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Tasch_Maz(Newbie)Newbie
28 May 2026

I have a chattel mortgage on a 23 Mitsubishi Outlander PHEV which was FBT exempt at the time of purchase and payments finish in December 2028. It was written off yesterday due to a not at fault accident so will receive a payout. If I replace with the same car, will that still be FBT exempt or will I need to buy a fully electric to qualify?

Unfortunately, due to distances travelled with the business, and the areas travelled too, range is an issue for fully electric vehicles.

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1 replies
17 views
1 replies

All replies

KaraATO(Community Support)Community Support
29 May 2026

Hi @Tasch_Maz,


Yes, you can continue to apply the FBT exemption to your replacement Mitsubishi Outlander PHEV, provided the replacement is made under your existing contract and the overall terms remain the same.


If the insurance payout results in changes to the contract (like changes to lease payments, residual value, or term), this may be treated as a new financial commitment, and the exemption would no longer apply from that point.


You can review the ATO guidance on FBT for plug‑in hybrid electric vehicles to confirm your situation. If you need certainty based on your exact circumstances, you may wish to request a private ruling for certainty.

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Is a car FBT exempt if written off in an accident? | ATO Community