What does the Federal Government’s Electric Car Discount policy mean for an EV on novated lease?
The new policy is aimed at driving a further uptake of EVs, as well as encouraging car manufacturers to import and supply more affordable electric models in Australia.
The policy, which is subject to being legislated, is scheduled to commence on 1 July 2022 and is proposed to exempt many electric cars from:
- Import tariffs – a 5 per cent tax on some imported electric cars; and
- Fringe Benefits Tax (FBT) – a 47 per cent tax on electric cars that are provided through workplaces for private use.
It is proposed that these exemptions will be available to all electric cars below the luxury car tax threshold for fuel efficient vehicles ($91,387).
Read our article on the Discount for more information.