Track eligibility for the electric car FBT exemption
Eligible electric vehicles under the LCT threshold provided to employees are FBT-exempt.
Who must comply
Employers providing EVs/PHEVs to employees.
What triggers it
Providing a qualifying vehicle to an employee.
When due
Annual FBT return.
Evidence required
Log books, vehicle eligibility documentation, lease records.
Max penalty
FBT shortfall + interest if exemption claimed incorrectly
Summary
The Electric Car Discount provides an FBT exemption for eligible electric and plug-in hybrid vehicles below the LCT threshold for fuel-efficient vehicles ($91,387 for 2025-26). PHEV exemption applies to cars purchased before 1 April 2025 with continuous eligible use. Reportable fringe benefit reporting still applies on employee payment summaries.
Enforced by
Source legislation
Topics
Source: https://ato.gov.au/businesses-and-organisations/fringe-benefits-tax/types-of-fringe-benefits/exempt-benefits/exempt-benefits-cars. Rules Mate is not a law firm. Always verify against the live regulator source before acting.