Zero or low emissions vehicles have been FBT (Fringe Benefits Tax) exempt since 1 July 2022. For taxpayers with an expensive car and/or a significant portion of private use, this can be quite a tax (FBT) saving.
Plug-in Hybrid cars have historically been included in this exempt category, however from 1 April 2025 they will no longer be considered zero or low emissions vehicles. Existing plug-in hybrid vehicles first used (ATO uses first use date rather than purchase date), between that 1 July 2022 – 1 April 2025 will continue to be FBT exempt. Fully electric cars will also continue to be FBT exempt.
For more details and eligibility criteria, please see the below link. One last thing – the ATO shortcut method of calculating home charging electricity expenses is 4.2c p.km.
