GO Green! It might now ‘pay’ to drive a ‘green’ car. Legislation has passed that provides an FBT exemption for electric vehicles.
The exemption applies retrospectively from 1 July 2022. Importantly, salary packaged (novated lease) cars do qualify. So, it’s potentially a great opportunity for those who are considering an electric vehicle.
The exemption applies to the following cars:
- Battery electric vehicles
- Hydrogen fuel cell electric vehicles
- Plug-in hybrid electric vehicles
Second-hand cars can qualify if their first retail sale is on or after 1 July 2022.
It’s important to note that the exemption is only available to cars valued below the luxury car tax threshold. The threshold for the 2022-23 financial year is $84,916.
The value of the exempt car benefit is included in an employee’s reportable fringe benefits amount.
So, making your next car ‘green’ might now make a lot of sense – financially, and environmentally. You can read more about the exemption on the ATO’s website here. GO Salary can also assist, please get in touch to discuss.