As your trusted fleet management partner in South Australia, we’re keeping you informed about important changes to Fringe Benefits Tax (FBT) for electric vehicles. The recent AfMA webinar, delivered by KPMG’s Andrew Larmour, highlighted several critical updates that fleet managers need to know. Here’s what you need to understand about the evolving FBT landscape for electric vehicles.
Important deadlines and changes
The most pressing update concerns Plug-in Hybrid Electric Vehicles (PHEVs). While battery electric vehicles (BEVs) continue to enjoy FBT exemption with no current end date, the PHEV exemption will expire on April 1, 2025. This creates an urgent timeline for businesses considering PHEV fleet additions.
Understanding the impact
The FBT exemption delivers significant cost savings for businesses. For example, on a $60,000 electric vehicle with a four-year lease:
- Without exemption: Total cost to employer = $26,459
- With FBT exemption: Total cost to employer = $14,727
- Result: 45% reduction in costs
Important considerations for pool vehicles
If your business operates a PHEV pool car system, be aware that these vehicles will lose their exemption from April 1. The ATO doesn’t consider pool cars as having the required “financially binding commitment” to a single employee.
Home charging and infrastructure
The webinar also clarified several points about charging infrastructure:
- Electricity costs for charging are FBT-exempt when associated with car benefits
- The ATO allows a rate of 4.2 cents per kilometer for zero-emission EVs
- Home charging stations are considered a property fringe benefit and are subject to FBT
- Fixed charging allowances don’t qualify as exempt car expenses.
What this means for your fleet
As we approach these changes, it’s crucial to:
- Review your current PHEV fleet arrangements
- Consider the timing of new vehicle acquisitions
- Evaluate your charging infrastructure strategy
- Ensure proper record-keeping for charging costs.
Next steps
Need help navigating these changes? As your fleet management partner, we’re here to help you understand how these FBT changes affect your specific situation and develop strategies to optimise your fleet arrangements.
Contact our team at Thyme Fleet to discuss your fleet’s transition strategy and ensure you’re making the most of available FBT benefits while they last.
Want more information? Download the presentation.
