A federal law to cut the price of electric vehicles is one step closer after the Greens and crossbenchers reached a deal with Labor on Tuesday morning to pass the changes within two weeks.
Greens leader Adam Bandt struck a compromise with the government to accept parts of the scheme that offer tax breaks to plug-in hybrid vehicles as well as electric vehicles powered entirely by battery. There could be a discount of up to $9000 for staffers buying EVs as part of their salary package once the bill passes.Senate independent David Pocock will also back the bill after negotiating a sunset clause with the government to phase out some of the benefits in order to focus the incentives on electric vehicles rather than hybrids.
The scheme aims to exempt eligible vehicles from import tariffs in order to cut the retail price for all buyers, and would also spare customers from fringe benefits tax, making them cheaper for employers when included in salary packages for staff. Labor unveiled the plan on May 1 during the election campaign and cited estimates from the Electric Vehicle Council that a $50,000 model such as the Nissan Leaf would be at least $2000 cheaper under changes if import tariffs were removed. It estimated the FBT exemption would save employers up to $9000 a year on vehicle costs.
CroweDM Tax breaks are for those with taxable income only,mind you.The higher the income the higher the tax rebate windfall. The wealthy already buying Tesla's in last 3 years.