Potential buyers of plug-in hybrid vehicles (PHEVs) currently have until April 2025 to make a purchase if they want to take advantage of the federal government's fringe benefits tax (FBT) exemption scheme, but industry experts are calling for the program to be extended. or signup to continue reading The FBT exemption is currently available for both PHEVs and electric vehicles (EVs) priced under $91,387 – the Luxury Car Tax threshold – which are purchased through novated leases. With the scheme, the government effectively takes on the cost of your employer's fringe benefits tax, which would typically be passed on to you.
Designed to incentivise zero- and low-emissions vehicles, the scheme has coincided with a rise in PHEV and EV sales in Australia, though these two technologies made up just 2.5 and 6.4 per cent of overall new vehicle sales last month, respectively.
However, following the release of the first iteration of the NRMA's two-part report, the National Automotive Leasing and Salary Packaging Association (NALSPA) has called for the FBT exemption to be extended, arguing it'll help more Australians get into PHEVs before making the switch to EVs. "PHEVs are the stepping stone to pure electric driving," said NALSPA chief executive Rohan Martin. "They're a practical solution for motorists who seek the benefits of lower running costs and lower emissions but may regularly drive longer distances or have concerns about driving range, charging times and lack of public chargi.