The last couple of years have been rough for us car-lovers. COVID, semiconductor chip shortage and correlated new car shortage. But when you hit rock bottom, there’s only one way to go: up! And that’s why we were all so stoked when we heard the news about Labor’s EV tax break; it’s probably the best bit of news we’ve heard in a while.

Now, Aussies are flooding their search engines with curious questions about Labor’s latest ‘power move’. But one of the most interesting (and important) is whether these tax exemptions are going to extend to other forms of electric-powered transport. 

Here, the auto experts at Fingo tackle this idea and tell us what to expect:

One step at a time: getting your hands on an electric car

While there’s every possibility that Labor could go ahead and extend their FBT and import tariff exemptions to other forms of electric-powered vehicles, like buses and bikes, we’ve got to take things one step at a time. 

We’re still recovering from the infamous semiconductor chip shortage that plunged us into a global new car shortage in 2020. Since then, it’s been a little difficult to get your hands on an electric vehicle – however, that doesn’t mean it’s impossible.

Other forms of electric vehicles: will they be tax-exempt?

Well, it’s hard to say. Firstly, because we’re not the Labor Party and we don’t call the shots (sadly). And secondly, because FBT treatment of vehicles other than cars has been traditionally quite rigid. 

The ATO’s official statement is that, “In general terms, where an employer provides an employee with a motorcycle as a fringe benefit, it is treated as a ‘residual’ fringe benefit and not a motor vehicle fringe benefit.”

“This means that the FBT treatment of any motorcycle benefit will be different to the FBT treatment of a car fringe benefit.”

Will electric bikes and other modes of EV transport break the chain?

So, you’re now wondering, ‘but what about electric versions of motorbikes and other forms of transport?’ E-motorbikes, e-scooters and electric trucks and buses are undoubtedly going to overtake the combustion engine versions of these vehicles some day or another, so why wouldn’t they be incentivised too?

That’s a completely fair point to make but we still don’t entirely know the answer. While it seems logical and practical to implement tax exemptions for electric motorbikes, scooters, trucks and so on, we don’t know what Labor has in stock for us on that front.

Want to make the most of Labor’s tax breaks for EVs? Fingo are the people to talk to. They’re your team of choice for all vehicle solutions, including finance, fleet management, novated leases, quality insurance or something totally different. Fingo love helping people get the best out of their new ride. 

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