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Australia has previously been looked down upon with our uptake of electric vehicles, mainly due to the minimal infrastructure and lack of government incentives to support the widespread adoption of the vehicles.

As you will be well aware, Australia has recently gone through a federal election with a new labor government as the winning party. With a new government comes new policies, one standing out is the 'Electric Vehicle Car Discount' policy which will see electric vehicles becoming exempt from FBT effective 1st July 2022.

This policy will make electric vehicles more affordable to encourage more Australians to choose electric over their petrol counterparts.

This electric car discount will be available on vehicles below the luxury car tax for fuel efficient vehicles. The threshold for 2020/21 is set at $77,565.

How do you benefit?

The discount policy will make electric vehicles exempt from two major costs:

Novated leasing of electric vehicles is going to experience a significant boost as there are thousands more in FBT savings up for grabs on electric vehicles.

As mentioned earlier, another point holding back the adoption of electric vehicles is the limited infrastructure to support driving them.

To address this, the labor government has also announced their consideration into measures to increase electric car sales and infrastructure, such as investing in charging stations across the country.

Electric Car Discounts Policy In Action: The Nissan Leaf

The introduction of the electric vehicle discount policy will see a Nissan Leaf, estimated at $50,000, become $2,000 cheaper with the removal of the import tariff.

In addition, when purchased with a novated lease, employers will save $9,000 a year with the FBT exemption. This FBT is often passed onto employees, therefore the employee and car-owner will experience this benefit.

For more information on the new FBT exemption and how you can benefit from the new electric vehicle discount policy, talk to our novated leasing specialists today here.