In a bid to aid the uptake of electric vehicles (EV’s) the Government has introduced the Treasury Laws Amendment (Electric Car Discount) Bill 2022 into Parliament.
It is expected to remove fringe benefits tax (FBT), making electric vehicles cheaper for those interested in EV’s.
The legislation will amend the Fringe Benefits Tax Assessment Act 1986 to exempt from FBT the use of eligible electric cars made available by employers to employees.
This FBT exemption will apply to battery electric cars, hydrogen fuel cell electric cars and plug‑in hybrid electric cars.
Electric vehicles which will be eligible for the exemption will have to have an initial retail price which falls below the luxury car threshold for fuel efficient cars ($84,916 for 2022‑23).
The exemption will remain in effect as an ongoing basis and reviewed after three years, assessing the success of EV uptake.
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