100% yes if the vehicle cost is below $84,916. Here is why.
The Australian Government has introduced a new Fringe Benefits Tax (FBT) exemption for electric vehicles (EVs), which came into effect on 1 April 2021. Under the new rules, employers are exempt from paying FBT on EVs that are provided to employees for private use.
This means that employees who are provided with an EV by their employer will not have to pay FBT on the car, as long as it meets certain conditions. These conditions include that the car must be wholly or mainly powered by electricity, and have a maximum range of at least 150 kilometres under standard test conditions.
The new FBT exemption is part of the government’s plan to encourage the uptake of EVs in Australia, and to reduce carbon emissions. It is hoped that the exemption will encourage more businesses to consider EVs as a viable option for their fleets, and help to increase the number of EVs on Australian roads.
We are assisting clients to get into $50,000 SUV’s for as little as $160 per week including the finance (EV Novated Lease) and all running costs. This new tax incentive combined with lower running costs of the EV is an absolute game changer for most families that are struggling with the increased cost of living.
Try our calculator below and see how the amazing new tax legislation can assist you.