible businesses can generally claim:
15% in the first income year the asset is used, or is installed and ready for use
30% each income year after that
The FY2025–26 car depreciation limit
The instant asset write-off is separate from the car depreciation limit. For FY2025–26, the ATO car limit is $69,674. This is the maximum vehicle value generally used to calculate depreciation for a car first used or leased in the 2025–26 income year, even if the purchase price is higher.
For GST-registered businesses, the maximum GST credit you can generally claim on a car above the car limit is $6,334, which is one-eleventh of $69,674.
If the car is used for both business and private purposes, you need records to support the percentage you claim. A logbook is commonly used to substantiate business use.
You may also need to keep:
Purchase invoices
Finance documents
GST records
Registration and insurance records
Servicing and running cost receipts
Logbook or travel records
Tax rules can change, and eligibility depends on your business structure, turnover, vehicle use and record keeping. Before buying a car for business use, speak with an accountant or tax adviser about what you could claim and how the timing of your purchase may affect your tax position.
5. Brokers can find the right deal for you.
If you’re looking to buy a car at the end of the financial year, an Aussie Broker can help you find a fair deal for finance.
When speaking to dealerships, it can help to be wary of the finance solutions they offer. They may not be interested in negotiating the best deal for you and could be limited in what they can offer if they only have access to one financier.
Some dealerships will quote fees and interest base rates instead of the effective rate. Working with an Aussie Broker can take the hassle and complexity out of the process and help you find the right asset finance deal.
Compare the full EOFY car cost before you buy
EOFY can be a useful time to compare car deals, but the best option is not always the one with the biggest advertised discount. The final cost can depend on the drive-away price, trade-in value, finance structure, state-based on-road costs and any tax treatment that may apply to you.
EVs and novated leases can add further complexity. Salary packaging, FBT exemptions, luxury car tax thresholds and state concessions can change, so check the latest rules before signing.
If you are buying a vehicle for business use, speak with an accountant or registered tax adviser before relying on deductions, depreciation or GST treatment. Eligibility depends on your business structure, vehicle use and supporting records.
An Aussie Broker can help you compare car finance options, understand repayments and review the loan structure before you head to the dealership.
