We're a Baker Tilly network member
Learn more
Back to top
FBT exemption for electric cars: Legislation passed by Parliament
Technical article

FBT exemption for electric cars: Legislation passed by Parliament

On 25 November 2022, the Senate passed the Treasury Laws Amendment (Electric Car Discount) Bill 2022 with amendments. The amendments were accepted by the House of Representatives on 28 November and the Bill now awaits Royal Assent.

This bill was introduced by the Government in August 2022 to provide an exemption from Fringe Benefits Tax (“FBT”) for a car fringe benefit attributable to an eligible low or zero emission car (i.e., battery electric vehicles; hydrogen fuel cell electric vehicles; and plug-in hybrid electric vehicles). The exemption is intended to encourage a greater take up of fuel-efficient cars and reduce Australia’s carbon emissions.

For more information in relation to this exemption see our previous article.

What were the amendments made by the senate?

The Senate made the following two amendments:

  1. The exemption for plug-in hybrid electric vehicles will cease to apply for new car fringe benefits provided on or after 1 April 2025. Arrangements in relation to plug-in hybrid electric vehicles entered into prior to 1 April 2025 will continue to be exempt. Further, the exemption for other types of electric vehicles (i.e. battery electric vehicles and hydrogen fuel cell electric vehicles) will remain in place.
  2. A mandatory review will have to be undertaken in three years to determine effectiveness of this exemption and confirm that it is achieving its purposes.

What are the next steps?

Clients should contact their Pitcher Partners representative to discuss their queries in relation to this exemption.

This content is general commentary only and does not constitute advice. Before making any decision or taking any action in relation to the content, you should consult your professional advisor. To the maximum extent permitted by law, neither Pitcher Partners or its affiliated entities, nor any of our employees will be liable for any loss, damage, liability or claim whatsoever suffered or incurred arising directly or indirectly out of the use or reliance on the material contained in this content. Pitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Liability limited by a scheme approved under professional standards legislation.

Our experts

Andrew Beitz

Andrew Beitz

Principal Adelaide
Peter Camenzuli

Peter Camenzuli

Partner Brisbane
Ashley Davidson

Ashley Davidson

Partner Melbourne
Michael Minter

Michael Minter

Managing Partner Newcastle and Hunter
Julie Strack

Julie Strack

Executive Director Perth
Raelene Berryman

Raelene Berryman

Partner Sydney
Pitcher Partners insights Get the latest Pitcher Partners updates direct to your inbox

Thank you for you interest

How can we help you?

Business or personal advice
General information
Career information
Media enquiries
Contact expert
Become a member
Specialist query
Please provide as much detail to ensure appropriate allocation of your query
Please highlight a realistic time frame that will enable us to provide advice within a suitable and timely manner. Please note given conflicting demands with our senior personnel, we will endeavour to respond to you within the nominated time frame. If you require an urgent response, please contact us on 03 8610 5477.
CPN Enquiry
Business Radar 2023
Tax facts 2023-24
Student careers 2023-24
Search by industry