Electric Vehicles are now more affordable than ever!

Thinking of introducing or increasing your electric vehicle fleet? Now could be the time to save on Fringe Benefits Tax (FBT).

The Government has passed the Treasury Laws Amendment (Electric Car Discount) Bill 2022¹ to exempt (non-luxury) electric vehicles from Fringe Benefits Tax.

The exemption applies to:

Battery Electric Vehicles (BEV), Hydrogen Fuel Cell Electric Vehicles (FCEV) or Plug-in Hybrid Electric Vehicles (PHEV) purchased on or after 1 July 2022; Vehicles considered to be ‘cars’ for Fringe Benefit purposes; and Vehicles priced below the luxury car tax threshold for fuel efficient vehicles which is $84,916 for the 2022-23 income year.

What does this mean?

This could, depending on individual circumstances, result in significant savings for those who acquire eligible vehicles via a novated lease or that are provided as company car. Businesses are still required to perform FBT calculations for the purposes of determining a current employee’s reportable fringe benefits amount (RFBA) for each FBT year. For more information on RFBA for calculating personal income tax refer the ATO guidance here. EV orders prior to 1 July 2022, for delivery after 1 July 2022, may be eligible for the exemption.

While we provide leasing, we do not provide financial advice. Businesses or employees should seek financial or tax advice as everybody’s circumstances are different.

For those customers currently enjoying the ORIX Novated Leasing Product or interested in utilising this for their staff, there are marketing materials you can share with your employees on your intranet to help them explore taking advantage of the savings. Please contact marketing@orix.com.au for more information.

You can find more details on FBT exemption here. To learn more about how this exemption on FBT could benefit, talk to your ORIX Relationship Manager today.

For anything else, you can contact us on:
Novated Leasing – 1300 363 993 | Fleet – 1300 652 886

¹ Source: https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6876

This email is produced by ORIX Australia Corporation Limited, ABN 79 002 992 681. It is intended to provide general information about our products and services. This information is correct at the time of publication but may change without notice. The contents do not constitute financial or taxation advice and should not be relied upon as such. The calculations use a number of assumptions (including that the employee has no other existing salary packaged item) to provide an estimate of the Novated Lease cost and the potential savings from entering into such a lease which are set out in ORIX’s Terms & Conditions found at www.orix.com.au. * Conditions and charges apply for all optional extras. These are estimated maximum percentage savings to be used as a guide only and will vary according to each specific employee Novated Lease. Fleet discounts will depend on vehicle and product type and can change without notice. November 2022.