The Australian Taxation Office has issued new guidance for workers to claim home electricity charging costs for their plug-in hybrid electric vehicles (PHEV), a move that the nation’s novated leasing body has described as common sense and overdue.
Workers who own a battery electric vehicle have been able to use a shortcut method to determine home charging costs, however until now there has been no guidance for workers who drive a PHEV and charge at home.
The ATO’s new draft compliance guideline introduces a formula to calculate home charging costs for PHEVs, which includes applying a flat rate of 4.2 cents per kilometre for deemed travel on electricity — an extension of the shortcut method available to workers with battery electric vehicles.
“This is a common sense, practical move by the ATO that reflects how most Australians charge their electric vehicles - at home,” National Automotive Leasing and Salary Packaging (NALSPA) chief executive Rohan Martin said.
“PHEVs have been growing in popularity, yet workers have lacked a simple shortcut to calculate and claim their home electricity charging costs. Since PHEV owners primarily use their PHEVs as pure EVs, this has understandably been frustrating for many.
“For employees with novated leases, this further increases the savings and benefits associated with leasing a PHEV, reinforcing why novated leasing remains one of the easiest and most cost-effective ways to get behind the wheel of an EV.”
The draft compliance guideline is open for public comment.
NALSPA represents Australia’s major salary packaging and novated leasing providers and advocates for policies that expand access to affordable, sustainable transport for working Australians.
Contact details:
Sofie Wainwright: 0403 920 301