In July, the Albanese Government announced their intention to remove the fringe benefits tax (FBT) from electric vehicles (EVs) to allow Australians greater access to battery-operated, hydrogen-fuelled and plug-in cars in their ‘Electric Car Discount Bill’.
Small Business Loans Australia (SBLA), a comparison financing and loan website, found that SMEs responded favourably to the proposal with 40 per cent indicating that they would purchase an EV by the end of 2023, provided the Bill passes in parliament.
The SBLA commissioned survey, found that of the 40 percent of businesses who would be ready to purchase an electric vehicle by the end of 2023, 9 per cent were even willing to purchase this year. Eleven (11) per cent would acquire an EV in 2024, and 15 per cent from 2025 onwards. Disappointingly, 34 percent of business owners reported having no intention of investing in an EV, regardless of whether the Bill passes.
Alon Rajic, Founder and Managing Director of Small Business Loans Australia, says: “The Federal Government understands that the price of EVs has been a major barrier to their adoption in Australia.” The survey found the removal of this barrier will have an enormous positive influence on business purchase decisions.
The Bill applies only to the sale of vehicles priced below the luxury car tax-threshold, which stands at $84,916 for 2022-23. Despite this maximum, the removal of this major barrier is a step in the right direction – pushing Australia closer to its 2050 net-zero target.
The full survey results, including breakdowns across business sizes and States, can be found here: https://smallbusinessloansaustralia.com/resources/electric-vehicles.html
