Good news if you’re thinking of buying an electric car.
You can buy it through your business if you are operating as a company or trust (unfortunately not if you are a sole trader) and not pay Fringe Benefits Tax. This includes battery electric vehicle, hydrogen fuel cell electric vehicle, or plug-in hybrid electric vehicles. The car must be brand new, used by you or your associates such as family members. The FBT exemption will also include registration, insurance, repairs or maintenance and fuel (including electricity to charge and run electric cars).
The Tax Office has some conditions that apply to this, of course, so talk to us and we’ll help you get on the road.
If you have a Salary Sacrifice Arrangement, you may be able to purchase an Electric Vehicle using Salary Sacrifice which can provide a significant saving on the cost of the car.
Depending on where you live the State Governments also have incentives for Electric Vehicle purchase here’s a summary of what’s available. (source: NRMA https://electricvehiclecouncil.com.au/electric-car-discount/)
Victoria
$100 discount on registration fees annually
Exemption from the 'luxury vehicle' rate of stamp duty, paying only a flat rate of $8.40 per $200 of market value.
New South Wales
$3,000 rebate for the first 25,000 BEVs sold that are priced under $68,750 (RRP plus delivery charge and optional extras)
Waived stamp duty on EVs and FCEVs priced under $78,000 from 1 September 2021
Registration fee discounts.
EV drivers are also allowed to use the T2 and T3 transit lanes across NSW.
Queensland
$6,000 subsidy for the first 15,000 new EVs sold that are priced up to $68,000 (excluding delivery charges but including optional extras), for households earning less than $180,000 per year. Households with a gross combined income of more than $180,000 will receive a $3,000 subsidy instead.
Lower car registration fees for EVs compared
Lower stamp duty rates
ACT
Up to $15,000 in interest-free loans to help cover the upfront purchase cost of EVs priced up to $77,565.
Free registration for two years on EVs, as of 24 May 2021 until 30 June 2024, or 20 per cent off registration fees on older EVs.
Waived stamp duty on EVs purchased for the first time (limitations apply).
Northern Territory
$1,500 subsidy on stamp duty for BEVs and plug-in hybrid vehicles (PHEVs) for 5 years from 1 July 2022.
Cheaper registration for BEVs and PHEVs for five years from 1 July 2022.
Grants for home, workplace and public EV chargers.
Tasmania
Free stamp duty for two years on new and second-hand EVs as of 1 July 2021.
Free registration for two years on EVs purchased by car rental companies and coach operators.
South Australia
$3,000 rebate for the first 7,000 BEVs sold that are priced up to $68,750 from 28 October 2021. The South Australian government has not specified a time limit, and says the offer may or may not include delivery charges and optional extras depending on whether they are used to calculate stamp duty.
Free registration for three years on EVs first registered from 28 October 2021 until 30 June 2025.
Up to $2,000 rebate for the first 7,500 households that install an EV smart charger at home.
Western Australia
$3,500 rebate for the first 10,000 EVs sold from 10 May 2022 that are priced under $70,000 (RRP plus delivery charge and optional extras but before on-road costs).
Exemption from the 10 per cent on-demand transport levy.
Australia-wide incentives for EVs from the Federal Government
$2,500 lower purchase prices thanks to the removed 5% import tariff for EVs priced under the Luxury Car Tax limit.
Higher Luxury Car Tax (LCT) threshold for low-emission vehicles: $84,916 as compared to the standard vehicle LCT standing rate of $71,849.
Removed Fringe Benefits Tax (FBT), which saves $4,700 annually for individuals with a salary sacrifice agreement for a $50,000 EV.
$62.6 million funding package for small businesses to decarbonise, which can include fleet electrification.
