Watch this space as the Government’s pre-election promise to exempt electric cars from Fringe Benefits Tax (FBT) as of 1st July 2022 may become reality.
The Treasury Laws Amendment (Electric Car Discount) Bill 2022 was introduced into the House of Representatives on 27th July 2022. The Bill proposes to remove FBT on eligible electric cars provided by employers to current employees for private use.
The exemption is proposed to apply only to electric cars below the luxury car tax threshold for fuel efficient vehicles ($84,916 in 2022/23) that are first held and used on or after 1st July 2022. An electric car ordered prior to 1st July 2022 but not delivered until after 1st July 2022, will still be eligible for the exemption. Second hand electric cars may also qualify for the FBT exemption, provided the car was first purchased new on or after 1st July 2022.
We will keep you updated once the Bill becomes law.
The above is a summary of the proposed Bill but if you have any questions at all about the above please contact our office on 9387 5637.
