Axe the EV tax exemption! While others want an extension of the FBT subsidy, Kia says it should be scrapped
While car companies and auto industry organisations call for the FBT exemption for electric vehicles to be extended, the leader of one of Australia’s biggest EV brands says it should be scrapped.
Kia Australia CEO Damien Meredith said market forces should determine the sales success of EVs.
“I’m a believer in competition,” he told EV Central.
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“I’m a believer in that the best thing for the consumer is, especially in the motor industry, is less interference by the government.”
The FBT exemption for EVs priced under the Luxury Car Tax and purchased via a novated lease is estimated to have encouraged the sale of more than 100,000 vehicles since the introduction of the Electric Car Discount in 2022.
It is now subject to a statutory review by the federal government, led by the Australian Centre for Evaluation, which is located within the Commonwealth Treasury, with the Department of Climate Change, Energy, the Environment and Water also contributing.
Meredith’s stance is perhaps surprising as Kia was the number three EV seller in the country behind only Tesla and BYD in 2025.
But he says he is only being consistent with his beliefs.
“I think there shouldn’t be any government intervention in regards to EVs and it can work by itself,” he declared. “I said that at the beginning … And the proof’s in the pudding.
“What’s happened with competition, and competition’s great. You should never be scared of competition. That’s happening.
“We’re getting product in, lots of EV product from lots of different manufacturers. And that’s good for the consumer. And I think in the long term it’ll be good for Australia.”
More than 100,000 EVs were sold in a calendar year in Australia for the first time in 2025 and Kia accounted for 8001 and one of them.
That was its best-ever sales EV result, but well shy of its 11,000 target for the year.
Kia has already signalled a further expansion of its EV line-up in Australia in 2026.
“We’re in a fortunate situation that we’ve got a product line-up that can compete,” said Meredith.
“So we’re competing okay at this point in time, but we can do better.”
While opposing the continuation of the FBT exemption, Meredith backed the NVES CO2 reduction scheme that is intended to encourage the uptake of EVs and the gradual strangling of ICE vehicles.
“I’m quite happy that there’s NVES in play because that gives certainty,” Meredith said.
Meredith also backed the introduction of a road user charge that is being proposed as a way to maintain revenue from road users as EV numbers increases and petrol sales – and therefore tax receipts – go down.
“I don’t know what the silver bullet is, but the government has to look at it in simplistic terms rather than making it complex, so we all understand it,” he said.
“But it’s got to be equitable.”
