05/05/2026
The Government has announced proposed updates to the EV Tax Discount, with changes set to roll out in stages.
For now, nothing changes. Current settings remain in place until 31 March 2027, meaning eligible EVs can still be packaged using 100% pre-tax income up to the luxury car tax (LCT) threshold ($91,387).
From 1 April 2027, a tiered approach is proposed:
β’ EVs under $75,000 remain fully FBT-exempt
β’ EVs between $75,000 and the LCT threshold receive a 25% FBT reduction
From 1 April 2029, a flat 25% FBT discount is proposed for all EVs under the LCT threshold, with no end date.
This is great news for employees, employers, and the broader transition to more sustainable transport! π