The Federal Government has introduced legislation providing a Fringe Benefits Tax Exemption for electric cars.
The exemption applies to zero or low emissions vehicles specifically:
- Battery electric vehicles;
- Hydrogen fuel cell electric vehicles; and
- Plug-in hybrid electric vehicles.
The exemption does not apply to vehicles designed to carry more than one tonne or nine passengers or more. The purchase price of the car must also be below $84,916 (Luxury car tax threshold for fuel efficient cars 2022/23).
The measures will take effect from 1 July 2022, note cars ordered before 1 July 2022 but delivered after 1 July 2022 will also qualify.
For those employers with significant car fleets moving to an electric vehicle fleet is likely to provide significant tax savings.
Should you require additional information concerning these changes please contact us on (07) 3910 5675 or [email protected].