Recently, the Australian federal government passed the Treasury Laws Amendment (Electric Car Discount Bill).
The Amendment allows for up to $2000 off the purchase price of battery electric and plug-in hybrid vehicles.
The Bill promotes further financial support in EV adoption by granting fringe benefits tax (FBT) exemptions for fleets and novated leases. The discounts and benefits outlined apply to electric vehicles (EV) and plug-in hybrid vehicles (PHEV) that retail below the luxury car tax (LCT) threshold of $84,916 and are offered in addition to other state and territory incentives.
Positive Industry Feedback
The FCAI has welcomed the Bill’s passing, believing that financial incentives are a vital component of the policy framework that’s needed to boost the uptake of zero and low emission vehicles in Australia.
“Car makers support financial incentives as part of a wider range of policy measures. This is an important step that complements the Government’s plan to develop an electric vehicle strategy and the current review into fuel quality. Ideally the new year will see action in the area of a Federally mandated emissions target for the light vehicle sector,” FCAI Chief Executive, Tony Weber said.
“This is a positive move, but more action is required. We look forward to engaging with Government to achieve strong, practical, and challenging policy settings which will support Australia’s goal of decarbonizing the light vehicle fleet.”
Limiting Support for Plug-In Hybrids
The Bill will also limit support for plug-in hybrids, prioritising full electric vehicles by-
- Sunsetting support for petrol-based plug-in hybrids on 1 April 2025 (in 2 years and 4 months’ time); and
- Prioritising zero-emission electric vehicles in the Australian government fleet procurement policy, by removing plug-in hybrid vehicles except in exceptional circumstances.
The Bill passed through the Senate with 31 votes against 24, following a deal which was struck between Labor, Greens and independent Senator David Pocock.
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