New data shows transport emissions in Australia are falling, and the nation’s peak novated leasing body said the Electric Car Discount is a major driver.
Quarterly data published today by the Department of Climate Change and Energy shows transport emissions dropped 0.6 per cent over the year to December 2025.
This marks the second consecutive fall in transport emissions following the year to September 2025 – the first decline in transport emissions since COVID – and the strongest sign yet that EV uptake is beginning to permanently reduce transport pollution.
National Automotive Leasing and Salary Packaging Association (NALSPA) CEO Rohan Martin said the results were cause for optimism.
“The Government's data shows transport emissions are falling as more Australians reach for the electric charger instead of the fuel bowser by switching to EVs. The Electric Car Discount is helping make that transition possible,” Martin said.
“This is a policy that continues to put EVs within reach of everyday Australians - nurses, teachers, and tradies who wouldn't otherwise be able to afford one. The outer suburbs are booming with cleaner, cheaper-to-run cars thanks to the Electric Car Discount.
“This is exactly what the Electric Car Discount was designed to achieve – more EVs on the road, lower transport emissions and lower household running costs, and it’s helping stabilise the grid.
"The Albanese Government should take this emissions data as further validation and proof that the EV Discount is working as intended. Australia still has a long way to go to reach its emissions targets, but we’d be further behind without policies including the Electric Car Discount - our nation’s only demand-side incentive for EVs.”
The figures come as the Minister for Climate Change and Energy announces an expansion of vehicle-to-grid and smart charging pilot programs, helping more Australians use their EVs to power their homes, cut bills and support the grid.
"It's great to see the Albanese Government looking at ways to further support EV uptake and unlock the full potential of EVs, including connecting them to the grid," Martin said.
"As the Government invests in vehicle-to-grid technology, the next logical step is to allow Australians to include EV home chargers in their novated leases. That would remove a significant barrier to EV adoption and help more households participate in the clean energy transition."