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From 1 April 2025, PHEVs will not be eligible for the FBT exemption.
The Federal Government’s ‘Electric Car Discount’ program provides a fringe benefit tax (“FBT”) exemption for novated leases for certain ‘low emissions vehicles’. Since commencement of the program, this has included eligible[1] plug-in hybrid electric vehicles (PHEVs).
From 1 April 2025, PHEVs will not be eligible for the FBT exemption.
Yes, PHEVs will still be eligible for the FBT exemption if:
If these conditions are not met before 1 April 2025, the FBT exemption will not apply.
This is based on the requirements published by the Australian Taxation Office.
Unfortunately, we cannot guarantee PHEV delivery times. We are working with our dealer network to deliver PHEVs before the expiry of the exemption, however delivery times are subject to factors beyond our control.
If you order your PHEV through Smart, you will be able to cancel your order with no cancellation fee if it does not arrive on time.
If you have sourced your own PHEV and wish to cancel your order, you will need to contact your dealer/distributor to discuss whether any cancellation fees are applicable.
If you have not met the conditions before 1 April 2025 and still wish to proceed with your PHEV lease, you should note that your lease payments will be significantly higher, given that the exemption will not apply.
The FBT exemption will apply up until the lease expires or terminates or there are any other changes to your vehicle finance (for example, adding accessories to the vehicle which increases the amount financed), whichever occurs first.
The FBT exemption will also cease to apply if you end your current employment before the end of the lease term or if there is a break in the novated lease (including, for example, periods of unpaid leave).
The FBT exemption will not apply to any lease extensions.
For more information on the FBT exemption expiry for PHEVs, please contact your leasing consultant.
This is general information only. Before entering into any salary packaging or novated leasing arrangement, you should consider your objectives, financial situation and needs, and seek appropriate legal, financial or other professional advice based upon your own particular circumstances. The availability of benefits is determined by your employer. Conditions and fees apply. Smartsalary Pty Ltd, ABN 24 096 796 100, a Smart™ company.
[1] To be eligible for the FBT exemption, plug-in hybrid electric vehicle must be purchased through a novated lease, have a purchase price no greater than the Luxury Car Tax limit ($91,387 in FY 2024-25) and be first registered no earlier than 1 July 2022.