Overview

• The Coalition confirmed plans to repeal Labor's fringe benefits tax (FBT) exemption for electric vehicles, citing $3 billion in savings for defence spending.
• Opposition Leader Peter Dutton denied any policy change, despite earlier statements indicating no plans to alter the tax break.
• Nearly 100,000 motorists have benefited from the FBT exemption since its introduction in 2022, with costs ballooning from $55 million to $560 million annually.
• Industry groups warn that repealing the tax break could increase EV lease costs by $3,500 to $4,700 annually, disproportionately affecting suburban families.
• The policy shift has drawn criticism from EV advocates, who argue it undermines cost-of-living relief and progress toward cleaner transportation.