Fringe Benefits Tax Assessment Act 1986

PART III - FRINGE BENEFITS

Division 2 - Car fringe benefits

Subdivision A - Car benefits

SECTION 8A EXEMPT CAR BENEFITS: CARS THAT ARE ZERO OR LOW EMISSIONS VEHICLES

8A(1)
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)

View history reference

a hydrogen fuel cell electric vehicle; or

(c)

View history reference

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)

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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) .]

View history note

History

S 8A inserted by No 86 of 2022, s 3 and Sch 1 item 1, effective 1 January 2023. No 86 of 2022, s 3 and Sch 1 items 7 and 8 contain the following application provisions:

7 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 July 2022.

(2)
Section 8A of the Fringe Benefits Tax Assessment Act 1986 applies to a car benefit only if the earliest time when a person both held and used the car was at or after the start of 1 July 2022.
8 Review of operation of electric car discount
(1)
The Minister must cause a review to be undertaken, in accordance with this item, of the operation of:
(a) the provisions of the Fringe Benefits Tax Assessment Act 1986 that are inserted or amended by this Schedule; and
(b) any provisions of the Customs Tariff Act 1995 that are inserted or amended pursuant to Customs Tariff Proposal (No. 5) 2022, which was moved in the House of Representatives on 2 August 2022 and of which notice was given by the legislative instrument numbered F2022L01001.

(2)
The review must relate to the operation of those provisions, as so inserted or amended, during the 3 years from the commencement of this Schedule and, in particular, their effectiveness in encouraging the uptake of cars that are zero or low emissions vehicles.

(3)
Without limiting subitem (2), the review must include consideration of:
(a) whether the operation of some or all of those provisions, as so inserted or amended, should continue; and
(b) what types of motor vehicles should be covered by the provisions.

(4)
The conduct of the review must include consultation with the public about the matters to which the review relates.

(5)
The review must be completed, and a report on the review must be given to the Minister, within 18 months after the end of the 3 years from the commencement of this Schedule.

(6)
The Minister must:
(a) cause the contents of the report to be made available to the public as soon as practicable, and in any event within 28 days, after the Minister receives the report; and
(b) cause a copy of the report to be tabled in each House of the Parliament within 15 sitting days of that House after the Minister receives the report.

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