Overview
- Federal Budget papers released Tuesday scale back the electric vehicle Fringe Benefits Tax exemption, raising an extra $1.9–$1.95 billion over four years and phasing in a $75,000 price cap from April 1, 2027 before shifting all eligible EVs to a permanent 25% FBT discount from April 1, 2029.
- The three-month halving of the fuel excise ends on July 1, 2026 after costing $2.9 billion in forgone revenue, with Treasury projecting a 24% rebound in excise takings next financial year as the full rate returns alongside the heavy vehicle road user charge.
- The government is not introducing a national per‑kilometre charge on EVs now and will keep working with states on a design, a stance shaped by the 2023 High Court ruling that put such taxes in federal hands.
- Targeted funding includes $40 million over four years for regional and kerbside chargers, $40.5 million to electrify Australia Post’s delivery fleet, and a $15.4 million extension of the DRIVEN program to train and equip dealers and repairers.
- April sales data show EVs at over 16% of new deliveries, or about 26.7% with plug‑in hybrids, and budget papers cite a $3.35 billion blowout from the original FBT exemption as the reason to dial back broad tax support while keeping infrastructure and industry readiness moving.