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RM1973(Newbie)Newbie
5 Feb 2025

We are trying to finalise a purchase of a PHEV With novated lease to take advantage of the EV FBT exemptions prior to 1st April. Initially I thought that you needed the contact to be finalised. I was told yesterday my car needs to be delivered by 31 March. The car I want is not in stock in Australia.. What if there is a delay in the vehicle arriving in Australia and i do not take receipt of it before 31 March? Even if we've completed the contract documents? I have searched the ATO documents but can not find where this is mentioned specifically.

Please help. Thank you

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1 replies
154 views
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Most helpful reply

Andante(Dynamo)Registered Tax Professional
12 Feb 2025

The transitional rules for PHEVs that preserve the exemption from 1 April 2025 in limited circumstances require all of the following:

  • before 1 April 2025, the employer committed to the application or availability of the car, in respect of the employment of the employee, for a period that began before 1 April 2025 and includes the relevant time; and
  • the car was made available to the employer under a pre-existing commitment (prior to 1 April 2025) e.g. a novated lease; and
  • before 1 April 2025 a car benefit relating to the car was provided; and
  • the car benefit was an exempt PHEV pre 1 April 2025.

The above paraphrases the Application of Amendments legislation in relation to the repeal of the exemption. Legal database - View: Principal legislation: SECTION 8A


Therefore, unfortunately, if the car hasn't been made available to you prior to 1 April 2025, the conditions for the transitional rules won't be met.

All replies

Most helpful reply

Andante(Dynamo)Registered Tax Professional
12 Feb 2025

The transitional rules for PHEVs that preserve the exemption from 1 April 2025 in limited circumstances require all of the following:

  • before 1 April 2025, the employer committed to the application or availability of the car, in respect of the employment of the employee, for a period that began before 1 April 2025 and includes the relevant time; and
  • the car was made available to the employer under a pre-existing commitment (prior to 1 April 2025) e.g. a novated lease; and
  • before 1 April 2025 a car benefit relating to the car was provided; and
  • the car benefit was an exempt PHEV pre 1 April 2025.

The above paraphrases the Application of Amendments legislation in relation to the repeal of the exemption. Legal database - View: Principal legislation: SECTION 8A


Therefore, unfortunately, if the car hasn't been made available to you prior to 1 April 2025, the conditions for the transitional rules won't be met.

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