Treasury Laws Amendment (Electric Car Discount) Act 2022 (86 of 2022)

Schedule 1   Electric car discount: exemptions from fringe benefits tax

Fringe Benefits Tax Assessment Act 1986

1   At the end of Subdivision A of Division 2 of Part III

Add:

8A Exempt car benefits: cars that are zero or low emissions vehicles

(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.

(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.

(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.

(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.

(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.