Media Release: Rewiring Australia welcomes EV tax break extension

Rewiring Australia has welcomed reports the Federal Government will keep the electric vehicle fringe benefits tax exemption, but warned Australia remains a long way from mass EV adoption.

The full exemption will remain in place for another year before being scaled back from March 2027 for cars over $75,000, reducing to a 25% FBT discount. Cars under this limit will still get the full exemption until April 2029, when the incentive will lower for all EVs to the 25% discount rate.

This is a positive step and one Rewiring Australia pushed hard for in its submission to the Federal Government. 

Rewiring Australia CEO Francis Vierboom said the reprieve showed the government recognised EV incentives still have an important role to play.

“This is good news, but it is not mission accomplished,” Mr Vierboom said.

“Even in a record-setting month, during a national fuel crisis, when filling up an EV costs a small fraction of the petrol equivalent, six in seven new car buyers still chose a petrol car.

“That tells us we are still at the foothills of the switch to electric.

“The FBT exemption has helped more Australians get into EVs and will help build the second-hand market over time, but Australia is still a long way from mass adoption.

“Every new petrol car sold locks in another two decades of oil dependency, higher running costs and emissions.

“The real test is whether Australia can build enough demand, charging infrastructure and affordable supply to make EVs the normal choice for families.

“The task now is not to mistake early momentum for the destination. It is to keep building the conditions for broad change.”