$3bn taxpayer cost revealed for Australia's electric car discount scheme
More than 100,000 electric vehicles have been purchased through the government scheme, costing taxpayers over $3 billion in lost fringe benefits tax revenue since 2022.
Australia faces a period of limited availability as demand for electric vehicles (EVs) under the novated lease discount scheme approaches supply limits. Over 100,000 EVs have been sold through this program since 2022, resulting in more than $3 billion in lost fringe benefits tax revenue for taxpayers. Last financial year alone saw $1.35 billion in foregone revenue due to the scheme's popularity.
The discount allows employees and their associates to finance and operate EVs using pre-tax income without business usage calculations or logbooks. While no specific sales figures were provided for the upcoming period, the scheme's maximum vehicle price is capped at $91,661 GST inclusive, tied to the low-emissions luxury car threshold. Critics note the benefits primarily assist upper-middle-class individuals.
Demand has surged following rising oil prices and increased competition from low-cost Chinese EV manufacturers. The government acknowledges time is running out for buyers before the scheme's eligibility window closes.
