On 1 April 2026, Drive Electric wrote to the Hon Chris Bishop, Minister of Transport and Minister of Infrastructure, proposing two tax policy changes to accelerate electric vehicle uptake in the context of New Zealand’s energy security concerns.

• • Measure 1 – Full FBT Exemption: an amendment to the Income Tax Act 2007 exempting eligible battery electric and plug-in hybrid vehicles, valued below NZD $60,000, from Fringe Benefit Tax when provided by employers or accessed through salary packaging.

• • Measure 2 – Formalised Novated Lease Framework: a three-party salary sacrifice arrangement between employee, employer and finance provider, modelled on Australia’s Electric Car Discount.

Drive Electric’s Submission

Drive Electric recommended both measures take effect from 1 July 2026 or sooner, pre-announced in Budget 2026. The proposal points to Australia’s experience under its Electric Car Discount — EV market share growing from under 2% in 2022 to 12.1% by 2026, with more than 100,000 BEVs sold in 2025 alone — as evidence that targeted tax policy is one of the most cost-effective levers available to accelerate fleet electrification and reduce New Zealand’s exposure to volatile imported fuel costs.

Download the full Drive Electric letter to Minister Bishop.

Drive Electric regularly meets with and advises key political figures and decision-makers in the transport sector, submits advisory papers on e-mobility legislation, and contributes to government-led policy development groups — helping to shape Aotearoa’s transition to cleaner, smarter transport. Become a member, stay connected and be part of the journey.