Tell Treasurer Jim Chalmers: Don’t price everyday families out of EVs
As fuel prices soar, Treasurer Jim Chalmers is threatening to axe the salary-packaging rules that make electric vehicles affordable for everyday drivers.
Update: thanks to community pressure, the Albanese Government announced in the May budget that EV car discount would be extended until 2029. This is big! However from May 2029 the 100% FBT discount will be reduced to only 25%. So while this is good news for drivers making the switch right now, we must keep the pressure on to make sure the Albanese Government replaces the EV car discount with other policies to help families afford the switch to electric.
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By removing or reducing the EV discount from salary packaging rules, the government will make electric cars thousands of dollars more expensive overnight.
Salary packaging (also known as novated leasing) is how many of us could afford to go electric in the first place. It’s a practical cost of living policy that actually works.
It helps families manage the upfront cost of an EV so they can then access the benefits: lower running costs and a permanent escape from volatile fuel prices.
Changing the rules won’t just hurt those thinking about making the switch, it could impact those who’ve already salary packaged their car:
“Tens of thousands of electric vehicle drivers with novated leases would be hit with thousands of dollars in out-of-pocket costs when they change jobs if the Albanese government extends cuts to its signature EV tax break.” - AFR, 16 March
It’s not fair for drivers and it’s not helpful in a fuel crisis.
But it’s not too late to stop it.
If enough EV drivers speak up before the budget, we can show Treasurer Jim Chalmers that cutting the EV car discount now would be a mistake.
Add your name, and tell Treasurer Jim Chalmers to keep EV’s affordable and don’t penalise drivers for trying to lower their transport bills.
SIGN THE PETITION
To: Treasurer Jim Chalmers
Don’t cut the EV car discount.
Signed:
FAQs
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Current federal rules exempt eligible electric vehicles from Fringe Benefits Tax when accessed through a novated lease. This means everyday workers can pay for an EV and its running costs out of their pre-tax salary. It’s a hugely successful policy that has helped over 100,000 Australian drivers switch to an EV.
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The federal government has confirmed it is reviewing the policy ahead of May’s budget. Treasurer Jim Chalmers may decide to abolish the EV discount, reduce it, or if enough of us speak up, leave it untouched.
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It depends on your vehicle and income bracket, but a result of the FBT exemption, drivers save upward of $5,000 a year on an EV valued at $60,000.
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They are looking for budget savings. But penalising drivers trying to lower their household transport bills is the wrong move.
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This policy drives the entire Australian EV market. By incentivising novated leases and fleet purchases the rules bring more vehicles into the country. This leads to further investment in the public chargers we all rely on. The policy also helps drive a more robust second-hand market when those leases end after three or four years. Changing these rules will mean fewer EVs on the road.
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Absolutely. Hundreds of thousands of Australians drive electric. The government treats us like an easy target for revenue because we haven't had a unified voice. By adding your name you are showing the Treasurer that everyday families are paying attention and will not accept being priced out of affordable transport.
A campaign by EV Drivers Australia
EV Drivers Australia is made up of teachers, nurses, tradespeople, and families who went electric.
There are 500,000+ Australians like us who drive electric. We made the smart choice for families, our wallets, and the long term. Now we're organising to make sure the policies that affect us are shaped by us, not decided without us.
When governments make decisions about EV taxes, charging, and affordability, we should be in the room.
EV Drivers Australia is an initiative of Solar Citizens.
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