Fully electric cars will be prioritised for tax cuts over hybrids and the commonwealth fleet will be electrified in a deal cut with the government by the Greens and Senate independent David Pocock.
Labor had planned to cut fringe benefits tax on low-emission vehicles to encourage fleet owners and employers to replace petrol vehicles with greener alternatives.
But the laws were set to be blocked by the Senate crossbench because they supported plug-in hybrids that also feature petrol engines.
