RACQ welcomes electric vehicle tax exemption
Queenslanders looking to get an electric vehicle can now save thousands of dollars every year thanks to the fringe benefit tax incentives now passed in the Senate.
RACQ General Manager Advocacy Joshua Cooney said the measures would help boost the fleet of EVs in Australia.
“This is a significant move from the Federal Government,” Mr Cooney said.
"It will make a difference in making EVs more attainable and affordable.
“Piece by piece, Governments are making decisions that help turn the dial on this important transition. Eligible electric vehicles will be exempt from Fringe Benefits Tax (FBT) which will save employees looking to salary sacrifice a mid-size EV $4,700 a year,” Mr Cooney explained.
“If motorists pair this with the Queensland Government’s $3,000 rebate on eligible EVs, they could save $7,700 in the first year alone.
“Over a three-year lease, the savings jump to $17,100, which is significant.”
Exact savings vary depending on income and car value.
Mr Cooney said the EV tax exemption was a step in the right direction.
“Not only are EVs more sustainable modes of transport but running costs could be up to 90% cheaper than a petrol car,” he said.
“We hope these changes will mean existing electric car owners will be incentivised to sell their electric car and lease a new one - increasing the number of more affordable electric cars in the market.
“We need to get more models into the market – particularly the second-hand market. The most affordable electric car will be a second-hand one.
“But incentives are only part of a big picture.
"Incentives make EVs more affordable, but we need policies that will make them more available.
“We also need more education to change consumer attitudes and increased investment in charging infrastructure, to ease the range anxiety people have, particularly in a state as vast as Queensland.”
The exemption will apply retrospectively to cars leased from 1 July 2022.
RACQ covered incentives and other key policy areas in its submission to the Federal Government’s consultation on the National Electric Vehicle Strategy which can be found here.
For a summary on the Club’s position on electric vehicles read more here.
Related topics
-
The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.
Insurance products (excluding Travel Insurance) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQ). Conditions, limits and exclusions apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the PDS and any applicable Supplementary PDS before making a purchase decision on this product. You can also access our Target Market Determinations on this website.
Banking and loan products issued by Members Banking Group Limited ABN 83 087 651 054 AFSL/Australian credit licence 241195 trading as RACQ Bank. Terms, conditions, fees, charges and lending policies apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the disclosure documents for your selected product or service, including the Financial Services Guide and the Terms and Conditions, and consider if appropriate for you before deciding.
Except for RACQ Bank, any RACQ entity referred to on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity’s obligations do not represent deposits or other liabilities of RACQ Bank. RACQ Bank does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.
RACQ Operations Pty Ltd (ABN 80 009 663 414 AR 000234978) and Members Travel Group Pty Ltd (ABN 45 144 538 803 AR 000432492) are acting as an Authorised Representative of the issuer of the insurance, Tokio Marine & Nichido Fire Insurance Co., Ltd. (ABN 80 000 438 291 AFSL 246 548). Any advice set out above is general in nature only, and does not take into account your objectives, financial situation or needs. Before purchasing any travel products, please consider the RACQ Travel Insurance Product Disclosure Statement (PDS) and the Target Market Determinations (TMDs) that apply to these products. Whilst the PDS outlines the Terms and Conditions of these products, the TMDs outline the intended class of customers that comprise the target market for these travel products. This will allow you to consider which products best suit your objectives, financial situation and needs and consider the products appropriateness to your personal circumstances. TMDs also outline matters involving the distribution and the review of these products. The PDS, Supplementary PDS and TMDs for each travel product can be found here.