When does Fringe Benefits Tax exemption expire for Electric Vehicles?

 Author: JayATO(Community Support)Community Support

26 Mar 2026

Hi @JackA,

The FBT exemption for electric vehicles doesn't have an expiry date for battery electric vehicles and hydrogen fuel cell electric vehicles. However, from 1 April 2025, plug-in hybrid electric vehicles (PHEVs) are no longer considered zero or low emissions vehicles under FBT law and aren't eligible for the exemption.

The government will complete a review into the electric vehicle exemption by mid-2027 to consider electric car take-up. We'll provide an update when this review begins.

You can continue to apply the exemption for PHEVs if both of these conditions are met:

• the PHEV was used, or available for use, before 1 April 2025 (and that use was exempt)
• you have a financially binding commitment to continue providing private use of the vehicle on and after 1 April 2025.

For battery electric vehicles and hydrogen fuel cell electric vehicles that meet all eligibility conditions, the exemption continues to apply with no current end date. The key eligibility conditions include that the car is a zero or low emissions vehicle, it was first held and used on or after 1 July 2022, and luxury car tax has never been payable on it.

You can find more information about the electric cars exemption and FBT on plug-in hybrid electric vehicles on our website to understand how the exemption applies to your situation.