From www.pwc.com.au: The Australian Government will phase out the fringe benefit tax (FBT) exemption for plug-in hybrid electric vehicles (PHEVs) starting 1 April 2025, limiting eligibility to those with a financially binding commitment established before this date.

Employers must ensure that any existing commitments remain intact to retain the exemption, as changes in lease terms or employee assignments may trigger FBT liabilities.

As PHEVs transition out of the exemption, businesses should evaluate their vehicle fleets and consider adjustments to infrastructure and policies for electric vehicles.