Australia News

Australia Winds Back EV Tax Breaks Amid $12.3 Billion Net Zero Pledge

The ‘free ride’ for electric vehicle incentives is nearing the end of the road.
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Australia Winds Back EV Tax Breaks Amid $12.3 Billion Net Zero Pledge
A Tesla is seen charging in Queensland, Australia, on Sept. 27, 2024. Melanie Sun/The Epoch Times
Monica O’Shea
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Electric vehicle owners are facing a notable shift in the cost of going green, as the federal government moves to rein in tax incentives that have underpinned a surge in local sales.

Treasurer Jim Chalmers has confirmed in the 2026-27 Budget that the government will scale back the Fringe Benefits Tax (FBT) exemptions for EVs. The decision comes after the cost of the scheme ballooned from an initial $90 million estimate to a projected $1.35 billion.

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Monica O’Shea
Monica O’Shea
Author
Monica O’Shea is a reporter based in Australia. She previously worked as a reporter for Motley Fool Australia, Daily Mail Australia, and Fairfax Regional Media. She can be reached at monica.o'[email protected]