Australia To End Electric Vehicle Tax Break
The Australian federal government is changing the fringe benefits tax exemption for electric vehicles. Australian Prime Minister Anthony Albanese is slashing a tax break for new electric vehicles to address budget cutbacks. Drivers currently exempt from fringe benefits tax on electric vehicles valued under $91,000 will no longer receive the benefit. The source stated the scheme had exceeded its intended amount by 15 times. The move follows years of scrutiny regarding the policy's cost. All electric vehicles will be taxed at a 75% Fringe Benefits Tax rate starting in April 2029. Chris Bowen stated the change to the exemption is expected to save the budget $1.7 billion over the next four years. The policy change may influence consumer behavior, with some Australians potentially choosing more affordable EVs priced below $75,000 instead of the current $91,000 threshold from 2027 onwards.
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Sources · 7 independent
“The federal government is changing the fringe benefits tax exemption for electric.”
“Anthony Albanese is slashing a generous tax break for new electric vehicles. Currently, drivers who buy an EV worth under $91,000 are exempt from fringe benefits tax. The scheme has blown out by 15 times its intended amount.”
“From April 2029, all electric vehicles will be taxed at that 75% FBT rate. Chris Bowen says the change to the exemption will save the budget $1.7 billion over the next four years.”
“the federal government is set to wind back a generous tax break for high-end electric vehicles from next year. Australians can currently avoid fringe benefits tax if they purchase an electric vehicle under 91”
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