Is Now the Time to Go Green!

Time to Go Green!

Hello Chasers,

If you are an employee able to salary package or business owner operating in a company or trust and looking to upgrade your car, now may possibly be a good time to consider going green with your vehicle choice.

The Labor Government’s first budget a couple of weeks ago delivered on their commitment to climate change when they introduced legislation to exempt certain eligible electric vehicles from fringe benefits tax. In fact, the Bill has already passed the House of Representatives and is currently before the Senate.

By removing the FBT on eligible electric cars employees can use their pre-tax salary (through a salary sacrifice arrangement) to fund the lease of a car for private use without having additional amounts deducted from their salary to fund the FBT rules.

A car benefit is an exempt fringe benefit (i.e. not subject to FBT) if:

  • the car is a zero or low-emission vehicle (i.e. battery electric vehicles, hydrogen fuel cell electric vehicles and plug-in hybrid electric vehicles)
  • the car is first held and used on or after 1 July 2022, and
  • the value of the car at the first retail sale (GST inclusive) was below the luxury car tax threshold for fuel-efficient vehicles ($84,916 in the 2022/23 tax year). In other words, if the luxury car tax is applicable, the car benefit cannot be an exempt fringe benefit and FBT is payable.

For business owners, it gets even more attractive …

Click here to read more …

Read more of our daily blogs in our Chasing the Dream Facebook Community

Share This

Related Posts

Featured
4 Min Read

Gamma.app – the Future of Content Creation?

Hello Chasers, I will be conducting an online masterclass for a business group of property development entrepreneurs next month and need to prepare a presentation. At last weeks business conference in Sydney, a tech tool that…
Read Full Article
Featured
4 Min Read

Blast Off to Business Success: Systemise Your Way to the Stars!

Hello Chasers, Remember Neil Armstrong’s moonwalk?  One small step for him, one giant leap for systematized missions! Just like spaceships, your business needs systems to navigate the cosmos of success. Don’t let your venture crash and…
Read Full Article