You don’t pay FBT if you provide private use of an electric car that meets all of the following conditions:
- The car is a zero or low emissions vehicle
- The first time the car is held and used is 1st July 2022
- The car is used by a current employee or their associates INCLUDING FAMILY MEMBERS
- Luxury Car Tax was never paid on the importation or sale of the car
- From the 1st of April 2027 this will only apply to vehicles worth less than $75,000
- No further changes to FBT for cars worth less than $75,000 until 1st April 2029
Includes cost of charging/electricity!
Source: Matthew Thomas Senior Accountant ITP Batemans Bay May 2026