fbt ev cars Page 8675

FBT on EVs in Australia got the fairy‑godmother treatment: many employer‑provided electric cars are FBT‑exempt.

To qualify, it must be a battery electric, hydrogen fuel‑cell or eligible plug‑in hybrid first held and used on or after 1 July 2022, priced below the fuel‑efficient Luxury Car Tax threshold, and provided to an employee as a car benefit.

The exemption also covers running costs (insurance, rego, servicing, electricity), but the benefit is still reportable, so it can affect income‑tested things like HELP and Family Tax.

From 1 April 2025, newly provided plug‑in hybrids drop out of the exemption; transitional relief applies if you were already providing the car under a binding arrangement.

Salary‑packaging an eligible EV can save serious AUD, but warranties, on‑road costs and charging gear aren’t magically tax‑free—read the fine print.

This is tax law, not pub trivia, so confirm details with the ATO or your accountant before you sign anything.