Major aggregator LMG has reported a 65% year-on-year increase in novated lease referrals, with its Asset Finance Exchange (AFX) playing a key role in driving broker growth since its launch in October.
The surge in referrals is being fuelled by strong demand for electric vehicles (EVs) and plug-in hybrids (PHEVs), driven by the federal government’s Fringe Benefits Tax (FBT) exemption for zero or low-emission vehicles and growing competition among EV manufacturers.
Jordan Mutton, General Manager of AFX, said the platform has made it easier than ever for mortgage brokers to tap into the novated lease market – an area many had previously struggled to access.
“The introduction of the FBT exemption opened the door for more Australians to consider EVs and PHEVs, and brokers are now well-placed to help clients take advantage of these savings,” Mr Mutton said.
“Through AFX, brokers can seamlessly refer clients for novated leases, expanding their services and growing their businesses without adding complexity.”
Industry data supports the upward trend with PHEV sales doubling in 2024, accounting for 23,162 of all new cars sold – BYD Sealion 6 was the highest selling PHEV with 6,198 vehicles sold. The upcoming 31 March 2025 end to the FBT exemption for PHEVs is also driving a final rush in sales.
Simon Southwell, CEO of Positive Salary Packaging, highlighted the shifting market dynamics:
“We’ve seen a broader range of EVs enter the Australian market, with more affordable options like BYD and MG EV boosting demand. While Tesla’s popularity dipped in 2024, the overall EV market has surged,” Mr Southwell said.
“As we approach the PHEV exemption deadline, we’re seeing a continued push in plug in hybrid sales and expect a rise in EV demand to follow in the latter stages in 2025, supported by the ongoing FBT exemption for zero-emission vehicles.”
With over 40 new EV models expected to hit Australian roads by the end of 2025, brokers are in a prime position to meet growing consumer interest.
AFX has not only helped brokers diversify their service offering but also capitalised on shifting consumer preferences, giving them an edge in an evolving market.
