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Fringe benefits tax and electric cars

The Government has announced a proposal to remove fringe benefits tax on eligible electric cars from 1 July 2022.

Last updated 11 December 2022

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.