How effective is the Fringe Benefit Tax incentive on Electric Vehicles?

The Electric Vehicle Fringe Benefit Tax incentive is a major factor in the federal government’s plans for net zero emissions by 2030. As part of this program, employees with company car allowances in their salaries will pay no Fringe Benefit Tax on said cars.

However, while numbers of Electric Vehicles on the roads have increased, the rate they’re being adopted at is projected to fail meeting the goals for net zero emissions by 2030. This incentive also leaves those with lower income or jobs without company cars behind.

New research has revealed that the 2027 goal for reviewing the EV tax incentive is too late, and is liable to cost taxpayers over 200 million dollars for an inefficient system.

Image: Image: Shutterstock – Owlie Productions

Produced By: Steven Samaras

Featured In Story: Dr Anna Mortimore, Lecturer and research author from the Department of Accounting, Finance and Economics at Griffith University

First aired on The Wire, Wednesday 29 May 2024