In his address to the National Press Club, the Minister for Climate Change, Chris Bowen, confirmed that when Parliament resumes in late July, the legislation which implements the electric vehicle discount will be introduced. According to the ALP policy on the Electric Car Discount, the measure will start from 1 July 2022 and involves exempting many electric cars from:
Import tariffs – a 5 per cent tax on some imported electric cars
Fringe benefits tax – a 47 per cent tax on electric cars that are provided through work for private use.
The exemptions will be available to all electric cars below the luxury car tax threshold for fuel efficient vehicles ($77,565 in 2020-21).
As Parliament does not sit until late July, the Government will ask the ATO to make the tax cut retrospective in accordance with usual procedure. The ATO website has guidance on what to do with the announcement of proposed retrospective legislation while the legislation has not been enacted.
Please call if you would like to discuss this further.
Regards, VJC Accounting
General Advice warning: the information in this article is general in nature, it is not advice specific to your needs. If you want to act upon the information in this article, then you should seek advice from a qualified professional. VJC accepts no liability to any party for acting from this information unless they have sought advice in a formal engagement with VJC for this purpose.
