The Albanese government has introduced tax cuts to electric vehicles in its first sitting week, claiming the proposed changes would be “good for motorists, good for climate action and good for fleet purchases”. They won’t, however, help most Australians afford one.
Labor plans to stop the “fringe benefits tax” applying to electric vehicles. This tax usually applies to all cars provided by an employer to an employee, either as part of a salary sacrifice arrangement or as a company car available for personal use. This means the winners of the tax change are high-end employees who can afford a high-priced electric vehicle such as a Tesla.
Rolling business fleets over to the secondhand market is an important way to make electric vehicles more affordable to everyday people. But this tax cut won’t see this happen anytime soon.
