Motor Industry Association Chief Executive David Crawford says that after several years of calling for incentives for
low emission vehicles the Minister of Transport Michael Wood has today announced their introduction.
We are delighted that at last the Government has confirmed details of their introduction.
We are also pleased that the Government has had the foresight to bring in an interim rebate from 1 July this year for
EVs and PHEVs while it takes time to put in place the regulatory law required for a full feebate scheme which will come
into effect in 2022.
The level of rebate offered is significant. It will in our view address in part the lack of affordability new low
emission vehicles cost compared to their internal combustion engine (IEC) equivalent models.
The rules around allowing the discount when calculating fringe benefit tax (FBT) and depreciation will go some way to
addressing barriers to uptake of low emission vehicles by businesses. However, it stops short of the 50% reduction in
FBT for electric vehicles we have consistently called for.