Yep, the word has gotten around: Labor is keeping their promise to lower the price of electric cars. This has been received with cheers from all types of drivers – car enthusiasts wanting an upgrade, people who want to cut down on their emission output and those who can’t stand the sight of prices at the petrol station (which is basically all of us). 

Now, exactly what kind of discount are we talking about? In the words of Jerry Maguire, today, the team at Fingo are going to ‘show you the money!’ and break down exactly how much you can save on your next electric car thanks to Labor’s discount.

How are these discounts packaged?

Let’s first discuss how these hyped-up discounts are actually being delivered to the Australian consumer. There are basically two main ways that Aussies are being given an electric car discount:

  • Import tariff exemptions

Labor has scrapped import tariffs for certain models of electric vehicles, making electric cars more affordable. Models like the Nissan Leaf, Mercedes Benz EQA and the ever-popular Hyundai Kona will all be 5% cheaper, thanks to the scrapping of import tariffs.

  • FBT exemptions

The words ‘fringe benefits tax’ bring about headaches for both employers and employees, mainly because provided personal vehicles come with a 47-per-cent tax rate through FBT. But luckily, if you want an electric vehicle as an employment benefit, your wishes are Labor’s command; they’ve scrapped FBT for electric vehicles and plug-in hybrids.

Luxury car tax threshold

Both exemptions apply to electric vehicles with a sale price below the the luxury car tax threshold for fuel efficient vehicles ($77,565 in 2020-21). 

How much can be saved?

To answer your question, let’s give you an example. Say you want to get your hands on the stunning new Hyundai Kona – a small SUV with a price tag of $60,000.

First, let’s throw away the 5% import tariff. That should already knock off a cheeky $3,000. Now, let’s say it’s being provided as an employment benefit. The scrapping of FBT for an electric Hyundai Kona will save employers over $10,000… and, since FBT is often handballed (or hand-grenaded, should we say) to employees, the Aussie workforce will directly benefit from this exemption too.

Think about choosing electric

You can expect to save thousands of dollars thanks to Labor’s electric car discount. That being said, you still can’t just walk into the nearest dealership and expect to get the best deal; you have to talk to the right people.

Fingo are Australia’s best team for automotive finance. They help you score a dream finance deal on your dream car. Serving both employers and employees, their expertise range from finance to fleet management. Get in touch with Fingo and step into a greener car, sooner.

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