No matter where you’re from, how old you are, what you do or what you love doing, there’s one thing we can guarantee you’re a fan of: discounts. 

We humans love discounts. Doesn’t matter what we’re buying, either. A chocolate bar with a $1 discount, or a new washing machine with a $100 discount – they’re both bargains in our eyes.

So, brace yourselves for the discount we’re about to discuss, because it turns out to be pretty juicy. The word of Labor’s electric car discount is spreading quick, and here’s everything you need to know about it:

How are Aussies going to receive them?

The ALP is delivering electric vehicle discounts through two main ways: import tariff exemptions and fringe benefits tax (FBT) exemptions. Here’s how they work:

  • Import tariff exemptions

Imported cars come with a 5% import tariff. But Labor has scrapped this tax for certain electric vehicles, making  electric cars cheaper. Some popular models include the Nissan Leaf, MG’s ZS EV and the Hyundai Ioniq 5 which you can expect to save thousands on, thanks to the scrapping of import tariffs.

  • FBT exemptions

The fringe benefits tax (FBT) applies to vehicles provided by employers to employees that are for personal use. It weighs in at a whopping 47-per-cent of the price of the vehicle. Thankfully, Labor’s electric car discount will see that changed as they’ve exempted electric vehicles and plug-in hybrids from FBT.

Do these discounts apply to every electric vehicle?

Well, not exactly. The import tariff and FBT exemptions will apply to cars with a price that’s within the luxury car tax threshold for fuel-efficient vehicles. In FY2020-2021, the threshold was $77,565 (a $2000 increase from the year before).

This means there are a few vehicles that sadly won’t be included in Labor’s electric vehicle discounts, including the BMW iX and the Porsche Taycan. 

How much can I save?

Let’s outline a few examples. A car with a $50,000 price tag (like the Nissan Leaf, for instance) is expected to be over $2000 cheaper, thanks to the scrapping of import tariffs. Private buyers can expect to save thousands here.

Regarding FBT exemptions, Labor expects that on a $50,000 model provided through employment arrangements, employers can save up to $9,000 a year. And since FBT is often passed on to employees, those employees will benefit directly from the policy.

Got everything you need to know and are all set to get yourself a new EV? Talk to the team at Fingo first. They’re Australia’s best team for automotive finance and a range of other vehicle solutions, including insurance. Serving both employers and employees, their expertise range from novated leases to fleet management. Get in touch with Fingo and step into a greener car, sooner.

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