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Surge in Electric Vehicle Financing Reflects Australia's Shift Towards Cleaner Transport

Understanding the Factors Behind the $7.37 Billion EV Finance Boom in 2025

Surge in Electric Vehicle Financing Reflects Australia's Shift Towards Cleaner Transport?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In 2025, Australia witnessed a significant surge in electric and hybrid vehicle financing, reaching a total of $7.37 billion-a 20% increase from the previous year.
This growth indicates a substantial shift in consumer preferences towards cleaner transportation options.

According to the Australian Finance Industry Association (AFIA), nearly 130,000 Australians opted for electric or hybrid vehicles in 2025. This trend underscores the nation's commitment to reducing emissions, especially considering that the transport sector accounts for 22% of Australia's total emissions.

However, the momentum in EV adoption faces potential challenges. The proposed removal of the Fringe Benefits Tax (FBT) exemption, known as the Electric Car Discount, could deter prospective buyers. Recent polls suggest that 37% of Australians would be less inclined to purchase an EV if the exemption is revoked, and 47% still anticipate their next vehicle to be an internal combustion engine model.

To sustain the growth in EV adoption, it's crucial for policymakers to consider the impact of such tax changes on consumer behavior. Maintaining incentives like the FBT exemption could play a pivotal role in encouraging more Australians to transition to electric vehicles, thereby supporting the nation's environmental objectives.

Published:Sunday, 26th Apr 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Knowledgebase
Deed in Lieu of Foreclosure:
A deed instrument in which a borrower conveys all interest in a property to the lender to satisfy a loan that is in default and avoid foreclosure.