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EV FBT Exemption: Luxury Car Tax Threshold Increased for 2024/2025

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The Luxury Car Tax Threshold for fuel efficient vehicles has been increased to $91,837 from 1 July 2024 and will be in place until 30 June 2025. To be eligible for the EV FBT exemption the car's value (includes delivery fees, accessories and options) must be below the Luxury Car Tax (LCT) threshold for fuel-efficient vehicles: <$91,837 for 2023/24.

Visit our EV database to see current pricing and which models which will be eligible for the FBT exemption:

LEARN MORE ➡ Electric Car FBT Exemption Explained (2024)

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What EVs are eligible for the FBT Exemption?

✅ Eligible cars that are zero or low emissions vehicles are exempt from Fringe Benefits Tax (FBT) that are first held and used after 1 July 2022.

🚗 Zero or low emission vehicles

A vehicle is a zero or low emissions vehicle if it satisfies both of these conditions. It is a:

  • battery electric vehicle, hydrogen fuel cell electric vehicle; and plug-in hybrid electric vehicle. Petrol-hybrid vehicles (e.g. Toyota Camry Hybrid) without a plug are not eligible. Learn more about the different electric vehicle types.
  • car designed to carry a load of less than 1 tonne and fewer than 9 passengers (including the driver).

📅 Vehicles are to be first held or used after 1 July 2022. If you ordered before this date and receive delivery after, you will be eligible.

2️⃣ A second-hand electric car may qualify for the exemption, provided it was first purchased new on or after 1 July 2022.

◀ Car value (includes delivery fees, accessories and options) must be below the Luxury Car Tax (LCT) threshold for fuel-efficient vehicles: <$89,332 for 2023/24.

📦 Applies to cars under salary packaging arrangements (including those procured under a novated lease).

⏳FBT exemption will be in place at least until 30 June 2025. It will be reviewed in 3 years.

🔌 Plug-in-hybrid vehicles to be phased out from 31 March 2025.

For further details on the bill refer to the explanatory memorandum.

About the author

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Danny Thai

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Danny is a consultant and entrepreneur working at the cutting edge of the electric vehicle and energy transition. He is passionate about educating and helping consumers make better decisions through data. He is the founder of zecar and is currently the EV Innovation Manager at Endeavour Energy.

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