Electric cars to be exempt from FBT
An employee’s private use of an electric car provided by an employer may soon be exempt from FBT if the newly introduced legislation receives Assent. This measure was a part of a suite of energy policies taken to the election by the Labor party, which its hoped will increase the uptake of electric cars. To qualify, the car will need to be a zero or low emissions vehicle below the luxury car tax threshold, as well as being held and taken to be available for use after 1 July 2022. Zero or low emission vehicles in use prior to 1 July 2022 will not be eligible.
