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
Who must comply with this? The applicability test by industry, business structure and size.
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
- 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).
- CWLTHLodge Business Activity Statements at assigned frequencyGST-registered entities must lodge a BAS monthly, quarterly or annually as the ATO assigns.
- CWLTHMake trustee resolutions for trust distributions by 30 JuneDiscretionary trust trustees must validly resolve to distribute trust income before the end of the FY.
- CWLTHWithhold PAYG from employee and contractor paymentsEmployers must withhold tax from wages, certain contractor payments + report via STP / BAS.
- CWLTHPay company PAYG/GST/SG or face Director Penalty Notice (DPN)Directors personally liable for unpaid company PAYG, GST + SG via DPN regime.
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//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.