Eligibility Requirements:

You are exempt from FBT if you provide private use of an electric car that meets all the following conditions:

• The car is classified as a zero or low emissions vehicle.
• The car is both held and used for the first time on or after July 1, 2022.
• The car is used by a current employee or their associates (such as family members).
• Luxury car tax (LCT) has never been payable on the importation or sale of the car.

Benefits provided under a salary packaging arrangement are also included in this exemption.

Important Updates on Plug-In Hybrid Electric Vehicles

**Effective Date: April 1, 2025**

Starting April 1, 2025, plug-in hybrid electric vehicles (PHEVs) will no longer qualify as zero or low emissions vehicles under Australian FBT legislation. As a result, PHEVs will be excluded from the electric vehicle exemption previously available to certain hybrids purchased through a Novated Lease, significantly affecting potential cost savings for Australian drivers.

Current Exemption Overview:

Under the current FBT guidelines, various zero and low emissions vehicles are exempt if their value is below the luxury car tax threshold of $91,387. This exemption currently includes:

• Battery Electric Vehicles (BEVs)
• Hydrogen Fuel Cell Electric Vehicles (FCEVs)
• Plug-in Hybrid Electric Vehicles (PHEVs) — provided they meet specific conditions.

Conditions for Continued PHEV Exemption:

If you own a PHEV and are concerned about FBT implications after April 1, 2025, you may still qualify for the electric car exemption if you fulfill both of the following criteria:

1. The PHEV was previously exempt from FBT before April 1, 2025.
2. You have a legally binding agreement ensuring the continued private use of the vehicle beyond this date (please note that optional extensions of the existing agreement will not be recognized as binding).

Personal Assistance:

For personalized advice regarding your specific situation and eligibility for the exemption, we recommend contacting Eziway. They can provide insights tailored to your unique circumstances.

Explore Your Next Electric Vehicle:

If you are considering an electric vehicle, the Eziway Car Search platform offers a wide selection of options to suit your needs.

Eziway Car Search

Special Offer

If you settle a lease before March 31st, you will automatically be entered into a draw to win a $1,000 RedBalloon Voucher, giving you the chance for an exciting experience as you transition to electric driving.

Call the team at Eziway to get your fleet discount on your next car! 1800 932 394.