Upcoming Changes to Fringe Benefits Tax for Plug-In Hybrid Electric Vehicles
Posted on February 8th, 2025 by WLF
As we approach April 1, 2025, significant changes to the Fringe Benefits Tax (FBT) exemptions for plug-in hybrid electric vehicles (PHEVs) are set to take effect. At WLF, we are dedicated to keeping you informed and prepared for these updates. Here’s what you need to know to stay ahead and make the most of your vehicle benefits.
Key Changes to FBT Exemptions
Starting April 1, 2025, PHEVs will no longer qualify for the FBT exemption under the Electric Car Discount scheme. This change means that while battery electric vehicles (BEVs) will continue to enjoy FBT exemptions, PHEVs will not. This shift is part of the government’s broader strategy to encourage the adoption of fully electric vehicles.
What This Means for You
If you’re considering purchasing a PHEV, now is the time to act. By securing your vehicle before the April 1 deadline, you may still be able to benefit from the current FBT exemptions in the future. This can result in significant savings over the life of your vehicle.
To continue to access the FBT exemption, you will need to ensure there is a binding financial obligation to provide the PHEV to the employee. The nuances can be confusing and it’s important to understand how these changes might impact you. Our team at WLF is here to help you navigate these changes and ensure you remain compliant while maximising your benefits.
The Benefits of Going Fully Electric
While the changes to PHEV tax benefits might seem daunting, they also present an opportunity to explore the advantages of fully electric vehicles. BEVs continue to benefit from FBT exemptions, making them an attractive option for both personal and business use. Additionally, some states offer further incentives, such as reduced registration fees and stamp duty exemptions, which can add up to substantial savings.
How Can We Help?
At WLF, we are committed to providing you with the best advice and support. Our team are ready to help you understand these changes and make informed decisions about your vehicle purchases. Whether you’re considering a PHEV or a BEV, we can guide you through the process and ensure you take full advantage of available tax benefits. Contact us now
Stay Informed and Proactive
The landscape of vehicle tax benefits is constantly evolving, and staying informed is crucial. We encourage you to reach out to our team with any questions or concerns. Together, we can navigate these changes and continue to drive towards a greener, more sustainable future.
🔍 Learn More: ATO Website
