Kia · SUV

Kia EV3 novated lease and the FBT cliff

908days left to commit,
under the draft
Last day: 31 March 2029

Treasury draft · not law yet

Electric carVariant

Car’s value for FBT ($, incl. GST)Maker's list price before on-road costs. Add dealer delivery and any options you choose.

Salary ($ a year)Before tax and packaging, from $45,000.Lease term

How the estimate works

Without a concession, FBT’s statutory formula makes 20% of the car’s value taxable each year.
Novated leases clear that by moving the same amount from pre-tax to after-tax pay.
The saving is the 2026–27 income tax and Medicare levy you avoid on that amount.

Tax the exemption saves

$3,050 a year

Full exemption to 31 Mar 2029 under the draft. Estimate only. General information, not tax advice.

Breakdown

Under $75,000Kia EV3 Air Standard Range

Under the draft, the full exemption lasts for commitments until 31 March 2029.

$3,050 a year

Estimated tax the exemption saves you compared with a car that gets no FBT concession. Commit from 1 April 2029 and that drops to $760 a year: $6,850 less over a 3-year lease.

908 days left to commit by 31 March 2029

$47,600

$25,000$75,000$91,661$125,000+

Up to $75,000: full exemption for commitments until 31 Mar 2029$75,001 to $91,661: full exemption only if you commit by 31 Mar 2027Over $91,661: no FBT concession

Estimated tax effect by when you commit to the lease

If you commit	DiscountFBT discount	Saved a yearTax saved a year
By 31 Mar 2027	100%	$3,050
Apr 2027 – Mar 2029	100%	$3,050
From Apr 2029	25%	$760

Reportable fringe benefits: about $17,960 a year would appear on your income statement if you commit by 31 March 2027. It isn’t taxed, but income tests such as HELP repayments and the Medicare levy surcharge count it.

Estimate only. General information, not tax advice. It uses 2026–27 tax rates and the FBT statutory formula, and assumes you pay an after-tax contribution to clear any FBT. The rules for commitments from 1 April 2027 are a Treasury exposure draft, not law, and may change. Confirm your numbers with your employer, your novated lease provider or a registered tax agent.

Updated 3 Oct 2026 · every figure links to its source · Some links are referral links; that never changes the order.

Every Kia EV3 is under $75,000: full FBT exemption on a novated lease committed to by 31 March 2029, under the Treasury draft.

$25,000$75,000$91,661$125,000+

Up to $75,000: full exemption for commitments until 31 Mar 2029$75,001 to $91,661: full exemption only if you commit by 31 Mar 2027Over $91,661: no FBT concession

What to know about the Kia EV3

Kia's small SUV comes with two batteries, and the bigger one transforms it: Kia quotes 604 km for the Air Long Range at $53,315 before on-road costs, against 436 km for the Air Standard Range at $47,600. Even the GT-Line, at $63,950, stays about eleven thousand dollars short of $75,000, so no EV3 drifts into the 2027 band however it is optioned.

The Earth and GT-Line share a quoted 563 km and cost $58,600 and $63,950. Each step up raises the yearly tax saving a little, since a dearer car has a bigger taxable value for the exemption to cancel, but the extra saving never covers the extra price. On value alone the Air Long Range is the sweet spot.

In October 2026 Kia was showing drive-away prices below these retail figures, which suggests offers worth asking about; any discount also trims the reportable fringe benefits figure on your income statement.

Kia EV3 variants against the lines

Kia EV3 at a $100,000 salary

Variant	Maker's price	Where it sits	By 31 Mar 2027	Apr 2027 – Mar 2029	From Apr 2029	Price source
Air Standard Range	$47,600before on-roads	Under $75,000	$3,050	$3,050	$760	Kia, 3 Oct 2026
Air Long Range	$53,315before on-roads	Under $75,000	$3,410	$3,410	$850	Kia, 3 Oct 2026
Earth	$58,600before on-roads	Under $75,000	$3,750	$3,750	$940	Kia, 3 Oct 2026
GT-Line	$63,950before on-roads	Under $75,000	$4,090	$4,090	$1,020	Kia, 3 Oct 2026

Estimated income tax and Medicare levy saved each year compared with a car that gets no FBT concession. “Close” means within $3,000 of a line, where dealer delivery, options or on-road costs can move the car across it.

Tax saved a year on the Air Standard Range, by salary

Air Standard Range, $47,600

Salary	By 31 Mar 2027	Apr 2027 – Mar 2029	From Apr 2029	Missing the deadline, 3-year lease
$60,000	$3,190	$3,190	$800	$7,180
$90,000	$3,050	$3,050	$760	$6,850
$120,000	$3,050	$3,050	$760	$6,850
$160,000	$3,710	$3,710	$930	$8,350
$220,000	$4,470	$4,470	$1,120	$10,070

The last column is the extra tax over a three-year lease from committing just after 31 March 2029 instead of just before. Salaries between $45,000 and $66,667 can show a slightly bigger figure than higher ones, because the low income tax offset phases out across that range.

About these prices

3,977 Kia EV3s were sold in Australia from January to August 2026. (CarExpert Sales Atlas, VFACTS and EV Council data, checked 3 October 2026)
Kia's recommended retail price from its build page; the drive-away price it displayed in October 2026 reflected an offer. (Kia Australia, checked 3 October 2026)
Prices are the maker’s own: before on-road costs. The value FBT uses includes dealer delivery and options but not registration, stamp duty or CTP.

Getting a quote for a Kia EV3

Check that your employer offers novated leasing, then ask a provider to quote the exact car, with delivery and options, and to confirm the date your commitment becomes binding. These providers offer novated leases; we list them alphabetically and don’t rank them.

Carbar (opens in a new tab) Referral link: we may earn a commission. It never changes the order.
Maxxia (opens in a new tab) Referral link: we may earn a commission. It never changes the order.
Oly (opens in a new tab) Referral link: we may earn a commission. It never changes the order.
RemServ (opens in a new tab) Referral link: we may earn a commission. It never changes the order.
Smart (opens in a new tab) Referral link: we may earn a commission. It never changes the order.

We compare only the 5 providers listed here, not the whole market.