ROUND UP OF EV TAX INCENTIVES TODAY
WORDS BY ANBY ALCOMENDAS
As Australia continues its push towards a more sustainable future , electric vehicles ( EVs ) are becoming an increasingly popular choice . To encourage the adoption of EVs , the Australian government provides several tax incentives for both individuals and businesses . Here is a roundup of the electric vehicle tax incentives available in Australia in 2023 :
Luxury Car Tax Exemption : The luxury car tax ( LCT ) is a tax on luxury cars with a value above the LCT threshold . However , eligible electric vehicles are exempt from this tax , which means that EVs with a value below the threshold of $ 84,916 ( for the 2022-23 financial year ) are not subject to the LCT .
Reduced Fringe Benefits Tax : The Fringe Benefits Tax ( FBT ) is a tax on benefits provided to employees in addition to their salary or wages . From 1 July 2022 , employers do not need to pay fringe benefits tax ( FBT ) on eligible electric cars and associated car expenses .
Unlike other FBT exemptions , employers still need to determine the taxable value of the exempt car benefits to include it in their employee ’ s reportable fringe benefits amount ( RFBA ).
If the total value of reportable fringe benefits provided to an employee during the FBT year is more than $ 2,000 , employers must report the grossed-up amount of the benefits on the employee ’ s income statement or payment summary .
Instant Asset Write-Off : The Australian government offers instant asset write-off for businesses that purchase eligible assets , including electric vehicles . For assets purchased between 1 July 2022 and 30 June 2023 , businesses can immediately write off the full cost of assets valued at less than $ 150,000 .
State-Based Incentives : Some states in Australia offer additional incentives for electric vehicle adoption .
Victoria offers a range of incentives for electric vehicles , including a $ 3,000 subsidy for new electric vehicles priced below $ 68,740 . The state also offers rebates for the installation of home charging stations and public charging infrastructure .
New South Wales provides a $ 3,000 rebate for new electric vehicles priced below $ 78,000 . In addition , the state offers grants for businesses to install charging infrastructure and provides free registration for electric vehicles until 2025 .
Queensland offers a range of incentives for electric vehicles . Recently , it has doubled its rebate for electric vehicles from $ 3000 to $ 6000 from mid-year for households with a combined yearly income of $ 180,000 .
South Australia provides a range of incentives for electric vehicles , including a $ 3,000 subsidy for new electric vehicles priced below $ 69,000 . The state also offers rebates for the installation of home charging stations and public charging infrastructure .
6 ISSUE 40 MAY 2023 / WWW . AFMA . ORG . AU