Federal Budget Ev Incentive Changes: Labor Locks 25% EV FBT Discount
Federal budget ev incentive changes made the Electric Car Discount permanent at a 25 per cent fringe benefits tax discount, locking in a key concession for electric vehicles. The shift keeps support in place for cheaper EVs while reducing the long-term cost of the policy.
More than 100,000 electric vehicles have already been supported through the scheme, according to the government. For buyers and employers using salary packaging, the budget keeps the tax treatment intact rather than letting the concession fade back toward a narrower incentive.
2022 Electric Car Discount
The Electric Car Discount was introduced in 2022, and the latest budget changes those arrangements into a permanent 25 per cent fringe benefits tax discount. The policy remains aimed at the more affordable end of the market, which is the segment most likely to rely on a concession to close the gap with petrol vehicles.
The government said the change is meant to reduce the long-term cost of the policy while still supporting EV uptake. That trade-off leaves the concession in place, but with a clearer fiscal ceiling than a broader rebate program would have carried.
More than 100,000 EVs
More than 100,000 electric vehicles have been supported through the scheme, giving the budget a built-in base of users before the new permanent setting takes effect. That scale also shows why the concession drew attention before budget night, when reports pointed to a possible wind-back of generous fringe benefits tax treatment for EVs.
The budget did not add a major new household electrification rebate package. Instead, it continued the government’s push toward batteries, EVs, charging infrastructure and energy market reform, with the EV change sitting inside a wider energy transition agenda rather than standing alone.
Household energy market reforms
The budget also flags reforms aimed at letting household solar and battery systems participate more directly in Australia’s energy market. The government says those changes are intended to improve competition and unlock further renewable energy investment, while household energy storage and distributed renewable energy remain central to the broader plan.
$85.2 million is being invested to speed up assessment of migrants with trades, a move designed to increase the supply of electricians, plumbers and refrigeration mechanics needed to install solar, batteries, hot water and air conditioning. For solar and battery installers turning over less than $10 million, the ability to instantly write off business purchases under $20,000 has become permanent, after it had been set to expire on June 30, 2026 and revert to $1,000.
The result is a budget that keeps EV support in place while tightening the cost of the incentive over time. Buyers of cheaper electric vehicles still have the concession, but the policy now sits inside a larger energy strategy built around electrification, energy sovereignty and lower exposure to imported fuel shocks and global energy price volatility.
