electric cars and fbt

In Australia, electric cars and FBT are finally on speaking terms — and you get the good side of the conversation.

Employer-provided battery EVs and hydrogen fuel-cell cars that were first held and used after 1 July 2022, and were under the fuel‑efficient Luxury Car Tax threshold (about $89,300), are generally FBT‑exempt.

Plug‑in hybrids lost that party invite from 1 April 2025, unless your arrangement started before then (grandfathered for its existing term).

Novated lease it if you like: the benefit is usually still reportable to the ATO even though no FBT is payable, which can affect things like Medicare Levy Surcharge thresholds.

Your employer can still package running costs, you still enjoy private use, and the tax man steps back — for once.

This is a summary, not tax advice; check the ATO or a tax professional for your exact situation.