As the demand for electric vehicles (EVs) continues to rise in Australia, businesses are becoming increasingly interested in taking advantage of the Federal Budget’s First Home Super Saver (FHSS) and the First Home Owner (FHOG) schemes. However, one scheme that often flies under the radar is the EV FBT Exemption, which allows businesses to save on tax when purchasing a new electric vehicle. At Fingo, we specialise in providing innovative finance solutions for individuals, small businesses, and enterprises, and we’re here to help you maximise your EV FBT Exemption and make the most of your tax breaks.
With the increasing cost of living and rising costs for businesses, it’s more important than ever to find ways to save on tax and reduce financial risks. By leveraging the EV FBT Exemption, businesses can reduce their FBT liabilities and put more money back into their pockets. But, understanding the rules and regulations around this scheme can be complex and time-consuming.
What is the EV FBT Exemption?
The EV FBT Exemption is a tax concession that allows businesses to claim a reduction in their Fringe Benefits Tax (FBT) liabilities when providing a new electric vehicle to employees. This concession was introduced as part of the 2017-2018 Federal Budget to encourage the adoption of electric vehicles and reduce emissions.
Under the scheme, businesses can claim an exemption from FBT on the cost of providing a new electric vehicle to employees, as long as the vehicle is used for work-related purposes. This means that businesses can save on FBT liabilities and put more money back into their pockets.
How Does the EV FBT Exemption Work?
So, how does the EV FBT Exemption work? Here’s a step-by-step guide to help you understand the process:
The business purchases a new electric vehicle for use by employees.
The vehicle is registered and approved for use by the employer.
The employer completes the relevant sections of the FBT return and claims the exemption.
The ATO reviews and assesses the claim, and if approved, the business is entitled to the exemption.
Benefits of the EV FBT Exemption
So, what are the benefits of the EV FBT Exemption? Here are just a few:
Reduced FBT liabilities: By claiming the exemption, businesses can reduce their FBT liabilities and put more money back into their pockets.
Increased tax savings: The EV FBT Exemption can result in significant tax savings for businesses, especially those with a high number of employees.
Encourages the adoption of electric vehicles: The EV FBT Exemption incentivises businesses to adopt electric vehicles, reducing emissions and supporting the government’s environmental policies.
Fingo: Your Partner in EV FBT Exemption
At Fingo, we understand the importance of making the most of tax concessions like the EV FBT Exemption. That’s why we’re here to help you navigate the complex rules and regulations around this scheme. Our team of experts will work with you to understand your business needs and develop a tailored finance solution that suits your specific requirements.
How Fingo Can Help
At Fingo, we offer a range of finance solutions to help you make the most of the EV FBT Exemption. Here are just a few ways we can assist:
Best price guarantee: We’ll work with you to find the best price for your new electric vehicle, ensuring you get the most for your money.
Personalised service: Our team of experts will work with you to develop a tailored finance solution that meets your business needs.
Comprehensive package: We’ll provide you with a comprehensive package that includes vehicle financing, insurance, and ongoing maintenance support.
Conclusion
The EV FBT Exemption is a tax concession that offers significant benefits for businesses looking to adopt electric vehicles. By understanding the rules and regulations around this scheme, businesses can reduce their FBT liabilities and put more money back into their pockets. At Fingo, we’re here to help you navigate the complex rules and regulations around the EV FBT Exemption and make the most of this tax concession.
If you’re interested in learning more about the EV FBT Exemption or would like to discuss a potential finance solution with our team, contact us today to schedule a consultation.