Overview

• The Coalition announced the repeal of Labor's fringe benefits tax exemption for electric vehicles, projected to save $3 billion over the forward estimates.
• Peter Dutton previously stated on Monday that the Coalition had no plans to change the EV tax break, leading to confusion over the sudden policy shift.
• Industry groups, including the Electric Vehicle Council, expressed disappointment and uncertainty over the reversal, citing its impact on emissions reduction and EV affordability.
• The tax exemption, initially forecast to cost $55 million annually, has ballooned to $560 million due to high consumer uptake since its introduction three years ago.
• Dutton continues to insist publicly that no policy change has occurred, despite the Coalition's formal inclusion of the repeal in its campaign savings measures.