Changes to FBT and providing employees with electric cars
As an employer, you previously needed to pay FBT on electric cars provided to your employees. From 1 July 2022, you will be exempt from paying FBT on benefits provided for electric cars that meet all the following criteria:
- the car is a zero or low emissions vehicle
- the first time the car is both held and used is on or after 1 July 2022
- the car is used by a current employee or their associates (such as family members)
- luxury car tax has never been payable on the importation or sale of the car.
Registration, insurance, repairs, maintenance and fuel expenses provided for eligible electric cars are also exempt from FBT.
Note that despite the exemption, you’ll still need to determine the taxable value of the benefits provided, and include it in your employee’s reportable fringe benefits amount (RFBA).
You need to report the RFBA on your employee’s income statement or payment summary.
Remember, registered tax agents and BAS agents can help you with your tax.
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Disclaimer
The information in this newsletter / factsheet is factual but general in nature. It should not and is not to be construed as advice at any level whatsoever. Because it contains general information that has not been tailored to your personal circumstances it may not be suitable information for you. You must always seek personal financial or taxation advice prior to acting on this information. Further, as many of the comments in this newsletter / factsheet are general in nature, anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.