How new EV safety rules affect novated leasing

For business owners and employees with novated leases, these new vehicle safety requirements highlight the importance of making informed choices when selecting your next vehicle.

For business owners, this change is an opportunity to review fleet and employee vehicle policies to ensure upcoming leases align with the latest compliance standards. As part of your novated leasing program:

• Check compliance early: When adding or replacing vehicles, confirm that any new electric or hybrid models include the required Acoustic Vehicle Alerting System (AVAS) under ADR 113/00.

• Plan for future availability: Some models already include AVAS, but from 1 November 2025, compliance will be mandatory for all new models. Staying ahead will prevent delays or limited options when sourcing vehicles.

• Promote awareness: Communicating these updates to staff through your novated leasing program helps ensure drivers understand any differences in vehicle operation, such as new low-speed sounds for pedestrian safety.

• Demonstrate corporate responsibility: Adopting compliant, safety-focused vehicles reflects a commitment to the wellbeing of employees and the broader community.

For novated lease drivers, understanding this change helps you make confident vehicle decisions. Choosing a compliant model not only ensures your car meets national safety standards but also provides peace of mind knowing you’re driving a vehicle designed with pedestrian safety in mind.

Whether you’re a business implementing novated leasing or an individual driver considering a new EV or hybrid, Prosperity Smart Drive can help you navigate these regulatory changes — ensuring your next lease delivers on safety, compliance, and value.