If you’ve been sniffing around for a good deal on an electric car for some time, you’ve almost definitely heard the news about the Australian Labor Party’s tax break for EVs. 

This news has been music to the ears of many Aussies, from die-hard rev heads to staunch environmentalists. But what does this tax break mean for the average Aussie? What’s in it for you?

Today, the team at Fingo Finance break down the ALP’s decision to make electric cars more affordable.

How is Labor making EVs more affordable?

First, let’s outline what policies Labor is implementing to make EVs cheaper:

  • No more import tariffs for EVs

Labor has exempted certain electric cars from the 5% import tariff. Various models from MG’s ZS EV to the Hyundai Ioniq 5 will become 5% cheaper.

  • No more FBT for EVs

The fringe benefits tax (FBT) is a 47% tax which is slapped onto personal vehicles that are provided by employers to employees. Labor has exempted electric vehicles and plug-in hybrids from FBT.

What’s in it for me?

So, just to confirm, here’s what this means for you:

  • Cheaper EVs upfront

With Labor scrapping import tariffs for certain models of EV, the average Aussie will see a huge benefit when buying a new electric car. Let’s say you want to get your hands on the all-new Hyundai Kona Electric – a car with a $50k price tag. The 5% import tariff is now history, knocking off $2k to make the price $48k, just like that!

  • Far easier to negotiate with employers

In the past, many businesses have been put off providing their staff with personal vehicles. This, no doubt, is thanks to the 47% fringe benefits tax – which, as you know, can be handballed to employees themselves and taken out of their salary. But that’s changing, big time, and it will now get a whole lot easier to negotiate an electric vehicle included in your work benefits.

  • More electric cars on the road

Yep, you can expect to see far more EVs and PHEVs on Aussie roads. From stunning luxury models like the BMW iX to electric versions of favourites like the Hyundai Ioniq, to futuristic hatchbacks like Honda’s emerging ‘e’ model, we’ll have plenty to choose from!

  • More affordable second-hand market

Labor expects the effects to trickle down into the second-hand market too. The more EVs coming into Australia, the more choice and better price for second-hand EVs.

Fingo can help you get into your dream EV sooner and for less money. They’re Australia’s auto finance experts, serving both employers and employees across a wide range of solutions – everything from fleet management to insurance to loans. Talk to Fingo before making your next move!

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