Australian prospective electric vehicle (EV) buyers have a fresh opportunity to reduce the upfront cost of popular BYD models, with the Chinese automaker rolling out a 5% discount on its list prices when purchased through an eligible novated lease. This offer, confirmed on September 14, 2026, is valid for orders placed by the end of September and delivered by the end of October 2026, directly targeting consumers looking to leverage federal Fringe Benefits Tax (FBT) exemptions.
The initiative applies to a range of BYD’s best-selling battery-electric vehicles, including the Atto 1, Atto 2, Dolphin, Seal, and Sealion 7, with potential savings reaching up to AUD$3,099 on higher-priced models. This move intensifies the competition in Australia’s rapidly expanding EV market, particularly as affordability remains a key driver for consumer adoption.
How the Novated Lease Discount Works
The 5% discount is applied to BYD’s Recommended Retail Price (RRP) before on-road costs, forming the basis for novated lease calculations. A novated lease is a three-way agreement between an employee, their employer, and a leasing company, allowing vehicle and running costs to be paid from the employee’s pre-tax salary. This reduces taxable income, leading to significant savings, particularly when combined with the federal FBT exemption for eligible zero-emission vehicles.
The federal FBT exemption, still a cornerstone of Australia’s EV incentives, applies to battery electric and hydrogen fuel cell vehicles valued below the Luxury Car Tax (LCT) threshold (currently AUD$91,661 for fuel-efficient vehicles). This policy has been instrumental in making EVs more accessible, effectively reducing the total cost of ownership over the lease term.
“The federal Fringe Benefits Tax exemption on eligible electric cars, still in place in 2026, is the biggest saving for many buyers, often worth far more than any state rebate ever was.”
For those considering an EV, the combination of the federal FBT exemption and BYD’s new 5% discount presents a compelling financial proposition. This is particularly relevant given the rising cost of living and the ongoing volatility of petrol prices, which continue to highlight the economic advantages of electric motoring. For a deeper dive into managing ongoing costs, explore our guide on Slash Your EV Home Charging Costs by 70% in Australia 2026: A Smart Guide.
Specific Savings Across BYD Models
The 5% discount translates to varying savings depending on the model and variant. Below is an overview of the estimated savings based on BYD’s current RRPs (excluding on-road costs):
| Model | Starting RRP (AUD) | Estimated 5% Discount (AUD) |
|---|---|---|
| BYD Atto 1 Essential | $23,990 | $1,199.50 |
| BYD Atto 1 Premium | $27,990 | $1,399.50 |
| BYD Atto 2 Dynamic | $31,990 | $1,599.50 |
| BYD Atto 2 Premium | $35,990 | $1,799.50 |
| BYD Dolphin Essential | $29,990 | $1,499.50 |
| BYD Dolphin Premium | $36,990 | $1,849.50 |
| BYD Seal Dynamic | $52,990 | $2,649.50 |
| BYD Seal Premium | $61,990 | $3,099.50 |
| BYD Sealion 7 Premium | $54,990 | $2,749.50 |
Note: These figures are based on the reported 5% discount applied to the RRP before on-road costs and are estimates. Actual savings may vary based on individual novated lease agreements and final vehicle pricing.
This offer is exclusively for eligible novated lease clients and must be processed through an approved fleet management organisation. It does not extend to fleet customers, demonstration vehicles, or other promotional offers.
Impact on the Australian EV Market
BYD’s aggressive pricing strategy, often spearheaded by Chinese manufacturers, continues to reshape the Australian EV landscape. Brands like BYD, Geely, and MG are not only competing on sticker price but are increasingly matching legacy automakers on technology, range, and features. This fierce competition is directly benefiting Australian consumers by expanding choice and driving down prices across various segments.
The focus on novated leases also highlights a shift in how Australians are accessing EVs, moving beyond traditional upfront purchase incentives towards more integrated financial solutions that leverage tax benefits. This aligns with the broader trend of seeking value and long-term savings in vehicle ownership. Beyond the purchase, optimising your EV’s role in your home energy ecosystem can yield further benefits; read more about this in Unlock $2,000+ Annual Savings: Your 2026 Guide to Using Your EV as a Home Battery (V2H/V2G).
As the EV market matures, such targeted discounts and financing structures are expected to become more common, providing ongoing opportunities for Australians to transition to electric motoring more affordably. This current BYD offer provides a timely incentive for those considering an EV before the end of September 2026.
The Evolving Landscape of EV Incentives
While direct state-based purchase rebates have largely phased out across Australia, federal incentives like the FBT exemption remain a powerful tool for reducing EV costs. Victoria, for example, has minimal remaining purchase incentives, with the focus shifting to broader regulatory changes for charging infrastructure. In contrast, the ACT still offers low-interest loans for EVs and charging infrastructure, while the Northern Territory provides free registration until June 30, 2027.
These varied incentives underscore the importance of understanding the current landscape when considering an EV purchase. The BYD novated lease discount, available nationwide through the federal FBT exemption, offers a significant and immediate financial benefit that bypasses state-specific variations, making it a broadly appealing proposition for buyers across Australia this month.