Motoring Don't miss out on the headlines from Motoring. Followed categories will be added to My News. Car makers are rushing new models to market that take advantage of a lucrative electric vehicle lease perk, the Fringe Benefits Tax (FBT) exemption.
This tax concession, originally designed to encourage more Australians to switch to electric cars, has turned into a major driver of sales, far beyond government expectations. Recent data from the National Automotive Leading and Salary Packaging Association (NALSPA) reveals that the exemption has significantly boosted demand, especially in outer suburb areas like Werribee, Victoria, Beaumont Hills in New South Wales, and Duffy in the ACT. The lease body also reveals that a staggering number of Australians are taking advantage of the exemption with a surge in novated leases for battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).
Given this rising interest, many automakers are strategically launching new models that fall under the Luxury Car Tax (LCT) and FBT cut-offs. The 2024 Volkswagen I.D.
Buzz is an electric successor to the classic VW Kombi. Picture: Mitch Oke For instance, Volkswagen is reintroducing the iconic Kombi in a fully electric version—the ID. Buzz.
Priced from $79,990 for the cargo variant and $87,990 for the people mover, the ID. Buzz stays below the LCT threshold, making it an attractive option. Similarly, Audi is offering the Q4 e-tron as a premium yet affordable entry into the EV ma.