Behind the wheel: Amelia and partner/passenger Jack  

Ready to tackle another journey, I was lucky enough to jump into the Mitsubishi Outlander PHEV GSR. This top-of-the-line model, with all the bells and whistles, made for a great ride as we tackled the 4 ½ hour drive from Melbourne to Coleambally.

Prior to 31 March 2025, PHEVs (Plug-In Hybrid Vehicle) qualified for the EV exemption, meaning you could novate it for all pre-tax dollars, drastically increasing the savings. Unfortunately, the government has changed the rules, and PHEVs no longer qualify for the exemption. However, while that benefit has been removed, I'm here to show why a PHEV may still be a fantastic choice for you. With the standard novated leasing tax savings, plus the benefits a PHEV can bring to your lifestyle, it’s a great option if you're not completely ready to jump into an all-electric vehicle (also known as a BEV - Battery Electric Vehicle).

For this adventure, we’re off to visit our farming friends in Coleambally, NSW. We hit the road and took off in EV mode. While the 84km range is optimal with braking opportunities, we hit the freeway, meaning there’s less chance to utilise regenerative braking. In reality, our EV range got us about 65km before it ran out. This was expected, but that's why we have the petrol tank to carry us the rest of the way.

As it was our first time in a PHEV, we took the chance to try out all the gadgets and buttons. We discovered the EV function that allows you to charge the battery while running on petrol, so we gave it a go.

Being on a long journey with long country roads, the Adaptive Cruise Control (ACC) was very handy. It’s part of the Mitsubishi MI-PILOT range, which also includes handy features such as Lane Keep Assist (LKA), Speed Limit Assist and Traffic Sign Recognition (TSR). All of this is projected in the dash, with key features and speed also projected onto the front window through their heads-up display.

The drive as a whole was very smooth and it easily tackled the varying terrain, as we tested out the different drive modes, from Gravel mode to Power mode for extra acceleration.

Plug-in Hybrid EV: Enjoy the best of both worlds by plugging in and charging your car to run as an EV, or filling up the petrol tank to run as a combustion engine.

Flexibility: Ideal for those not ready to fully commit to a battery electric vehicle (BEV). Dip your toes into EV benefits while having petrol as a backup for longer road trips.

Charging options: Charge at home with a standard outlet, a home or public charging device (EVSE), or quickly at public stations.

84km EV range: Optimal for short trips and daily commutes.

1500W power supply: Two common 240V household outlets in the boot allow you to power devices and portable appliances on your adventures.

Massage: Enjoy luxury with massage seats that offer three options and adjustable intensity and speed. Perfect for a relaxing drive.

Heating: Keep warm during cooler months with heated seats in the front and second row.

Parking assistance: A 360-degree view and left-side parking view make parking easier without adjusting mirror angles.

Driving flexibility: Choose to drive only in EV mode, save the battery, or utilise petrol. You can also charge the battery while driving on petrol. In addition to the standard drive modes available including Normal, Eco, Tarmac, Gravel, Snow, Mud and Power, the Outlander PHEV also features its own drive modes such as:

• EV Mode: Operates purely on electric power and is perfect for low to medium speeds in urban areas
• Series hybrid mode: the petrol engine can be used to provide additional power when accelerating or climbing hills
• Parallel hybrid mode: The petrol engine and electric motors work together – suitable for high-speed driving and overtaking vehicles on the highway
• Battery SAVE mode: Saves the remaining power in the battery while driving
• Battery CHARGE mode: Replenishes the drive battery's power while you're driving

The Outlander comes in both PHEV and ICE models and as one of the top selling cars in Australia, the range means there’s a model suitable for everyone. The range offers both 5-seat and 7-seat configurations catering to different lifestyle needs.

Even after the electric exemption ends, choosing a Plug-in Hybrid Electric Vehicle (PHEV) remains a smart choice, offering significant tax benefits, convenience and simplified budgeting. PHEVs offer excellent fuel efficiency, significantly reducing fuel costs by allowing drivers to use electric power for short trips and having the petrol engine as a backup for longer trips, eliminating range anxiety. This dual capability ensures lower overall fuel consumption and emissions compared to traditional internal combustion engine (ICE) vehicles. Additionally, PHEVs may often have lower maintenance costs since their electric components reduce wear on the engine and brakes.

When it comes to novated leasing, the benefits are substantial. By salary sacrificing a PHEV, you can still enjoy tax savings on your lease payments and running costs, as these are deducted from your pre-tax income. This not only lowers your taxable income, but also helps you manage your car expenses more efficiently, making PHEVs a cost-effective and environmentally friendly option even without the electric exemption.