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EV Boost Back


On December 13, 2022
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FBT exemption for EV passed through the Senate

 

The long-awaited FBT exemption for electric vehicles finally passed through the Senate. This move is part of a broader plan by the Government to increase the adoption rates of EVs in Australia, which are among the lowest in the developed world.

This change is good news for employers as it removes FBT liability on company owned electric vehicles provided as part of a salary package for personal use by employees. Employers will still need to include FBT-exempt electric cars as a reportable fringe benefit as part of the employee's payment summary.

This covers Zero or low emission vehicles with value below the luxury car tax threshold ($84,916) for fuel efficient car such as:

•            Battery electric vehicles

•            Hydrogen fuel cell electric vehicles

•            Plug-in hybrid electric vehicles (conditions apply)

 To qualify for this exemption:

•            The first retail sale for the EV on the 1st of July 2022 or later.

•            Orders prior to the 1st of July 2022 qualify if they were delivered on the 1st of July 2022 or later.

•            Novated lease vehicles that are salary packaged qualify for the FBT Exemption similar to employer provided company vehicle with private use.

FBT exemption for Plug-in Hybrid Electric Vehicles won't be applicable starting the 1st of July 2025. Any pre-existing arrangement can continue until the end of the particular arrangement.

Vehicles designed to carry 1 tonne or more or designed to carry more than 9 passengers, will not qualify for this particular exemption.

Eziway is actively working with EV dealers to source the latest EV models for you. And we want to do it as painlessly and seamlessly as possible. That's why we're the only company in Australia to offer a personalised service through a single point of contact, without the long wait times of a call centre.

Our team of leasing experts are available to help you lease an EV. Talk to your dedicated client services officer. Call us on 1800 932 394.

Eziway Leasing team

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