Story perspectives

Australia Extends EV Tax Discount, Adds State Incentives

5/10/2026

Summary

Story summary

Australia’s federal government extended the fringe benefits tax (FBT) discount program to April 2027, with exemption limited to EVs under $75,000 through April 2029.
From April 2027 EVs priced $75,000–$91,387 get a 25% FBT discount until April 2029, after which EVs below the $91,387 car tax threshold keep a 25% discount.
Queensland, New South Wales, Northern Territory and WA offer stamp-duty or registration discounts, and WA provides a $15 million grant for EV charging infrastructure.

History

Historical Context

After the 2009 American Recovery and Reinvestment Act gave U.S. buyers a federal credit of up to $7,500, EV adoption accelerated, highlighted by Tesla reaching 200,000 U.S. sales in 2018. Building on that model, Queensland-backed Australia launched a 2024-2029 fringe-benefits-tax discount for electric cars, extending the incentive tradition to the Southern Hemisphere.

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Story summary

Australia’s federal government extended the fringe benefits tax (FBT) discount program to April 2027, with exemption limited to EVs under $75,000 through April 2029.
From April 2027 EVs priced $75,000–$91,387 get a 25% FBT discount until April 2029, after which EVs below the $91,387 car tax threshold keep a 25% discount.
Queensland, New South Wales, Northern Territory and WA offer stamp-duty or registration discounts, and WA provides a $15 million grant for EV charging infrastructure.

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