Electric Vehicles & FBT

Of special interest to employees and their employers, the ATO have released new legislation exempting electric vehicles from Fringe Benefits Tax, from the 1st of July 2022. 

To satisfy the conditions of being a ‘zero or low emissions vehicle’, the car must be:

• A battery electric vehicle

• A hydrogen fuel cell electric vehicle, or

• A Plug-in hybrid electric vehicle – however, from the 1st of April 2025, these will no longer be exempt. 

The vehicle must also be below the Luxury Car Tax threshold for fuel efficient vehicles for the period in which it was purchased, whether brand new, or privately (second-hand). For the 2024 financial year, the LCT threshold for fuel efficient vehicles is $89,332. 

Please contact Acct Smart Pty Ltd to discuss how this may affect you.