New rules from ATO for FBT on Electric Vehicles

The Australian Government has announced a proposal to remove the Fringe benefit tax (FBT) on electric cars from 01 July 2022. This measure is not yet law. If enacted, this will apply from the FBT year beginning 1 April 2022. 

For FBT return preparers, in the tax return, include the value of these exempt car fringe benefits in the calculation of an employee’s reportable fringe benefits amount. This is part of the Australian Government drive to increase take-up of electric cars.