Next week’s budget will contain cutbacks to the concessional treatment of electric vehicles (EVs) that will save the government $1.7 billion over the budget period.
Announcing the changes to the Fringe Benefit Tax (FBT) exemption for EVs, Treasurer Jim Chalmers and Energy Minister Chris Bowen said the new rules would encourage manufacturers to offer EVs to the Australian market that were more affordable and cheaper to run.
The phased-in reductions will move to a permanent 25% discount of FBT for these cars. They won’t affect existing leases.
