Fringe Benefits Tax Assessment Act 1986
A car benefit is an exempt benefit in relation to a year of tax if: (a) the benefit is provided in the year of tax in respect of the employment of a current employee; and (b) the car is a zero or low emissions vehicle when the benefit is provided; and (c) no amount of luxury car tax (within the meaning of the A New Tax System (Luxury Car Tax) Act 1999 ) has become payable on a supply (within the meaning of that Act) or importation (within the meaning of that Act) of the car before the benefit is provided.
8A(2)
A zero or low emissions vehicle is: (a) a battery electric vehicle; or (b) a hydrogen fuel cell electric vehicle; or (c) a plug-in hybrid electric vehicle.
[
CCH Note:
S 8A(2) will be amended by No 86 of 2022, s 3 and Sch 2 items 1 and 2, by substituting
"
vehicle.
"
for
"
vehicle; or
"
in para (b) and repealing para (c), effective 1 April 2025. No 86 of 2022, s 3 and Sch 2 item 5 contains the following application provision:
5 Application of amendments
]
(1)
The amendments of the
Fringe Benefits Tax Assessment Act 1986
made by this Schedule apply to benefits provided on or after 1 April 2025.
(2)
Despite subitem (1), the amendments do not apply to the application or availability of a car at a particular time (the
relevant time
) on or after 1 April 2025 if:
(a)
the application or availability constitutes a car benefit because of subsection
7(1)
of the
Fringe Benefits Tax Assessment Act 1986
; and
(b)
before 1 April 2025, the employer, the employee, or an associate of the employer or of the employee, committed to the application or availability of the car, in respect of the employment of the employee by the employer, for a period that began before 1 April 2025 and includes the relevant time; and
(c)
at no time on or after 1 April 2025 and before or at the relevant time did the employer, the employee, or an associate of the employer or of the employee, commit to the application or availability of the car, in respect of the employment of the employee by the employer, for a period that includes the relevant time; and
(d)
before 1 April 2025 a car benefit relating to the car was provided; and
(e)
the car benefit referred to in paragraph (d) of this subitem was an exempt benefit in relation to a year of tax because of section
8A
(Exempt car benefits: zero or low emissions vehicles) of that Act.
8A(3)
A battery electric vehicle is a motor vehicle that: (a) uses only an electric motor for propulsion; and (b) is fitted with neither a fuel cell nor an internal combustion engine.
8A(4)
A hydrogen fuel cell electric vehicle is a motor vehicle that: (a) uses an electric motor for propulsion; and (b) is equipped with a fuel cell for converting hydrogen to electricity; and (c) is not fitted with an internal combustion engine.
8A(5)
A plug-in hybrid electric vehicle is a motor vehicle that: (a) uses an electric motor for propulsion; and (b) takes and stores energy from an external source of electricity; and (c) is fitted with an internal combustion engine for either or both of the following:
(i) the generation of electrical energy;
(ii) propulsion of the vehicle.
[ CCH Note: S 8A(5) will be repealed by No 86 of 2022, s 3 and Sch 2 item 3, effective 1 April 2025. For application provision, see note under s 8A(2) .]
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