A fleet management organisation has welcomed the move by the Australian Tax Office to raise the luxury car tax thresholds for ‘fuel efficient vehicles’ from July 1, 2023.
Fleetcare chief executive officer Nigel Malcolm says the move will encourage more businesses and individuals to consider electric vehicles.
The LCT threshold for ‘fuel efficient’ vehicles will be raised from $84,916 to $89,332, and the LCT threshold for all other vehicles will increase from $71,849 to $76,950.
“It’s great news for car buyers especially consumers looking to purchase electric vehicles,” Malcolm says.
“Many more models will now be considered eligible for the FBT Exemption under the Electric Car Discount Bill.”
The Electric Car Discount Bill removes import tariffs and Fringe Benefits Tax (FBT) on eligible vehicles. Electric vehicles must meet several criteria to be eligible, with one criterion being that Luxury Car Tax (LCT) has never been payable on the importation or sale of the car.
The car’s value as at the first retail sale must be below the fuel-efficient vehicles’ Luxury Car Tax (LCT) threshold, being $89,332 in the 2023/24 income year, and in any subsequent sale.
“We have seen a significant increase in the amount of electric vehicle enquiries since the introduction of the FBT Exemption,” Malcolm says.
“With more models falling below the new LCT thresholds including the Tesla Model 3 Performance Model, the Hyundai IONIQ 5, and the Kia EV6 GT-Line, we expect to see even more Australian business and drivers consider making the switch,” he says.
Fleetcare is an independent fleet management and leasing provider, managing more than 42,000 assets Australia-wide. Established in 1989, it provides solutions for both public and private sector organisations.
