fbt free electric car Page 4

Ah, the elusive FBT-free electric car—dreamed of by accountants and enviro-warriors alike. In Australia, Fringe Benefits Tax (FBT) exemptions for electric vehicles (EVs) are a tantalizing carrot, but they come with strings attached. Currently, fully electric vehicles may be exempt from FBT if used primarily for work and meet specific criteria, including having a limited private use percentage.

Key points:

• FBT exemption generally applies if the car is used mainly for business purposes.
• The exemption rules can be complex, involving logbooks and usage caps.
• Plug-in hybrids usually don’t qualify unless they meet strict electric-only distance requirements.

Prices for electric cars vary wildly—from a wallet-busting $50,000 AUD for a basic Nissan Leaf to over $150,000 for a Tesla Model S. For used bargains, check out Tradingpost or CarShowroom. Always double-check the latest ATO guidelines to avoid a nasty tax surprise.