Starting from July 2022, the Australian Government has implemented a new law called the Electric Car Discount Bill. It provides a Fringe Benefit Tax exemption for eligible electric vehicles, which applies retrospectively. This means that the tax exemption will be applicable for eligible car benefits provided from July 1, 2022.
The value of the car, at the first retail sale must be below the luxury car tax threshold for fuel efficient cars, — which is $84,916 for the 2022-23 income year. The first retail sale must also be on or after 1 July 2022.
The aim of the tax exemption is to encourage more people to buy electric cars and reduce carbon emissions from the transport sector. The exemption will be reviewed after three years to assess the take-up of electric cars. The ATO (Australian Taxation Office) has stated that the Government will complete a review by mid-2027. READ MORE HERE