EV FBT Exemption Calculator (Electric Vehicle FBT, Australia)
Check whether an electric car qualifies for the fringe benefits tax (FBT) exemption and what the exemption is worth. Enter the car's price, type and first-use date; the calculator tests it against the luxury car tax threshold for fuel-efficient vehicles and works out the FBT an employer would otherwise pay under the statutory formula. Figures are for the FBT year ending 31 March 2027: FBT rate 47%, statutory fraction 20%, LCT threshold $91,661 for 2026-27. The government has said it will complete a review of this exemption by mid-2027.
The EV FBT exemption means an employer pays no fringe benefits tax when it provides an eligible electric car for an employee's private use, including under a novated lease or other salary packaging arrangement. Eligible cars are battery electric and hydrogen fuel cell vehicles first held and used on or after 1 July 2022 on which luxury car tax has never been payable.
EV FBT exemption: the eligibility conditions
The Australian Taxation Office lists four conditions, all of which must be met: the car is a zero or low emissions vehicle; the first time it is both held and used is on or after 1 July 2022; it is used by a current employee or their associates, such as family members; and luxury car tax (LCT) has never been payable on its importation or sale. A zero or low emissions vehicle is a battery electric vehicle or a hydrogen fuel cell electric vehicle designed to carry a load of less than one tonne and fewer than 9 passengers. From 1 April 2025 a plug-in hybrid is no longer treated as a zero or low emissions vehicle, although the exemption can continue in certain conditions for arrangements already in place. Motorcycles and scooters do not qualify.
| Financial year of first sale | LCT threshold, fuel-efficient vehicles |
|---|---|
| 2026-27 | $91,661 |
| 2025-26 | $91,387 |
| 2024-25 | $91,387 |
| 2023-24 | $89,332 |
| 2022-23 | $84,916 |
The car's value must be below the threshold when it is first sold at retail and in any later sale, so a second-hand electric car that once attracted LCT never qualifies.
How much FBT the exemption saves: worked example
Without the exemption, FBT on a car is usually worked out with the statutory formula: taxable value = 20% of the car's base value, scaled by the days it was available for private use, less any employee contribution. FBT is the taxable value multiplied by the gross-up rate (2.0802 where the employer can claim GST credits, otherwise 1.8868) and by the 47% FBT rate. For a $68,000 battery electric car available all year: taxable value 20% × $68,000 = $13,600; FBT = $13,600 × 2.0802 × 47% = $13,296.64. That is the annual FBT the exemption removes. A $95,000 electric car first sold in 2025-26 is over the $91,387 threshold, so it is not exempt.
Still reportable, and what else is exempt
An exempt electric car benefit is still a reportable fringe benefit. If the notional taxable value is more than $2,000, the employer reports the grossed-up amount (taxable value × 1.8868) on the employee's income statement; in the example that is $25,660.48. Registration, insurance, repairs and maintenance, and fuel including electricity are exempt car expenses when provided with an eligible car. A home charging station is not. Employers who cannot separate home charging costs can use the ATO shortcut rate of 5.47 cents per kilometre for the FBT year starting 1 April 2026.
Year of the figures and the review
The 47% FBT rate and both gross-up rates apply to FBT years ending 31 March 2023 through 31 March 2027. The ATO states that the government will complete a review of the electric cars exemption by mid-2027; nothing has been announced about the FBT year that starts on 1 April 2027, so check the ATO before committing to a new lease.
Sources: Australian Taxation Office, Electric cars exemption (updated 1 April 2026), Luxury car tax rate and thresholds (updated 1 June 2026) and Fringe benefits tax rates and thresholds. Last updated: October 2026.