Report: Tax Breaks for EVs, E-bikes, Transit Top Fuel Chaos Defense

The National Automotive Leasing and Salary Packaging Association (NALSPA) has strongly endorsed the findings of the Climate Council's latest report, which identifies the importance of continuing the fringe benefits tax (FBT) exemption to drive EV uptake, and recommends extending it to shared and active transport as a priority in the Federal Budget. NALSPA CEO Rohan Martin said the Climate Council's new report, 'Pedal to the Metal - A Budget to Break Free from Fuel Chaos,' reflects data seen across the novated leasing sector, proving the Albanese Government's FBT exemption (EV Discount) is enabling many Australian workers to consider and afford an EV, reducing pollution and shielding households from surging global fuel prices. The Climate Council has recommended 'Immediate Budget Opportunities' including ensuring the FBT exemption continues in order to support EV uptake, and extending the exemption to shared and active transport, notably public transport fares and e-bike leasing. Separate NALSPA analysis has found that workers could save an immediate $1,725 each year through an e-bike FBT exemption, and $690 each year with a public transport FBT exemption. "The Climate Council's new report confirms what we are seeing across the leasing sector: the Electric Car Discount is an essential cost-of-living measure for everyday working Australians," Mr Martin said. "With volatile global fuel prices and cost-of-living pressures mounting, changing the Electric Car Discount would further expose Australians to oil markets when they need relief the most. As drivers face soaring petrol prices, data shows everyday EV drivers on novated leases can already save an average of $289 a month compared to those driving petrol cars. "The Climate Council report underscores this macro benefit, revealing that EV and hybrid drivers avoided a staggering $50 million in fuel price spikes in March alone. This is real money staying in the pockets of Australian families." Mr Martin said the Government should build on the success of its Electric Car Discount policy by extending similar tax settings to lower-cost transport options, including e-bikes and public transport. "The same system that is helping Australians access cleaner cars can also be used to make everyday commuting cheaper," he said. "Extending targeted FBT relief to e-bikes and public transport would deliver immediate cost-of-living benefits, reduce congestion, and support practical emissions reduction, particularly for workers in outer metropolitan areas. "The Electric Car Discount has shown that well-designed tax settings can shift behaviour and support households at the same time. Extending that approach to e-bikes and public transport is a logical next step." NALSPA's data shows the strongest uptake of the EV tax discount is occurring in outer suburban areas, including Werribee and Craigieburn in Victoria, Kellyville and Marsden Park in New South Wales, and Springfield in Queensland. "This policy is working exactly as the Government intended," Mr Martin said. "The Electric Car Discount is helping registered nurses, teachers, charity workers, and families in the outer suburbs make the transition to electric vehicles - people who would otherwise be locked out of the EV market. "There is now a clear consensus between the environmental, climate and automotive leasing sectors. To ensure everyday Australians aren't left behind in the transition and remain shielded from international fuel chaos, the Federal Government should protect the FBT exemption in the upcoming May Budget."