Taxation Opportunities for Electric Vehicle Owners

If you are considering purchasing or already own an electric vehicle (EV), there are several financial and taxation opportunities available to help reduce the total cost of ownership. Below are some of the key incentives to consider:

Salary Packaging and FBT Exemption

Employees can save significantly by packaging an EV under the Fringe Benefits Tax (FBT) Exemption for zero and low-emission vehicles.

• Example: For an EV valued at $50,000, an employee could save up to $4,700 annually through reduced taxable income.
• This incentive applies to vehicles used for personal and work-related purposes.

Cost of Electricity for Work Use

The Australian Taxation Office (ATO) has introduced a standard rate of 4.2 cents per kilometre to account for electricity costs associated with EVs used for work-related travel.

This simplifies compliance and reduces record-keeping for both employers and employees.

Depreciation Deductions

If your EV is primarily used for business purposes, you may be eligible to claim depreciation for:

• Charging stations or units installed for the vehicle.
• Other associated costs, such as maintenance or accessories required for business operations.

How We Can Help

Our Tax & Business Services team can help you navigate the tax and financial opportunities associated with EV ownership. Whether you’re exploring your options or need assistance with salary packaging, depreciation claims, or compliance, we’re here to support and assist you.