electric cars exempt from fbt

Yes—many electric cars can be exempt from Fringe Benefits Tax in Australia, but only if they tick the right boxes.

• The car must be a battery‑electric or hydrogen fuel‑cell vehicle first held and used after 1 July 2022, with its first retail price below the Luxury Car Tax threshold for fuel‑efficient vehicles.
• Plug‑in hybrids were eligible, but that concession ended from 1 April 2025.
• It applies to employer‑provided cars and novated leases; running costs like rego, insurance and charging are covered by the exemption too.
• There’s still a reportable fringe benefits amount on your payment summary—so the ATO still knows you’re swanning about in silence.

FBT years run 1 April to 31 March; check exact eligibility and thresholds with current ATO guidance or your accountant before you sign anything.