Next week’s budget will contain cutbacks to the concessional treatment of electric vehicles (EVs) that will save the government $1.7 billion over the budget period.

Announcing the changes to the Fringe Benefit Tax (FBT) exemption for EVs, Treasurer Jim Chalmers and Energy Minister Chris Bowen said the new rules would encourage manufacturers to offer EVs to the Australian market that were more affordable and cheaper to run.

The phased-in reductions will move to a permanent 25% discount of FBT for these cars. They won’t affect existing leases.

in phase one, the existing discount will continue until the end of March next year. Under this discount there is no fringe benefit tax on eligible EVs.

in phase one, the existing discount will continue until the end of March next year. Under this discount there is no fringe benefit tax on eligible EVs.

in the second phase, between April 1 2027 and April 1 2029, the........

© The Conversation