Ask your Aspen Advisor:
“Is now the time to move on an EV for our business or salary packaging, or should we wait for the review to finish?”
Electric vehicles are no longer a novelty. They are parked in suburban driveways, business fleets and salary packages right across Australia.
A big part of that shift has been the Electric Car Discount, especially the FBT exemption for eligible EVs provided to employees. That concession is now under review, which has a lot of people wondering: have we missed the boat, or is there still time to use it?
Where things stand right now
For now, the key settings are still in place:
- Certain zero or low-emission vehicles below a price threshold can be exempt from fringe benefits tax if provided as a car benefit to employees.
- That has made novated leases and packaged EVs much more attractive than equivalent petrol cars in many cases.
- On the business side, EVs may still benefit from higher luxury car tax thresholds for fuel-efficient vehicles and other concessions.
The Government’s review is mostly about cost and design for the future. Any major changes are expected to be forward-looking, not retrospective.
What this means for buisnesses and employees
If you are thinking about an EV, this is not a “panic and rush” situation, but it is also not a reason to sit frozen on the fence.
For employers and employees, the questions to ask include:
- Do we have staff who already want an EV and are suitable for a novated lease?
- Are there business vehicles coming up for replacement in the next 12–24 months?
- How many kilometres do we realistically drive, and does an EV fit that pattern?
- Do we have somewhere practical to charge – at home, at work, or both?
In many cases, the maths still favour EVs, especially where the FBT exemption and salary packaging structure are used properly.
Things to watch before you commit
Before you sign anything, it is worth:
- Checking that the specific model meets the eligibility rules (including price)
- Running a proper comparison between an EV and a similar petrol or hybrid on a like-for-like basis
- Thinking about charging costs, installation of chargers and any impact on home electricity bills
- Considering how the vehicle will be used if an employee leaves or circumstances change
This is where a simple spreadsheet and a short chat with your advisor can turn “seems like a good idea” into a clearer picture.
Final thought
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