The road ahead for EV fringe benefits tax
Electric vehicles continue to offer valuable Fringe Benefits Tax opportunities for employers and employees, particularly for businesses looking to provide attractive staff benefits while supporting lower-emission transport options. However, proposed changes announced in the 2026-27 Federal Budget mean the current concessions may not remain available in the same form in the years ahead.
Top 3 proposed changes to note:
⚡ Full exemption remains until 31 March 2027 for eligible electric vehicles
⚡ From 1 April 2027, the full exemption is expected to be limited to vehicles purchased for $75,000 or less
⚡ From 1 April 2029, the full exemption is expected to be removed, and the 25% FBT discount will apply to all eligible zero or low emissions vehicles below the luxury car tax threshold.
If your business offers, or is considering offering, an electric vehicle benefit, now is the time to understand what the proposed changes could mean for you.
Our full information sheet provides further detail on the timeline, eligibility considerations and planning points to keep in mind.
Read more below.
Contact us if you would like to discuss any of the above changes in further detail or find out how Brentnalls SA can help you.
The content provided in this article does not constitute advice. The information is of a general nature only and does not take into account your individual financial situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.
