On 29 June 2022, the Government announced a proposal to:
- remove fringe benefits tax (FBT) on eligible electric cars, and
- include the value of these exempt car fringe benefits in the calculation of an employee's reportable fringe benefits amount.
This measure is now law.
From 1 July 2022, employers will not pay FBT on benefits provided for eligible electric cars and associated car expenses.
The Government will complete a review into this exemption by mid-2027 to consider electric car take-up. We will provide an update when this review begins.
For more information, visit Electric cars exemption.
From 1 July 2022 employers will not pay FBT on benefits provided for eligible electric cars and associated car expenses.