PHEV/ FBT exemption. I am still entitled to this exemption?

 Author: NikkiATO(Community Moderator)Community Moderator

5 Nov 2025

Hi @jamacerden,

You can continue to apply the FBT exemption for a PHEV if both of the following conditions are met:

• the vehicle was used or available for private use before 1 April 2025, and that use was exempt
• you have a financially binding commitment to continue providing the use or availability of the vehicle for private purposes on and after 1 April 2025.

If your novated lease was paused or renegotiated during leave, or if the financial commitment changed (e.g. you paid the financier directly), this may be considered a change to the original binding commitment, which could end the exemption.

Your situation involves a period of unpaid leave, direct payments to the financier and a recommencement of the novated lease, which isn’t clearly covered by a standard novated lease guidance. Because of this, we recommend reaching out to our Tailored technical assistance team to discuss your situation and confirm eligibility.

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