Powering Australia - Electric Car Discount

The federal government's Electric Car Discount (ECD) legislation, exempting battery, fuel cell and plug-in hybrid electric vehicles (PHEV) from fringe benefits tax (FBT) and import tariffs, commenced on 1 January 2023. This policy aimed to to reduce the costs of EVs and thereby increase EV uptake, reducing transport related carbon emissions and fuel use across the light vehicle fleet.
 On April 2025, the FBT exemption was restricted to zero emissions vehicles only, excluding future PHEV purchases from the program. 
 In May 2026, the federal government announced future adjustments to the ECD to ensure it remains fiancially sustainable. From April 2027-2029, only EVs costing $75,000 AUD or less will recieve the full FBT discount, with more expensive EVs recieving a 25% discount on their payable FBT (provided they are below the luxury car threshold, currently $91,387 AUD). From Apr 2029 onwards, all EVs below the luxury car threshold will recieve a 25% discount on their payable FBT. 

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