Which are the cheapest electric cars in Australia in 2026?

The cheapest electric cars in Australia in 2026 include the BYD Atto 1 (starting from $23,990 plus on-road costs), Geely EX2 (from $26,490 plus on-road costs), and BYD Dolphin Essential (from $33,792 drive-away).

Are there any EV rebates available in Australia in 2026?

Yes, the most significant is the Federal FBT Exemption for eligible EVs purchased via a novated lease. State-specific incentives vary, with some offering stamp duty exemptions (ACT, SA) or concessional registration (NSW, QLD), while direct purchase rebates have largely ended in most states.

How much does it cost to charge an electric car in Australia?

Charging costs vary, but can be as low as 8 cents per kWh when charging at home with solar and smart tariffs. Public fast charging is generally more expensive, but still significantly cheaper per kilometre than petrol.

Is the EV charging network sufficient in Australia for under $40,000 EVs?

For most daily driving, home charging is sufficient. Australia's public fast-charging network is expanding rapidly, with over 700 fast chargers, primarily concentrated in NSW and Victoria, making longer trips increasingly feasible though some remote gaps remain.

Best Electric Vehicles Under $40,000 in Australia 2026: Your Essential Buyer's Guide

For Australians seeking an affordable entry into electric vehicle (EV) ownership, 2026 marks a pivotal year. The market has matured significantly, with multiple reputable models now available for under $40,000. These aren’t stripped-back compliance cars; they offer practical range, modern features, and strong warranties, making EV ownership accessible to a broader segment of the population.

Leading the charge in this price bracket are models such as the BYD Atto 1, Geely EX2, BYD Dolphin, MG4 EV Urban, and GWM Ora 5. These vehicles are redefining what ‘entry-level’ means for EVs in Australia, offering compelling alternatives to traditional petrol cars in terms of both upfront cost and long-term running expenses. Chinese manufacturers, in particular, have driven this price accessibility, accounting for 58% of Australia’s EV market in the first half of 2026.

Top Electric Vehicles Under $40,000 in Australia 2026

The following table outlines the leading electric vehicles available for under $40,000 (or very close to it, before incentives) as of September 2026. Prices are indicative and may vary based on location, dealer, and specific options. We specify if the price is ‘before on-road costs’ (ORC) or ‘drive-away’ (inclusive of registration, stamp duty, and dealer delivery).

| Model | Variant | Indicative Price (AUD) | Battery (kWh) | WLTP Range (km) | Key Features & Notes The BYD Atto 1 Essential is Australia’s cheapest new EV, starting at $23,990 plus on-road costs. For a city-focused buyer, its 220km WLTP range from a 30kWh battery is sufficient given the average Australian drives under 40km daily. The Premium variant, at $27,990 plus on-road costs, offers a 43.2kWh battery and a more practical 310km WLTP range. Both include Vehicle-to-Load (V2L) capability and wireless CarPlay.

Geely EX2

The Geely EX2, a newer entrant, provides excellent value from $26,490 plus on-road costs for the Complete variant. It features a 35.3kWh battery, 60kW motor, and 252km WLTP range. The Inspire variant, priced at $30,990 plus on-road costs, boosts range to 345km with a 47.1kWh battery and an 85kW motor. Notably, the EX2 offers a generous 7-year unlimited kilometre warranty and includes a 70L ‘frunk’ (front trunk). Geely has also offered a free 7kW home charger with launch deals.

BYD Dolphin

The BYD Dolphin positions itself as a practical light hatchback. The Essential model starts from $33,792 drive-away, featuring a 44.9kWh Blade Battery, 70kW motor, and 340km WLTP range. It was recognised as Drive Car of the Year’s Best Urban Car Under $30K in 2026 for its blend of affordability and features. The Premium variant, offering a 60.5kWh battery, 150kW motor, and 427km WLTP range, can be found for approximately $36,890 drive-away, though some reports indicate prices closer to $41,000 drive-away. This model provides a strong balance of range and features for daily commuting and occasional longer trips.

MG4 EV Urban

The MG4 EV Urban Essence 43 starts from $31,990 drive-away. This hatchback comes with a 51kWh battery, a 110kW motor, and offers a WLTP range of 316km. The MG4 is praised for its dynamic driving experience and competitive pricing, making it a strong contender in the affordable EV segment.

GWM Ora 5

The GWM Ora 5 (also known as GWM Ora) is a stylish small SUV, with prices starting from $33,990 drive-away. While specific battery and range details for the entry-level 2026 model are less consistently reported across all sources at this exact price point, it generally offers a practical urban range and a distinctive design, often compared to premium compact cars.

MG ZS EV Excite

The MG ZS EV Excite Standard Range is available from $34,990 drive-away. This compact electric SUV features a 50.3kWh battery, a 130kW motor, and a WLTP range of 320km. It remains a popular choice for those seeking an affordable SUV form factor with a 7-year warranty. The ZS EV also qualifies for the Federal FBT exemption, enhancing its value for salary packaging.

Aion UT Premium

Launching in early 2026, the Aion UT Premium offers a compelling package from $31,990 drive-away, with an introductory pre-order price of $30,990 for the first 600 customers. This compact hatchback boasts a 60kWh battery, a 150kW motor, and an impressive 430km WLTP range. It’s noted for its larger cabin space compared to rivals.

Leapmotor B05 Style

The Leapmotor B05 Style enters the market at $35,990 drive-away, providing a 160kW motor and a 401km range. This model offers a strong performance-to-price ratio within the sub-$40,000 category.

Hyundai Inster

Expected to launch with an entry price around $35,990 drive-away, the Hyundai Inster is another new compact EV option. While specific detailed specifications for the entry-level variant are still emerging, its brand reputation and potential feature set make it a noteworthy contender in this segment.

Maximising Your Savings: EV Rebates and Incentives in 2026

While upfront EV prices are dropping, government incentives can further reduce the cost of ownership. It’s crucial to understand the state-by-state variations and federal schemes. For a comprehensive overview, refer to our guide: Australia’s 2026 Solar, Battery & EV Rebates: Unlock Up To $20,000+ in Savings.

The Federal Fringe Benefits Tax (FBT) Exemption is the most significant EV incentive in Australia, potentially saving employees $5,000 to $25,000+ on eligible EVs priced below the $91,661 luxury car tax threshold through a novated lease.

State-Specific Incentives (as of September 2026):

New South Wales: The $3,000 purchase rebate and original stamp duty concession have ended. However, concessional registration may still apply to some zero-emission vehicles.
Victoria: Purchase incentives have largely concluded, and the $100 annual registration discount ended on 1 January 2026. Reduced stamp duty still applies.
Queensland: The $6,000 rebate ended in September 2024. Lower registration and stamp duty rates continue to incentivise ZEV uptake.
South Australia: Offers a stamp duty exemption for eligible EVs.
Australian Capital Territory: Provides stamp duty exemptions and offers zero-interest loans of $2,000 to $15,000 for new or used EVs and charging infrastructure.
Western Australia: The $100 discount for ZEVs ceased on 1 January 2026, with no current state-level purchase incentives.
Northern Territory: A $1,000 rebate for EV home charger installation was available until June 30, 2026.

Always check current eligibility criteria and funding availability, as these programs can change rapidly.

The Real Cost of Owning an EV: Beyond the Sticker Price

The upfront price is only one part of the equation. Electric vehicles typically offer significant long-term savings compared to internal combustion engine (ICE) vehicles. Our detailed guide, Real Cost of Owning an EV in Australia 2026: Save Thousands Annually, delves deeper into these savings.

Key Cost Advantages:

Fuel/Energy: EV owners report reducing fuel costs by over 60%. With petrol prices often exceeding $2.00 per litre, charging an EV at home, especially with solar, can cost as little as 8 cents per kWh with smart tariffs, dramatically cutting per-kilometre costs. The ATO’s EV-charging claim rate increased to 5.47 cents per kilometre from April 1, 2026, allowing drivers to claim around $820 annually for 15,000km of driving.
Maintenance: EVs have fewer moving parts, no engine oil changes, and reduced brake wear, leading to significantly lower maintenance costs. 73% of EV owners spend less than $300 per year on maintenance.
Insurance: While insurance costs can vary, 95% of EV owners reported spending less than $2,000 per year on insurance in 2025.

Charging Your Affordable EV in Australia

Australia’s EV charging infrastructure continues to expand. The average Australian drives less than 40km daily, making home charging via a standard power point or a dedicated wall charger feasible for most. For those without solar, charging during off-peak hours can still be significantly cheaper than petrol. Refer to our guide on Charge Your EV for Under $5: Best Times in Australia 2026 with Solar & Smart Tariffs for optimising your charging costs.

For longer journeys, Australia’s public fast-charging network is growing, with major players like Tesla Superchargers, Chargefox, Evie Networks, AmpCharge (Ampol), BP Pulse, and Jolt. As of mid-2026, there are over 1,282 public chargers, with 703 being fast DC chargers (50kW or more). While the network is stronger in NSW and Victoria, remote routes like the Nullarbor are now serviceable, though significant gaps still exist in areas like the Northern Territory.

Bottom Line

In 2026, securing a new electric vehicle under $40,000 in Australia is not only possible but offers a range of compelling choices. Models like the BYD Atto 1, Geely EX2, and BYD Dolphin Essential provide excellent value, practical ranges, and modern features, making them ideal for urban commuters and small families. When considering your purchase, look beyond the sticker price to account for substantial running cost savings and available state and federal incentives, particularly the Federal FBT exemption if eligible. With falling prices and expanding infrastructure, the shift to electric mobility is more financially viable than ever for Australian consumers.