Bipartisan support for the Fringe Benefits Tax (FBT) exemption on eligible electric vehicles (EVs) will enable more working Australians to afford an EV amid rising cost-of-living pressures, according to the National Automotive Leasing and Salary Packaging Association (NALSPA).
NALSPA Chief Executive Rohan Martin said the Opposition Leader Peter Dutton’s commitment to the policy provided certainty for working families across the country facing growing cost-of-living pressures, assuring them that there is an affordable way to access the cost saving benefits of an EV.
NALSPA data shows the FBT exemption and novated leasing arrangements have helped thousands of Australian workers and families afford an EV for the first time and save even further on their vehicle running costs.
Since 2022, the FBT exemption has been instrumental in helping drive a material increase in the uptake of battery electric vehicles and plug-in hybrid electric vehicles across Australia. Workers living in the outer suburbs have been the biggest adopters of the policy.
NALSPA CEO Rohan Martin said: “It’s encouraging to see both major parties back a policy that is clearly working, making new and used EVs more accessible, easing transport costs, and helping reduce emissions.
“Cars are a major household expense, and this policy is helping to keep the costs of owning these vehicles down which in turn reduces emissions and running costs for working families.
"Novated leasing is the best way of financing a car and bipartisan support for the EV FBT exemption gives working Australians confidence that these additional savings will be available into the future when purchasing an EV.
“More Australians than ever before are now realising the cost saving benefits of a novated lease across all vehicle types, helping working Australians make use of their pre-tax income to reduce their taxes and costs to own and operate their car.
“The EV FBT exemption is extremely popular particularly among those living in the outer suburbs such as Werribee in south-west Melbourne, Baulkham Hills in north-west Sydney and Springfield south-west of Brisbane. There’s also been strong uptake in regional centres, including Toowoomba in Queensland and Ballarat in Victoria.
“We’re seeing a diverse range of workers making the most of the EV FBT exemption, including many teachers and healthcare workers. Importantly, lower-to middle-income earners see the most significant tax savings relative to their income through novated leasing.
“We look forward to working with the next federal government and are eager to see novated leasing arrangements, together with the EV FBT exemption continue to help working Australians ease cost-of-living pressures, while also helping the environment through reduced emissions.”
Contact details:
Sofie Wainwright: 0403 920 301