- by foxnews
- 19 Nov 2024
Electric cars are set to become cheaper and government fleets will go green after members of the crossbench struck a deal to pass a Labor bill and phase out public support for petrol-based plug-in vehicles.
Chalmers and energy minister Chris Bowen said in July that the changes could cut the price of some electric vehicles by up to $9,000 for businesses, or $4,700 for individuals buying a car through salary sacrifice. Savings would be backdated to July, and would apply to cars retailing below the luxury car tax threshold for fuel efficient cars of $84,916.
The tax cuts would apply to battery electric, hydrogen fuel cell and plug-in hybrid vehicles. However, progressive crossbenchers had raised concerns over benefits being extended to plug-in hybrid vehicles with petrol motors.
Amendments on behalf of the Greens and Pocock jointly were to be moved in the Senate on Tuesday afternoon.
The changes would see the phasing out of support for petrol-based plug-in hybrids on 1 April 2025. Bandt also said it would prioritise zero-emissions electric vehicles in the government fleet procurement policy, by removing plug-in hybrid vehicles except in exceptional circumstances.
Pocock, who also proposed the sunset clause to government, said taxpayers should not be subsidising petrol cars.
It is understood that the Australian Tax Office would also provide clarifying guidance on where charging infrastructure could also be exempted from fringe benefits tax. The amendments also call on the government to undertake reviews of the legislation after its implementation, including reassessing what types of vehicles should be covered by the FBT discount provisions.
Shortly after the deal was announced, Greenpeace said parliament should go further in addressing emissions from cars by legislating tougher fuel efficiency standards.
with AAP
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