6th July, 2022 · News

Minister Bowen Confirms Plans for EV
Tariff and FBT Removals

< 1 minute to read

In a speech delivered at the National Press Club on Wednesday 29 June, Minister for Climate Change and Energy, Chris Bowen confirmed his plans to introduce legislation to support the removal of tariffs and FBT on certain EVs below the Luxury Car Tax threshold.

Minister Bowen said:

“When Parliament resumes in late July we will be introducing two pieces of legislation which will progress the agenda for which we received a mandate on May 21.

Firstly, the Treasurer and I will take through legislation which implements our electric vehicle tax cut. We promised to cut the tariffs and abolish fringe benefits tax on affordable EVs from 1 July this year and that’s exactly what we will do.

Of course, the Parliament doesn’t sit until late July, and so we will ask the Tax Office to make the tax cut retrospective, in accordance with usual procedure.”

Minister Bowen also mentioned development of Australia’s first National Electric Vehicle Strategy.

AADA is looking forward to a comprehensive EV strategy consultation, including a full discussion regarding reforming this heavily taxed sector.