At Thyme Fleet, we’re always keeping an eye on regulatory changes that affect our clients’ fleet management strategies. A significant shift is coming in April 2025 that will impact organisations using plug-in hybrid electric vehicles (PHEVs) in their fleets. Let’s explain what this means for you and how Thyme Fleet can help navigate these changes.
The change
From April 1, 2025, the Australian Taxation Office (ATO) will no longer classify PHEVs as zero or low-emissions vehicles for fringe benefits tax (FBT) purposes. This change could potentially increase the tax burden for businesses currently enjoying FBT exemptions on their PHEVs.
What this means for your fleet
If your organisation currently provides PHEVs to employees without incurring FBT, you’ll need to reassess your strategy. That said, there’s still a way to maintain the exemption under certain conditions:
- Your PHEV must have been exempt from FBT before April 1, 2025
- You must have a legally binding agreement in place for the private use of the vehicle after this date.
It’s important to note that new agreements made after April 1, 2025, or modifications to existing agreements could result in losing the FBT exemption.
How Thyme Fleet can help
We understand these changes might seem daunting, that’s why we’re here to help you navigate this transition smoothly. Whether you’re an existing client or thinking about becoming one, we’ll drive your business forward using the following:
- Fleet analysis: We’ll review your current fleet composition and identify which vehicles may be affected by this change.
- Strategic planning: Our team can help develop a strategy to minimise the impact of these FBT changes on your business.
- Agreement review: We’ll assist in reviewing and, if necessary, updating your vehicle use agreements to ensure they meet the new requirements.
- Alternative solutions: If PHEVs no longer fit your tax strategy, we can help explore other eco-friendly vehicle options that may still qualify for FBT exemptions.
The road ahead
While these changes present challenges, they also offer an opportunity to reassess and potentially improve your fleet management strategy. Whether it’s transitioning to fully electric vehicles or exploring other solutions, Thyme Fleet is here to ensure your fleet remains efficient, cost-effective and compliant with the latest regulations.
Remember, at Thyme Fleet, we proactively take care of your vehicle maintenance, registration, fuel management, and so much more. Let us help you navigate these changes and keep your fleet running smoothly into 2025 and beyond.
