For years, the "EV vs. Diesel" debate for commercial fleets was theoretical. The range wasn't there, charging was a nightmare, and viable work utes didn't exist.
Welcome to 2026. The market has matured. We now have electric utes capable of hauling 3.5 tonnes, and the charging network is robust. But the biggest driver for business owners isn't the technology—it’s the tax landscape.
Crucial Update: The PHEV Tax Trap
It is vital to understand the tax rules in 2026. The government's Fringe Benefits Tax (FBT) exemption for Plug-in Hybrid Electric Vehicles (PHEVs) ended on April 1, 2025.
If you buy a Hybrid today, you pay full FBT. However, full Battery Electric Vehicles (BEVs) are still FBT-exempt. This is a massive distinction. Providing an employee with a $70,000 electric ute as a salary package perk is incredibly tax-efficient compared to a diesel equivalent, which attracts full FBT liability.
Total Cost of Ownership (TCO)
The sticker price of an EV is higher, but finance looks at the whole picture.
- Fuel: Electricity costs per kilometre are a fraction of diesel.
- Maintenance: EVs have no transmission, no oil changes, and regenerative braking saves brake pads. Servicing downtime is cut by up to 40%.
- Resale: Diesel vehicle values are beginning to soften as metro delivery contracts increasingly mandate "zero-emission" vehicles.
Financing the Infrastructure
You can't just buy the trucks; you need the chargers. Geared Finance can bundle the cost of installing commercial fast-chargers at your depot into your fleet finance package, spreading the infrastructure cost over the life of the vehicles.
Don't get caught by the Hybrid tax trap. Contact Geared Finance to run a full Total Cost of Ownership comparison on your fleet today.
