The Massive Tax Perks Under The EV Discount Bill
Electric cars are the future, and if the premium features and cutting-edge technology don’t do enough to convince you, then it’s time to take a look at these massive tax perks you can enjoy under the EV Discount Bill.
The EV Discount Bill initially proposed in July 2022, is currently passing through parliament. As it stands, it could be the defining factor that motivates most Australian businesses to adopt electric vehicles. But what are these benefits that could be enjoyed within the bill by EV owners and potential buyers?
In this article, we will take a look at the top five perks you can enjoy under the EV Discount Bill:
#1. Fringe Benefit Tax
The proposed EV Discount Bill will see the removal of fringe benefits tax from electric cars- as long as they cost less than $84,916 per vehicle. Cars that cost above this threshold are classified as Luxury Cars and will not enjoy the removal of the fringe benefits tax.
#2. 100% Tax Deductible
The lease arrangement at the federal level allows you to sidestep import tariffs. Unlike leasing a combustion vehicle which is only partially deductible, leasing an EV is totally tax deductible. You can also use your pre-tax income to fund the lease cost of the EV.
#3. EV Funding
Beyond tax breaks and benefits, the government has pledged to spend big on EV infrastructure including over $500m committed to the Driving the Nation Fund with $146M in funding allocated to the Australian Renewable Energy Agency, $89.5m committed to creating ‘Hydrogen Highways’, and $39.8M to establish the National Electric Vehicle Charging Network. More than $850m has been pledged in total to the EV sector at the federal, state, and territorial levels.
#4. Rebates and Stamp Duty Waivers
Depending on the region of residence in Australia, new EV owners will receive rebates from the government. For example, In Victoria, 20,000 new electric car owners will receive a rebate of $3,000 from the government for EVs under $68,740.
In New South Wales, 25,000 new EV owners will receive a $3,000 rebate for EVs that fall under the same value. They will also enjoy a stamp duty waiver. States like ACT and Tasmania will waive EV stamp duty with offers for no registration fees for the first two years.
Besides rebates, some Australian states are offering grants to EV owners, i.e. Queensland and South Australia are also offering $3000 grants.
States like New South Wales and ACT have expressed their commitment to replacing all combustion engines by 2030. States like Queensland have already begun taking steps by building one of the longest EV super highways in the world.
While the Electric Car Discount Bill has been subject to several delays, it’s clear that the approval of the bill is heading toward a positive resolution. Australia continues to advance progressively towards its 2050 net-zero emissions target. Existing networks of petrol stations are being replaced by EV charging stations and hydrogen refueling stations. The right incentives are in place and the approval of the EV Discount Bill will spell a net positive result on Australia’s economy and climate.