Pain at the pump vs. The EV pivot

​Is now the time to make the switch? 

​With fuel prices hitting record highs and the automotive market shifting faster than ever, navigating the transition to an electric vehicle (EV) is no longer just an environmental choice; it could be a very calculated financial move. 

As a finance broker, I’m seeing a surge in enquiries from both small business owners and individuals asking if the numbers actually stack up in 2026?  

Here is the reality of the current market and how you can finance the switch effectively. 

Is the temporary relief enough? 

​From April 1, 2026, the Federal Government halved the fuel excise for three months to provide 26 cents per litre of relief. While that’s a welcome break at the pump, where we've seen unleaded climb toward 258c/L, it’s a temporary band-aid. 

The underlying trend points to petrol and diesel volatility being the new normal, while EV sales in Australia hit a record 12.2% market share recently. For many, the excise cut isn't a reason to stay with petrol, it's their final signal to plan an exit strategy. 

Small business owners and the June 30 countdown 

​If you operate a small business (turnover under $10 million), the $20,000 Instant Asset Write-Off has been extended until June 30, 2026. 

Your opportunity is the immediate deduction of the cost of eligible assets, including EVs or charging infrastructure, of up to $20,000 per asset. 

The vehicle must be "first used or installed ready for use" by June 30. With current long lead times for popular models, the window to secure a vehicle and claim it this financial year is closing fast. 

There are FBT benefits as well, with pure electric vehicles under the $91,387 Luxury Car Tax threshold remaining exempt from FBT. This is potentially a big saving that can lower your business’ tax liability significantly.

For individuals considering a new loan or loan extension? 

​Many lenders now offer specialised Green Loans with interest rates currently sitting around 5.99% fixed. These are often lower than standard car loans because the vehicle acts as high-quality collateral. 

This works if you want to keep your car finance separate from your home and want a fixed repayment schedule. 

However, if you have equity in your home, extending your existing mortgage to cover the EV purchase can be tempting because home loan rates are often lower than unsecured personal loans. The catch is that if you don't increase your repayments to pay off the car portion of the loan within 5–7 years, you could end up paying more over the life of the loan.  

Is it time to take the plunge? 

The data shows that petrol vehicle sales are declining while hybrids and EVs are filling the gap. Whether you're looking at a sedan or commercial vehicle, the combination of high fuel costs and aggressive tax incentives makes the financial case for an EV stronger than ever in 2026.  

Talk to us today about your options.