The federal government has made electric vehicles more affordable after passing the Electric Car Discount Bill through parliament. The bill removes the 5% import tariff for zero- and low-emission vehicles that are beneath the Luxury Car Tax Threshold ($84,916).
The bill also provides a fringe benefits tax (FBT) exemption for eligible cars made available for employees by employers.This is how it looks:For a vehicle valued at about $50,000, it means a $9,000 benefit to an employer or a $4,700 benefit to an employee using a salary sacrificing arrangement, according to government calculations.
The government will apply the FBT exemption retrospectively to eligible vehicles first used on or after 1 July 2022.
Eligible plug‑in hybrid electric vehicles will also be FBT-exempt when provided under arrangements entered into before 1 April 2025.
“More Australians will be able to get behind the wheel of an electric car thanks to these changes, which will reduce up‑front and ongoing costs,”
Contact us today if you need a company or personal EV, we’ll make sure that every step of the process is as seamless as possible.
Got questions? Let’s chat.
Our team is here to provide expert guidance and tailored solutions that work for you. Reach out today and experience the Finestream Standard, finance, the way it should be.
