PHEV buyers wanting tax benefits of an electrified vehicle have only until April 1 to qualify before the discount ends.

The deadline marks the end of the FBT exemption for plug-in hybrid electric vehicles (PHEVs) with the curtain falling just as PHEVs enjoy a popularity rise.

PHEV numbers are up fourfold in February 2025 compared with the same month in 2024 (4871 units in 2025, 1092 in the same month in 2024), and numbers for the year-to-date have tripled (6779 in 2025, 2104 in 2024).

The monthly record represents a 346.1 per cent increase compared to February 2024, contributing to a 222.2 per cent overall rise in PHEV sales for 2025.

But the good news comes to an end as the FBT exemption for PHEVs is due to end on April 1, 2025.

Rohan Martin

National Automotive Leasing and Salary Packaging Association (NALSPA) chief executive Rohan Martin said the large uptake in PHEVs demonstrates their widespread appeal and highlights their crucial role as a stepping stone toward fully electric vehicles.

“The uptake of plug-in hybrid vehicles is currently exponential,” Mr Martin said.

“This reveals two key insights: firstly, Australians who prefer SUVs and larger vehicles are eagerly embracing lower-emission alternatives, which are predominantly available today as PHEVs. 

“Secondly, when you get the policy levers right as we’ve seen through the FBT exemption and other measures, it influences behaviours and drives buyer demand.

“Australians love their larger vehicles but they are currently harder to fully electrify. 

“PHEVs are gradually providing Australians with a range of larger lower emissions vehicle types, including the new and very popular BYD Shark PHEV ute which contributed more than 2000 PHEV units to the February result.”The BYD Shark sold 2026 units in February, the biggest selling PHEV which claimed almost half the month’s total PHEV sales. BYD’s PHEV sales were 3319 units (Shark 6 and Sealion 6) which was 68 per cent of all PHEV sales made in February.

Mr Martin said that during a cost-of-living crisis, PHEVs – with the support of the FBT exemption – were allowing Australian motorists to save on the upfront cost of a lower-emissions car while also significantly saving money on running costs. 

“Research that we commissioned late last year shows PHEV drivers predominately use their cars like a pure EV, with most plugging in at least twice a week and using electric power only for two-thirds of their trip,” he said.

“The FBT exemption together with greater PHEV model availability from manufacturers, have played a major role in stimulating PHEV demand. 

“Although demand patterns for PHEVs may shift once the exemption ends on April 1, 2025, we anticipate good uptake of both PHEVs and conventional hybrids to continue through novated leasing arrangements as motorists look for much needed cost-of-living savings. 

“This outlook is also bolstered by forthcoming low-emission model releases and motorists’ focus on reducing their emissions.

“Importantly, the New Vehicle Efficiency Standard, whilst supporting the supply of more fuel-efficient petrol and diesel vehicles into Australia, is also aimed at expanding the range of available low-emission options, with manufacturers projected to respond by bringing more of these vehicle types to Australia to meet growing demand.

“Motorists hoping to benefit from the PHEV FBT exemption may still find select models available for immediate delivery, but they’ll need to act lightning fast to ensure vehicle delivery before April 1, 2025 to qualify.”