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
Related obligations
- CWLTHLodge an FBT return and pay FBT by 21 MayEmployers who provided fringe benefits in the FBT year (1 April – 31 March) must lodge by 21 May.
- CWLTHElectric Cars FBT Exemption (Cwlth)Eligible zero/low-emission cars FBT-exempt under car limits (until 2025 for PHEVs).
- CWLTHAustralian Business Number (ABN) applicationEntities carrying on an enterprise in Australia need an ABN — without one, payers must withhold 47% PAYG from your payments. How to apply and who's eligible.
- CWLTHLodge Business Activity Statements at assigned frequencyGST-registered entities must lodge a BAS monthly, quarterly or annually as the ATO assigns.
- CWLTHPay company PAYG/GST/SG or face Director Penalty Notice (DPN)Directors personally liable for unpaid company PAYG, GST + SG via DPN regime.
- CWLTHMake trustee resolutions for trust distributions by 30 JuneDiscretionary trust trustees must validly resolve to distribute trust income before the end of the FY.
Frequently asked questions
- Who must comply with Track eligibility for the electric car FBT exemption?
- Employers providing EVs/PHEVs to employees.
- What triggers Track eligibility for the electric car FBT exemption?
- Providing a qualifying vehicle to an employee.
- When is Track eligibility for the electric car FBT exemption due?
- Annual FBT return.
- What is the maximum penalty for Track eligibility for the electric car FBT exemption?
- FBT shortfall + interest if exemption claimed incorrectly
- What evidence is required for Track eligibility for the electric car FBT exemption?
- Log books, vehicle eligibility documentation, lease records.
Source: https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/types-of-fringe-benefits/fbt-on-cars-other-vehicles-parking-and-tolls/electric-cars-exemption. Rules Mate is not a law firm. Always verify against the live regulator source before acting.