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  • Fringe benefits tax and electric cars

    On 29 June 2022, the Government announced a proposal to:

    • remove fringe benefits tax (FBT) on eligible electric cars, and
    • include the value of these exempt car fringe benefits in the calculation of an employee's reportable fringe benefits amount.

    This measure is now law.

    From 1 July 2022, employers will not pay FBT on benefits provided for eligible electric cars and associated car expenses.

    The Government will complete a review into this exemption by mid-2027 to consider electric car take-up. We will provide an update when this review begins.

    For more information, visit Electric cars exemption.

      Last modified: 12 Dec 2022QC 70051