Hello Chasers,
The new Fringe Benefits Tax (FBT) Exemption for green vehicles finally passes, opening planning opportunities in 2023.
The Treasury Laws Amendment (Electric Car Discount) Bill 2022 has finally been passed by the Senate (with some Greens amendments), on 25 November 2022.
This means that, from 1 July 2022, an FBT exemption will apply for battery, hydrogen fuel cell and plug-in hybrid electric cars that have a first retail price below the luxury car tax threshold for fuel-efficient cars.
The 2022-2023 financial year fuel-efficient LCT threshold is $84,916, so this means you can purchase a car net of GST for this figure that qualifies for the FBT exemption and pay no fringe benefits tax. If purchased and ready to drive before the 30th of June 2023, you could also qualify to get it as a tax deduction under the instant asset write off which expires on the 30th of June 2023 too!
The car must not have been held, or used, before 1 July 2022 to qualify.
Importantly, plug-in hybrid electric cars will only get the benefit of the exemption for a limited time, as there is a sunsetting clause that terminates the FBT exemption for these types of vehicles from 1 April 2025.
Note that employers will still need to include exempt electric car fringe benefits in an employee’s reportable fringe benefits amount.
If you are ‘keen to go green‘ contact Dale on 55612643 before this opportunity runs out.
Have a great day!
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