What the Federal Government’s proposed electric car discount may mean for taxpayers

Under the current statutory formula for valuing car fringe benefits, electric cars are arguably at a disadvantage compared to fossil fuel-consuming cars, but this may soon change, as discussed by Hayley Lock and Sam Gathercole.

One of the Federal Government’s policies, announced as part of its election platform, is to introduce import tariff and fringe benefits tax (FBT) concessions for certain electric vehicles from 1 July 2022. The exemption would apply to vehicles value below the threshold for the luxury car tax for low-emission vehicles, which for the 2021-22 financial year is $79,659. FBT exemption Under the current statutory formula for valuing car fringe benefits, electric cars are arguably at a disadvanta...

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Authors: Hayley Lock, Sam Gathercole

Published Date: 02 June 2022