Get all your news in one place.
100's of premium titles.
One app.
Start reading
The Guardian - AU
The Guardian - AU
Environment
Elias Visontay Transport and urban affairs reporter

EVs to cost more under a Coalition government, after Dutton’s apparent backflip on popular tax break

Leader of the Opposition Peter Dutton leaves after a press conference at the Archdiocese of Hobart, on day 27 of his 2025 Federal Election Campaign in the seat of Clarke, Thursday, April 24, 2025. (AAP Image/Mick Tsikas) NO ARCHIVING
Clean car advocates and manufacturers were pleased when Peter Dutton appeared to commit to the fringe benefits tax exemption for EVs on Monday before the opposition leader’s commitment days later to scrap it. Photograph: Mick Tsikas/AAP

Electric vehicles would cost more under a Coalition government, after Peter Dutton confirmed he would scrap a popular tax break for EV drivers in an apparent backflip that has caused confusion and anger among clean car advocates.

The initiative, which was introduced by the Albanese government in 2022, has meant if a person buys an EV priced under $91,387 through a novated lease program via their employer (when a lease is paid off through pre-taxed salary deductions) they do not have to pay fringe benefits tax (FBT) – even if the car is only for personal use.

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.