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Donwr(Newbie)Newbie
11 Jan 2023

Under a Novated Lease arrangement car running costs include items such as registration, insurance, fuel, servicing, maintenance and so on.

VicRoads (Victorian Government vehicle registration authority) have issued an Electric Vehicle Road-user charge based on kilometers travelled and a cents per kilometer fee.

The Victorian Government introduced the road user charge as a way for EV owners to pay their fair share for road maintenance and infrastructure. Petrol and Diesel driven cars contribute by paying for the fuel excise which is included in the price per litre of fuel.

The EV Road-user fee relates to the actual on-road use of the car.

If the fee remains unpaid after due payment date, VicRoads may suspend or cancel the car registration.

Question:

May the VicRoads EV Road-user charge be considered a car running cost under a Novated Lease arrangement?


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2 replies
803 views
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AriATO(Community Support)Community Support
18 Jan 2023

Hi @Donwr


Our technical team have advised, the following car expenses are exempt from FBT if they are provided for an eligible electric car during the period when the car is used, or available for the private use of, the employee:


  • Registration
  • Insurance
  • Repairs or maintenance
  • Fuel (including electricity to charge and run electric cars)

Its been recommended that you get tailored technical assistance to confirm if the road-user charges you've specified are also exempt or not.

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Most helpful reply

AriATO(Community Support)Community Support
18 Jan 2023

Hi @Donwr


Our technical team have advised, the following car expenses are exempt from FBT if they are provided for an eligible electric car during the period when the car is used, or available for the private use of, the employee:


  • Registration
  • Insurance
  • Repairs or maintenance
  • Fuel (including electricity to charge and run electric cars)

Its been recommended that you get tailored technical assistance to confirm if the road-user charges you've specified are also exempt or not.

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