The short answer: Yes
The Kia EV3 is fully eligible for the Australian Government's Fringe Benefits Tax (FBT) exemption. Every variant of the EV3 launched in Australia qualifies — it's a full battery electric vehicle, it arrived after the 1 July 2022 eligibility date, and every variant is priced well under the $91,387 LCT threshold.
All Kia EV3 variants are FBT exempt. With pricing from $48,990 and up to 604km of range, the EV3 is one of the best-value FBT-exempt cars in Australia in 2026.
Kia EV3 variants and pricing
The EV3 launched in Australia in March 2025 with four variants. All are FBT eligible:
| Variant | Drive-Away Price | Range (WLTP) | FBT Eligible |
|---|---|---|---|
| Air Standard Range | $48,990 | 436km | ✓ Yes |
| Air Long Range | $55,990 | 604km | ✓ Yes |
| Earth Long Range | $61,990 | 563km | ✓ Yes |
| GT-Line Long Range | $68,490 | 563km | ✓ Yes |
Prices are indicative drive-away as at May 2026. Always confirm current pricing with your Kia dealer before entering a novated lease arrangement.
Why the Kia EV3 qualifies for FBT exemption
To qualify, a vehicle must meet three criteria set by the ATO:
1. It must be a BEV or FCEV. The EV3 is a full battery electric vehicle — no combustion engine, no plug-in hybrid. It passes.
2. First held and used after 1 July 2022. The EV3 arrived in Australia in March 2025 — well after the eligibility date. It passes.
3. First retail price must be under $91,387. The most expensive EV3 variant (GT-Line Long Range) is $68,490 — over $22,000 below the cap. All variants pass comfortably.
How much can you save on a Kia EV3 novated lease?
The FBT exemption is most powerful when combined with a novated lease, which lets you pay for the car and running costs from your pre-tax salary. Here's a rough guide to savings on the two most popular variants:
EV3 Air Long Range ($55,990) — most popular variant
On a $100,000 salary over a 5-year novated lease, you could save approximately $11,000–$14,000 compared to buying the same car with after-tax income and paying full FBT.
EV3 GT-Line Long Range ($68,490) — top spec
On a $120,000 salary over 5 years, estimated savings climb to $14,000–$18,000 — on top of the included running costs (rego, insurance, servicing, charging).
What's included in the novated lease?
Under the FBT exemption, the following costs can all be bundled into your pre-tax novated lease payments:
Lease repayments, registration, comprehensive insurance, scheduled servicing, tyres, roadside assistance, and home charging electricity costs (at the ATO's rate of 5.47 cents/km for 2025–26).
Is the Kia EV3 worth it?
The EV3 is genuinely compelling on paper. The Air Long Range variant at $55,990 offers 604km of WLTP range — more than most vehicles in this price bracket — and comes standard with Kia's latest infotainment, Level 2 autonomous driving features, and vehicle-to-load (V2L) capability.
For FBT purposes, the Air Long Range sits in a sweet spot: enough range to remove any anxiety, priced well under the cap, and with a strong projected residual value that keeps novated lease repayments competitive.
How does the FBT exemption scheme review affect the EV3?
The Australian Government announced a formal review of the Electric Car Discount in December 2025, with a final report expected by mid-2027. The scheme remains fully active as of May 2026 — no changes have been legislated.
If you enter a novated lease now, industry consensus is that existing arrangements entered under current rules are expected to be protected from any future changes — though this isn't guaranteed by legislation. Acting sooner reduces your exposure to any policy changes.
Bottom line
The Kia EV3 is one of the most compelling FBT-exempt vehicles available in Australia in 2026. Every variant qualifies, pricing is well under the LCT cap, and the range figures are class-leading at its price point. If you're considering a novated lease, the EV3 Air Long Range in particular represents exceptional value once the FBT exemption is factored in.