I am director of a company that is purchasing a car that fits the electric car FBT exemption. The car will be driven by me who is an employee of the company. The company is purchasing the car outright - it will not be purchasing it via a novated lease. Does it qualify for the FBT exemption without using a novated lease for purchase?
An electric vehicle that is not a plug-in hybrid (PHEV) and is either owned or leased by the employer can be exempt from FBT when provided to an employee for their private use, assuming all the conditions for FBT exemption are met. This exemption remains in place before and after 1 April 2025. See Electric cars exemption | Australian Taxation Office
There are additional conditions for PHEVs regarding the use from 1 April 2025 being under a pre-existing financial commitment, which may be difficult to satisfy in practice for an owned vehicle.
An electric vehicle that is not a plug-in hybrid (PHEV) and is either owned or leased by the employer can be exempt from FBT when provided to an employee for their private use, assuming all the conditions for FBT exemption are met. This exemption remains in place before and after 1 April 2025. See Electric cars exemption | Australian Taxation Office
There are additional conditions for PHEVs regarding the use from 1 April 2025 being under a pre-existing financial commitment, which may be difficult to satisfy in practice for an owned vehicle.
22 Apr 2024 · 3 min read time
15 Apr 2026 · 4 min read time
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