At Last – Incentives For Electric Vehicles
Motor Industry Association Chief Executive David Crawford says that after several years of calling for incentives for low emission vehicles the Minister of Transport Michael Wood has today announced their introduction.
We are delighted that at last the Government has confirmed details of their introduction.
We are also pleased that the Government has had the foresight to bring in an interim rebate from 1 July this year for EVs and PHEVs while it takes time to put in place the regulatory law required for a full feebate scheme which will come into effect in 2022.
The level of rebate offered is significant. It will in our view address in part the lack of affordability new low emission vehicles cost compared to their internal combustion engine (IEC) equivalent models.
The rules around allowing the discount when calculating fringe benefit tax (FBT) and depreciation will go some way to addressing barriers to uptake of low emission vehicles by businesses. However, it stops short of the 50% reduction in FBT for electric vehicles we have consistently called for.