Australia: Revised fringe benefits tax exemptions for plug-in hybrid vehicles effective April 2025

Vehicles exempt before April 2025 can still qualify for exemption

Share
October 10, 2024

The Australian Taxation Office (ATO) on October 7, 2024, released updated guidance providing that as of April 1, 2025, plug-in hybrid vehicles (PHEVs) will no longer qualify as zero or low emissions vehicles for purposes of fringe benefits tax (FBT) exemptions. However, employers can still apply the exemption if:

  • The PHEV was exempt from FBT before April 1, 2025
  • There is a financially binding commitment to continue providing private use of the vehicle to an employee or their associate on and after April 1, 2025

The ATO specifies that any changes to a pre-existing commitment made on or after April 1, 2025, will result in the loss of the FBT exemption for the PHEV from the date of the new commitment.

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's . Privacy Statement

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline