Moving commercial fleets to electric vehicles (EVs) is crucial to the Labor government’s National Electric Vehicle Strategy, according to renewable energy transformation experts at management consultancy, Partners in Performance.
Labor is leading the way with policy changes and investments to boost the uptake of EVs. Apart from pledging that its fleet purchases and leases will be 75 per cent electric by 2025, two main factors stand out from Labor’s recent announcement – the Fringe Benefits Tax (FBT) and salary sacrifice.
There will now be $345 million allocated to the Electric Vehicle Discount, exempting eligible EVs from the FBT and the five per cent import tariff. This translates to savings of $9,000 a year on a $50,000 EV for an employer, or savings of $4,700 for an individual on a salary sacrifice arrangement.