No FBT on EVs

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peterdannock  •  22 Nov 2022   •  

It might be time to hold off on an electric car after the federal government passed a new law this week that could make electric cars $12,500 cheaper. it is believed that it could “turbocharge” the shift away from petrol and diesel . cars.

The new laws do not cut the retail price of the vehicles but work by offering a tax benefit by exempting the electric vehicles from fringe benefits tax. Indicative modelling suggests that on average, a consumer could expect to save between $3,000 and $5,000 each year in income tax, thanks to this policy.

The next policy fight on electric vehicles will be a push to exempt the vehicles from luxury car tax, which adds 33 per cent to the cost of cars above a current threshold of $84,916 for fuel-efficient vehicles.

This all bodes well for the Tesla Model Y my wife and I have on order.

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