CPA Australia urges Treasury to let a dealer order lock in the full EV FBT exemption
The accounting body says draft legislation converting the electric car discount into a permanent 25 per cent FBT rate leaves buyers exposed to losing the full exemption through delivery delays they cannot control, and has asked for early milestones like a vehicle order to count as the qualifying commitment.
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What CPA Australia is asking Treasury to change
CPA Australia wants a vehicle order placed with a dealer to be enough to lock in the full electric vehicle fringe benefits tax exemption. In a submission filed on 28 September, the day Treasury's consultation on the exposure draft closed, the accounting body argues the draft legislation leaves buyers exposed to losing the concession through delivery delays they cannot control. AutoTalk Australia reported the submission's central proposal: that a commitment be deemed made if a binding vehicle order has been placed with a dealer before the cut-off, or if a salary sacrifice profile has been approved in writing by the employer, so settlement and delivery can fall later. 1
Accounting Times, which covered the same submission, quotes CPA Australia's view that the exposure draft should be refined to provide clearer transitional rules, align thresholds and indexation settings, preserve access to concessions where commercial commitments have been made in good faith, and apply the 25 per cent discount consistently across valuation methods. The body also flagged clarification around reportable fringe benefits amounts and payroll reporting obligations to prevent unintended adverse outcomes. 2
The phase-down the draft legislates
The draft legislation sets out how the current full FBT exemption for electric vehicles will be trimmed to a permanent 25 per cent discount. According to CPA Australia's own Tax News coverage of the Treasurer's announcement, vehicles costing less than $75,000 keep the full exemption with no changes until 1 April 2029. In the 2027-28 and 2028-29 fringe benefits tax years, electric vehicles costing more than $75,000 but below the luxury car tax threshold, then $91,387, receive a 25 per cent discount on payable FBT. From 2029-30 onwards, all electric vehicles below the luxury car tax threshold receive the 25 per cent discount. 3
Accounting Times describes the transition as running from 1 April 2027 to 31 March 2029, with vehicles provided under commitments made on or after 1 April 2029 able to access only the 25 per cent discount. AutoTalk Australia summarises the mechanics as a two-step move: vehicles over $75,000 shift to the discount on 1 April 2027, and all eligible vehicles follow on 1 April 2029. Vehicles under $75,000 keep the full exemption if a commitment to provide them is made before 1 April 2029. 12
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Why these labels?CPA Australia wants a dealer order to lock in the EV tax break
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Cited in 2 paragraphs: What CPA Australia is asking Treasury to change; The phase-down the draft legislates.
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- Electric vehicle FBT draft laws riddled with issues: CPA AustraliaRole not assessedSource extract saved
Why these labels?Electric vehicle FBT draft laws riddled with issues: CPA Australia
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Why these labels?CPA Australia Tax News | 22 May 2026
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