Electric vehicles have crossed a critical threshold in Australia. There are now over 200,000 EVs on Australian roads, the charging network has expanded dramatically, and the federal FBT exemption has made EVs a genuine financial no-brainer for many employees with salary packaging. But for private buyers paying retail, the maths is more nuanced. This is a full 5-year cost comparison between a Tesla Model 3 and a Toyota Camry — two of Australia's best-selling cars in their respective segments — using 2026 pricing and real running costs.
The Candidates
We're comparing:
- Tesla Model 3 Standard Range RWD: $58,900 drive-away (2026)
- Toyota Camry Ascent Hybrid: $37,990 drive-away (2026)
Yes, the Camry is considerably cheaper to buy. The question is whether the EV's running cost savings close that gap over 5 years. Use our EV vs. Petrol Calculator to model your own vehicle comparison.
Annual Running Costs: EV vs. Petrol (2026 Estimates)
| Cost Category | Tesla Model 3 (EV) | Toyota Camry Hybrid | Notes |
|---|---|---|---|
| Fuel / charging | $800–$1,200 | $2,400–$3,000 | EV: mostly home charging at ~30c/kWh; Camry: 5.2L/100km at $2.00/L, 15,000km/yr |
| Registration (NSW avg) | $380 | $380 | Similar across segments |
| Insurance (estimate) | $2,100 | $1,600 | EVs attract slightly higher premiums due to repair costs |
| Servicing | $350–$500 | $600–$900 | EVs have no oil changes, fewer brake services (regen braking) |
| Tyres (annualised) | $600 | $450 | EVs heavier, slightly faster tyre wear |
| Total annual running cost | $4,230–$4,880 | $5,430–$6,330 |
The EV saves roughly $1,200–$1,450/year in running costs versus the hybrid Camry. Over 5 years, that's $6,000–$7,250 in savings — significant, but not enough on its own to close the $20,910 purchase price gap.
5-Year Total Cost of Ownership
Let's add depreciation — the single biggest cost of car ownership — into the calculation.
- Tesla Model 3: Estimated 5-year residual value ~$28,000–$32,000 (EV depreciation has stabilised after volatile early years)
- Toyota Camry Hybrid: Estimated 5-year residual value ~$18,000–$22,000 (strong resale for hybrids)
Tesla 5-year depreciation: $58,900 − $30,000 = $28,900
Camry 5-year depreciation: $37,990 − $20,000 = $17,990
Total 5-year cost (depreciation + running costs, midpoints):
- Tesla Model 3: $28,900 + $22,550 = $51,450
- Toyota Camry Hybrid: $17,990 + $28,800 = $46,790
On pure private-buyer maths at 15,000km/year, the Camry hybrid is still cheaper over 5 years by roughly $4,660. The EV doesn't quite break even — yet.
Popular EV Models Available in Australia (2026)
| Model | Drive-Away Price | Range (WLTP) | Charging Speed (DC fast) | Key Feature |
|---|---|---|---|---|
| Tesla Model 3 SR RWD | $58,900 | 513 km | 170 kW | Supercharger network |
| BYD Seal | $54,990 | 570 km | 150 kW | Best value in segment |
| Polestar 2 Standard | $62,900 | 518 km | 130 kW | Google built-in |
| Hyundai IONIQ 6 | $67,900 | 614 km | 220 kW (ultra-fast) | Fastest charging in class |
| MG4 Excite 51 | $40,990 | 350 km | 76 kW | Most affordable EV in AU |
| Kia EV6 | $72,590 | 528 km | 233 kW | 800V architecture |
The FBT Exemption: When EVs Become a No-Brainer
If you're an employee with salary packaging available (many private sector and most government employers offer this), the calculus changes completely. Under the Electric Car Discount Act 2022, EVs under the luxury car tax threshold ($91,387 in 2025–26) are exempt from Fringe Benefits Tax when provided through a novated lease.
A salaried employee on $120,000 can novated-lease a Tesla Model 3 for approximately $850–$950/month using pre-tax salary — effectively reducing the after-tax cost by 32.5–37%, depending on their marginal rate. Over 5 years, this saves $16,000–$22,000 compared to buying the same car outright with after-tax money. This makes the EV the overwhelmingly better financial choice for eligible employees.
Home Charging Costs and Setup
Most EV owners charge primarily at home overnight. A standard 7.4kW home charger (installed cost: $1,200–$2,000) will fully charge a Tesla Model 3 in 6–8 hours. At a typical Australian off-peak rate of 20–30c/kWh, charging a 60kWh battery costs $12–$18 — enough for approximately 400–500km of range. This compares to $40–$55 to fill a 50-litre petrol tank at $2.00/litre. For high-mileage drivers (25,000km+/year), the fuel savings alone can justify the EV premium within 4–5 years.
Verdict: Who Should Buy an EV in 2026?
The EV makes strong financial sense if: you have access to salary packaging, you drive more than 20,000km/year, you can charge at home, and you're comparing against a similarly priced ICE vehicle rather than a budget hybrid. For private buyers on average kilometres who prioritise purchase price, a hybrid like the Camry remains the more economical choice in the short term. But as EV prices continue to fall and battery tech improves, the crossover point is getting closer every year.