Fringe Benefits Tax Exemptions on Electric Vehicles

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​From July 2022, the Federal Government introduced a Fringe Benefits Tax (FBT) exemption for eligible electric vehicles.This initiative makes it easier and more affordable than ever to switch to a low-emission vehicle — especially through a novated lease.

new or used—without the upfront financial strain.
 

What does this mean for you?

When you lease an eligible electric vehicle via salary packaging:

• 100% of your finance and running costs (including registration, servicing, insurance, and even charging) can be paid using pre-tax income

• This significantly reduces your taxable income — resulting in more take-home pay

• The FBT exemption means no additional tax liability on your novated lease, which traditionally applies to company vehicles used for personal travel.
   

Double the Tax Benefits Compared to Petrol Vehicles

Because electric vehicles are exempt from FBT, you could save thousands more over the lease term than you would with a traditional fuel-powered car.
It’s a powerful way to:

• Reduce your environmental impact

• Drive a new car with low running costs

• Maximise your tax efficiency
   

Who’s Eligible?

• The FBT exemption applies to:

• Battery Electric Vehicles (BEVs).

• Vehicles with a first retail sale price below the luxury car tax threshold for fuel-efficient vehicles

• New and second-hand vehicles, provided the original sale date is after 1 July 2022

 

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