RACQ welcomes electric vehicle tax exemption
Queenslanders looking to get an electric vehicle can now save thousands of dollars every year thanks to the fringe benefit tax incentives now passed in the Senate.
RACQ General Manager Advocacy Joshua Cooney said the measures would help boost the fleet of EVs in Australia.
“This is a significant move from the Federal Government,” Mr Cooney said.
"It will make a difference in making EVs more attainable and affordable.
“Piece by piece, Governments are making decisions that help turn the dial on this important transition. Eligible electric vehicles will be exempt from Fringe Benefits Tax (FBT) which will save employees looking to salary sacrifice a mid-size EV $4,700 a year,” Mr Cooney explained.
“If motorists pair this with the Queensland Government’s $3,000 rebate on eligible EVs, they could save $7,700 in the first year alone.
“Over a three-year lease, the savings jump to $17,100, which is significant.”
Exact savings vary depending on income and car value.
Mr Cooney said the EV tax exemption was a step in the right direction.
“Not only are EVs more sustainable modes of transport but running costs could be up to 90% cheaper than a petrol car,” he said.
“We hope these changes will mean existing electric car owners will be incentivised to sell their electric car and lease a new one - increasing the number of more affordable electric cars in the market.
“We need to get more models into the market – particularly the second-hand market. The most affordable electric car will be a second-hand one.
“But incentives are only part of a big picture.
"Incentives make EVs more affordable, but we need policies that will make them more available.
“We also need more education to change consumer attitudes and increased investment in charging infrastructure, to ease the range anxiety people have, particularly in a state as vast as Queensland.”
The exemption will apply retrospectively to cars leased from 1 July 2022.
RACQ covered incentives and other key policy areas in its submission to the Federal Government’s consultation on the National Electric Vehicle Strategy which can be found here.
For a summary on the Club’s position on electric vehicles read more here.
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