Electric cars & Fringe Benefits Tax

Electric cars & savings with Fringe Benefits Tax (FBT)

Electric cars are apparently good for the environment. They may be even better for your agency’s bank account too!

The Electric Car Discount effective July 1st 2022 will make electric vehicles more affordable.

More crucially, vehicles priced under $84,916 (plus on road costs) will be exempt from the 47% Fringe Benefit Tax (FBT) that applies to most other cars on the market.

Electric cars enjoy a 5% reduction in import tariffs which will result in a further reduction in the purchase price of EVs under the $84,916 mark.

One can’t help but think that upgrading Property Management cars (where the employees often take the car home) to an electric makes ton of sense. It is important to knows which cars are exempt and which ones are not for FBT purposes.