The Australian Government's Electric Car Discount Bill, introduced in July 2022 to promote the affordability of electric vehicles (EVs), successfully passed through Parliament earlier this year.

Under this discount, eligible battery EVs, plug-in hybrids, and plug-in hydrogen fuel cell vehicles are exempted from Fringe Benefits Tax (FBT) up to the Luxury Car Tax Threshold of $84,916. Additionally, a 5% import tariff on certain imported EVs is waived as part of this Bill.

This initiative holds the potential to yield substantial savings for our novated lease and fleet customers, amounting to thousands of dollars annually. For a vehicle valued at approximately $50,000, the Federal Treasurer has stated that employers can anticipate savings of up to $9,000 per year, while employees on salary-sacrificing arrangements could save up to $4,700 annually.

Notably, the Bill includes an amendment that will exclude plug-in hybrids (PHEVs) from the FBT exemption starting from April 1, 2025. However, individuals with existing leases will still benefit from the FBT exemption until their lease's conclusion. The Government will apply the FBT exemption retrospectively to eligible cars first used on or after July 1, 2022.

Rohan Martin, Head of Corporate Affairs, expressed Maxxia's support for this initiative, saying, "As Australia's largest novated leasing provider and a leading provider of fleet management services, we have naturally welcomed this initiative as we support our customers to reduce their transport-related emissions."

The adoption of electric vehicles is an exciting and rapidly evolving phenomenon, and it is expected that this discount will further accelerate this transition. As part of the broader sustainability goals of the MMS Group, the company is actively electrifying its fleet, aligning with the global push toward sustainable transportation.

Stay tuned for more exciting updates in the world of EVs as Maxxia continues to lead the way in supporting environmentally friendly transportation solutions.