Fringe Benefits Tax exemption for eligible Electric Vehicles
- Business News
The electric car market in Australia is set to receive a major boost thanks to the recent passing of the Treasury Laws Amendment (Electric Car Discount) Bill 2022. This bill, which received Royal Asset on 12 December 2022, exempts certain electric cars from fringe benefits tax (FBT), making them a more attractive option for businesses and individuals.
Before the passing of this bill, electric cars were subject to FBT when they were provided as a benefit to employees by their employers. However, with the passing of the Electric Car Discount Bill, eligible electric cars are now completely exempt from FBT, removing a significant barrier to adoption.
This change is expected to have a major impact on the electric car market in Australia. Many companies have already announced plans to add electric cars to their fleets, and it is expected that more will follow as the cost and logistical barriers to adoption are removed. In addition to being exempt from FBT, electric cars in Australia also have access to various other incentives and benefits, including reduced registration fees and exemption from certain parking fees.
The passing of the Electric Car Discount Bill is a significant step forward for the electric car industry in Australia. It makes it more practical and financially feasible for companies to offer electric cars as a remuneration packaging option, which is expected to lead to a significant increase in the number of electric cars on the road. This will not only help reduce emissions and improve air quality, but it will also create new jobs in the electric car industry as demand increases.
If you are a business owner or employee in Australia and are interested in taking advantage of the electric car discount, it is important to consult a professional tax accountant. At Elevate Accounting, our team of tax accountants in Perth are experts in navigating the complex tax landscape and can assist you in making the most of this exciting opportunity.
So don’t wait – contact Elevate Accounting on 08 9460 1040 or click HERE today to learn more about how the Electric Car Discount Bill can benefit you and your business. Our Perth tax accountants will be happy to answer any questions and help you take advantage of this exciting opportunity.