fbt ev australia

In Australia, salary-packaging an EV just got the accountant doing fist pumps. Since 1 July 2022, eligible zero or low-emission cars are effectively FBT‑free for employers, provided the car was first held and used after that date and was under the fuel‑efficient Luxury Car Tax threshold (around $89k in 2023–24).

That covers battery EVs and hydrogen fuel-cell cars; plug‑in hybrids only qualify up to 31 March 2025 (after that, no dice for new benefits). You still get a Reportable Fringe Benefits Amount on your payslip, but the FBT bill itself is zilch, which makes novated leases far less painful than stepping on Lego.

Running costs bundled into the benefit—electricity, rego, insurance, servicing—are part of the exemption; home chargers and luxury-priced cars are not. If the price tips over the LCT threshold, the magic disappears faster than your range at 130 km/h. For fine print and edge cases, check the ATO or your tax pro before you sign anything.