Recent changes to FBT
Changes to FBT record keeping
From 1 April 2024 (FBT year ending 31 March 2025), for certain benefits, employers will have a choice to use existing records in place of statutory evidentiary documents, such as travel diaries or employee declarations. This will only apply if the Commissioner of Taxation has made a determination by legislative instrument that applies to the travel diary or employee declaration for certain benefits.
For more information, see:
Upcoming changes to FBT
Plug-in hybrid electric vehicles – 1 April 2025 onwards
From 1 April 2025, a plug-in hybrid electric vehicle is no longer a type of vehicle that is eligible for the electric car exemption under FBT law.
However, you can continue to apply the exemption if both of the following requirements are met:
- The use, or availability for use, of the plug-in hybrid electric vehicle was exempt before 1 April 2025.
- There is a financially binding commitment (pre-existing commitment) before 1 April 2025, to continue providing the use, or availability for use, of the car for private purposes on and after 1 April 2025. Any option to extend the agreement exercisable on or after 1 April 2025 is not considered binding.
Where these requirements are met, the exemption continues to apply until:
- There is a change to the pre-existing commitment on or after 1 April 2025 – the FBT exemption for the plug-in hybrid electric vehicle will no longer apply from the date of the new commitment.
- The pre-existing commitment stops on or after 1 April 2025 – the FBT exemption for the plug-in hybrid electric vehicle will apply up to, and including, the date it finishes.
For more information, see:
- Electric cars exemption
- FBT on plug-in hybrid electric vehicles
- Electric vehicles and fringe benefits tax fact sheet
Recent public advice and guidance
Electric vehicle home charging rate – calculating electricity costs when charging a vehicle at an employee’s or individual’s home
Practical Compliance Guideline PCG 2024/2 Electric vehicle home charging rate – calculating electricity costs when charging a vehicle at an employee’s or individual’s home was published on 1 February 2024.
Our PCG provides guidance on how employers with FBT obligations and individuals with work-related car expenses can calculate electricity costs when charging electric vehicles at an employee's or individual's home.
Employers and individuals can choose to use the methodology outlined in our PCG where they meet the eligibility requirements. Alternatively, they can determine the cost of the electricity by calculating its actual cost. The choice is per vehicle and applies for the whole income or FBT year.
The EV home charging rate can be used by employers who provide car or residual fringe benefits for calculating a recipient contribution, and the cost of fuel to be included in operating costs. It can also be used where a reimbursement for car expenses is made by the employer to the employee.
Although the private use of an eligible electric car is exempt from FBT, an employer is still required to include the value of the benefit when working out if an employee has a reportable fringe benefits amount. The EV home charging rate can be used when working out the notional taxable value of the benefits associated with the private use of the electric car for reportable fringe benefits purposes.
Plug-in hybrid vehicles which have an internal combustion engine are not covered by this PCG.
Car parking fringe benefits
Car parking fringe benefits (chapter 16) in Fringe benefits tax – a guide for employers was updated at the end of 2023 to reflect the principles in Taxation Ruling TR 2021/2 Fringe benefits tax: car parking benefits and to provide further guidance on contemporary car parking arrangements.