Electric Vehicles are now cheaper after the federal government has passed the Electric Car Discount Bill through parliament.
The bill removes the 5% import tariff for zero- and low-emission vehicles that are beneath the Luxury Car Tax Threshold ($84,916).
The bill also provides a fringe benefits tax (FBT) exemption for eligible cars made available for employees by employers.
For a vehicle valued at about $50,000, it means a $9,000 benefit to an employer or a $4,700 benefit to an employee using a salary-sacrificing arrangement, according to government calculations.
The government will apply the FBT exemption retrospectively to eligible vehicles first used on or after 1 July 2022.
Eligible plug‑in hybrid electric vehicles will also be FBT-exempt when provided under arrangements entered into before 1 April 2025.
Treasurer Jim Chalmers said the Electric Vehicles are now cheaper because of the Electric Car Discount Bill would make.
“More Australians will be able to get behind the wheel of an electric car thanks to these changes, which will reduce up‑front and ongoing costs,” he said.
This is good news for SMEs who are seeking for a vehicle loan to boost their businesses based on this previous post as they are optimistically bouncing back from the set backs due the lockdowns.