This guide explains how the EV FBT exemption works, who may be eligible and what to consider when selecting an electric vehicle.
This guide explains how the EV FBT exemption works, who may be eligible and what to consider when selecting an electric vehicle.
The electric vehicle FBT exemption is an Australian Government initiative designed to encourage the adoption of low and zero-emission vehicles.
The electric vehicle FBT exemption is an Australian Government initiative designed to encourage the adoption of low and zero-emission vehicles.
When an eligible electric vehicle is provided to an employee through an approved employment arrangement, employers may not be required to pay Fringe Benefits Tax on that vehicle benefit. This can lower the overall cost of driving an EV through salary packaging, novated leasing or company vehicle programs.
When an eligible electric vehicle is provided to an employee through an approved employment arrangement, employers may not be required to pay Fringe Benefits Tax on that vehicle benefit. This can lower the overall cost of driving an EV through salary packaging, novated leasing or company vehicle programs.
To qualify for the FBT exemption, the vehicle and employment arrangement must satisfy all applicable Australian taxation requirements.
To qualify for the FBT exemption, the vehicle and employment arrangement must satisfy all applicable Australian taxation requirements.
For eligible employees and businesses, the EV FBT exemption may provide:
For eligible employees and businesses, the EV FBT exemption may provide:
- Reduced vehicle ownership costs
- Potential savings through salary packaging arrangements
- Lower employer tax obligations on qualifying vehicles
- Reduced fleet operating costs
- Greater accessibility to premium electric vehicles
- Support for sustainability and emissions reduction goals
Selected Polestar vehicle configurations may qualify for the electric vehicle FBT exemption where all legislative requirements are satisfied.
Selected Polestar vehicle configurations may qualify for the electric vehicle FBT exemption where all legislative requirements are satisfied.
Eligibility is typically influenced by factors including vehicle configuration, applicable pricing thresholds and the relevant Australian taxation rules in place at the time of delivery.
Eligibility is typically influenced by factors including vehicle configuration, applicable pricing thresholds and the relevant Australian taxation rules in place at the time of delivery.
When configuring your vehicle, review the price breakdown carefully. If Luxury Car Tax (LCT) does not appear, the vehicle configuration may qualify for the FBT exemption, subject to all other eligibility requirements.
When configuring your vehicle, review the price breakdown carefully. If Luxury Car Tax (LCT) does not appear, the vehicle configuration may qualify for the FBT exemption, subject to all other eligibility requirements.
Novated leases
A novated lease is one of the most popular ways to benefit from the FBT exemption for electric vehicles and certain associated costs. If your vehicle does not exceed the LCT threshold, it will likely be exempt from FBT.
A novated lease is one of the most popular ways to benefit from the FBT exemption for electric vehicles and certain associated costs. If your vehicle does not exceed the LCT threshold, it will likely be exempt from FBT.
For more information on how novated leasing works and for a list of Polestar’s leasing partners, click here.
For more information on how novated leasing works and for a list of Polestar’s leasing partners, click here.
Fleet and business
Fleet managers and business owners can benefit from the FBT exemption with a fleet of Polestar electric vehicles. Polestar works with businesses of all sizes to cater to their company vehicle or fleet needs.
Fleet managers and business owners can benefit from the FBT exemption with a fleet of Polestar electric vehicles. Polestar works with businesses of all sizes to cater to their company vehicle or fleet needs.
For more information, visit our fleet and business page here.
For more information, visit our fleet and business page here.
The FBT exemption is one of several incentives helping Australians transition to electric vehicles.
The FBT exemption is one of several incentives helping Australians transition to electric vehicles.
Explore Polestar's range of electric vehicles, learn more about salary packaging and novated leasing, or speak with our fleet team to understand how available EV incentives may apply to your circumstances.
Explore Polestar's range of electric vehicles, learn more about salary packaging and novated leasing, or speak with our fleet team to understand how available EV incentives may apply to your circumstances.