The fringe benefits tax (FBT) treatment of eligible electric vehicles (EVs) will change. This will make sure support for EV uptake stays targeted and fiscally sustainable.
The concession will transition to a permanent 25 per cent FBT discount.
Timeline
The government announced these changes in the 2026–27 Budget.
A 25 per cent FBT discount will apply to:
eligible EVs valued over $75,000 from 1 April 2027
all eligible EVs from 1 April 2029.
Eligible EVs valued at $75,000 or less will still get an 100 per cent FBT exemption where the commitment to provide a vehicle is made before 1 April 2029.
