TV campaign to save the FBT tax exemption launches: EV sales at stake warn backers
Australia’s peak body for novated leasing has launched a campaign urging the Federal Government to retain the Electric Car Discount as the policy undergoes a statutory review.
The National Automotive Leasing and Salary Packaging Association (NALSPA) said its “Keep the EV Tax Discount” campaign will run across digital and television advertising, highlighting the role the incentive has played in accelerating electric vehicle uptake through novated leasing.
A range of organisations and companies have signed on in support of the campaign, including Autoleague, Automotive Leasing, BYD, EV Dealer Group, the Electric Vehicle Council, First Nations Finance, GWM, Pepper Money, Polestar, Rewiring Australia, Tesla and Unisson Disability.
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NALSPA chief executive Rohan Martin said the campaign aims to highlight the impact the policy has had on EV adoption among Australian workers.
“The Federal Government is reviewing the EV Discount, and working Australians deserve to know what’s at stake,” Martin said.
“We also want to remind the Federal Government how effective this policy is in driving EV uptake and reducing costs for everyday working Australians.
“Tens of thousands of everyday working Australians, many of whom are living in the outer suburbs, have made the switch to EVs with the help of this Discount and they wouldn’t have without it.”
Introduced in 2022, the Electric Car Discount removes fringe benefits tax (FBT) from eligible electric vehicles purchased through novated leasing arrangements and also removed import tariffs on EVs.
The policy has been credited with boosting EV uptake in Australia, with almost 100,000 vehicles benefiting from the FBT exemption since its introduction.
However, the incentive is currently under review by the federal government, with Treasury examining its effectiveness and cost as part of a broader assessment of EV policy settings.
The review comes amid growing debate across the automotive industry about whether the subsidy should be retained, modified or scrapped altogether.
Some manufacturers and industry figures have argued the market should determine EV adoption without government incentives.
Kia Australia chief executive Damien Meredith recently said the FBT exemption should be removed, arguing that “less interference by the government” would allow competition to drive the transition to electric vehicles.
Speaking recently to EV Central BYD Australia COO Stephen Collins explained why it backed the campaign and the retention of the exemption.
“It’s all about EV adoption,” he said.
“In the long, long term, I think the market dictates and the market decides.
“But I think there’s clear evidence that there’s tens of thousands of people who would not be driving an EV if there wasn’t the EV exemption through Novated.”
NALSPA said decisions about the future of the Electric Car Discount would have significant implications for Australian households considering the switch to electric vehicles.
“Any decision made on the EV Discount affects everyday Australians – the workers who are benefiting right now and the many more who could miss out,” Martin said.
