Electric Cars FBT Exemption (Cwlth)
Eligible zero/low-emission cars FBT-exempt under car limits (until 2025 for PHEVs).
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Who must comply
Employers providing eligible electric vehicles + their employees.
What triggers it
Provision of eligible EV.
When due
Annual FBT return + STP RFBA.
Evidence required
Vehicle eligibility evidence + log books + payroll records.
Max penalty
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Summary
Treasury Laws Amendment (Electric Car Discount) Act 2022. FBT exempt for eligible zero or low emission vehicles within LCT threshold. PHEV eligibility ceased 1 April 2025. Reportable Fringe Benefits still apply.
Enforced by
Source legislation
Topics
taxfbtclimate
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.
- CWLTHTrack eligibility for the electric car FBT exemptionEligible electric vehicles under the LCT threshold provided to employees are FBT-exempt.
- 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.
- 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.
Frequently asked questions
- Who must comply with Electric Cars FBT Exemption (Cwlth)?
- Employers providing eligible electric vehicles + their employees.
- What triggers Electric Cars FBT Exemption (Cwlth)?
- Provision of eligible EV.
- When is Electric Cars FBT Exemption (Cwlth) due?
- Annual FBT return + STP RFBA.
- What evidence is required for Electric Cars FBT Exemption (Cwlth)?
- Vehicle eligibility evidence + log books + payroll records.
Source: https://ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/fringe-benefits-tax. Rules Mate is not a law firm. Always verify against the live regulator source before acting.