2022-23 Budget On Electric Car Discount
With the Australian government’s commitment to helping its people, the $345 million Electric Car Discount will exempt eligible electric cars from fringe benefits tax and a 5% import tax that will pull down the cost of some electric vehicles. The funding help to increase the use of electric models as well as back up the introduction of charging infrastructure.
This budget encourages the uptake of zero and low-emission cars. Car manufacturers are encouraged by this course to continue to be involved with the Government on practical and feasible measures to de-carbonize Australia’s light vehicle sector.
More benefits will be expected by the motorist in this budget with the Labor government’s commitment to these measures. Electronic cars will be eligible if their retail price is less than the luxury car tax threshold for fuel-efficient cars, which for this financial year is $84,916.
Electric Car measures noted are:
- Fringe Benefits Tax (FBT) exemption for hydrogen fuel cell, battery, and plug-in hybrid electric cars first held and used on or after 1 July 2022, where the retail price is less than the luxury car threshold of $84,916 for 30 June 2023 for fuel-efficient cars with fringe benefits provided on or after 1 July 2022.
- 5% import tariff discount on the importation of eligible electric cars from countries
The Government will cut taxes on electric cars so that more Australians can afford them and encourage them to purchase electric vehicles. Not to mention it is good for the environment since electric cars produce almost no carbon dioxide emissions when driving and considerably reduce air pollution.
The car must not have been held or used before 1 July 2022.
Employers will have to include exempt electric car fringe benefits to an employee’s reportable fringe benefits amount.
Yan (Jenny) Qi CA
Founder of Progress CA Pty Ltd
Tel. no. 0403 050 779