logo
Another hit for EV drivers as popular $13,000 tax break is under fire

Another hit for EV drivers as popular $13,000 tax break is under fire

Yahoo24-04-2025
Electric vehicle (EV) groups are furious over Peter Dutton's backflip on removing the fringe benefits tax (FBT) for new-age cars. The Opposition leader said earlier this week the Coalition wouldn't get rid of the generous handout for Aussies buying an EV.
But two days later, the Liberal party leader said the multi-million dollar Labor scheme would be dropped if he won the May 3 election. The rebate allows drivers to deduct the cost of an electric vehicle from fringe benefits tax if it was bought through a novated lease and does not exceed the value of $91,387.
Sydney Tesla driver Tom Gao bought his 2025 Model Y Juniper thanks to the FBT exemption and told Yahoo Finance the policy was a big factor in his purchase.
"I would not be buying an EV if FBT exemption is removed," he said.
Electric Vehicle Council CEO Julie Delvecchio was "extremely disappointed and confused" Australians could lose important financial assistance that allowed them to reduce ongoing costs by purchasing an electric vehicle.
RELATED
Tesla's $1.54 billion 'horror show' as Elon Musk cops backlash from 'changing political sentiment'
Centrelink's blunt warning over $1,200 'one-off' cost-of-living payment: 'Be mindful'
ATO's $24,097 tax blow for every Aussie worker
'The FBT exemption is incredibly popular among Australians living in the outer suburbs and helping many Australians across the country afford and manage the upfront cost of an EV, which we know is cheaper to run once you're behind the wheel," Delvecchio said.
'If the Coalition wants to make cars cheaper, and driving cheaper during a cost-of-living crisis, it wouldn't be removing this discount for Australians.'
Gao said he feared there would be a "significant drop in EV purchases" if the scheme was scrapped.
"If you look at uptake of EVs in countries like Norway, it's completely driven by government incentives," the Sydney driver said.
"That's the case across the world."Australians can shave thousands of dollars off the cost of an electric vehicle using the rebate.
The program, which was introduced by the Albanese government in 2022, had been extended to cover plug-in hybrid electric vehicles, but that exemption ended up April 1.
Now, you can deduct the cost of an electric vehicle if:
the EV was worth less than $91,387
the car was bought with a novated lease
A novated lease allows an employee to buy a new or used car and have their employer cover the cost of lease repayments to an agreed financial supplier.
The employer makes the repayments to the leasing company out of the employee's pre-tax salary in a salary sacrifice arrangement, which reduces the employee's taxable income.
For example, if a worker secured a $68,000 EV through a novated lease through their company, they could save around $13,296 thanks to the exemption.
Treasury forecast the policy would cost taxpayers $55 million in the 2024-25 financial year.
But recent figures from the Institute of Public Accountants found it cost closer to $560 million per year.
Drivers of traditional petrol or diesel fuel, an internal combustion engine vehicle (ICE), have claimed electric vehicle drivers are given unfair cost advantages.
Gao said he found the policy generous and had predicted it to be short-lived.
"If you look at the numbers, it's so outrageous in terms of incentives towards EV owners," he said.
"To some degree, I think it's extremely unfair for ICE owners."
During the election campaign, the Coalition had advised the tax exemption was too costly to continue.
However, on Monday Dutton said: 'No... We don't have any proposals to change those settings."
Cut to Wednesday and the tune was a little different.
'The Coalition will … unwind Labor's taxpayer-funded and badly designed electric car subsidies, saving upwards of $3 billion over the forward estimates and $23 billion over the medium term,' his campaign said in a statement.
The Australian reported that Dutton may have misheard the original question on Monday.
But it didn't stop Labor from sinking its teeth into the backflip.
'The Coalition is a risky and reckless bin fire of inconsistency and incompetence on the economy,' Treasurer Jim Chalmers said.
'This is what happens when they spend three years doing everything they can to avoid coming clean on their cuts. Every day a new, more embarrassing combination of Coalition cuts and chaos.'
National Automotive Leasing and Salary Packaging Association (NALSPA) CEO Rohan Martin said the Coalition's backflip "would disproportionately affect average working Australians" at a time when the "cost-of-living crisis, including escalating transport costs, is hitting hard".
It has called on the Coalition to rethink its stance.
"Such a winding back doesn't align with the Coalition's own election pledges—like tax relief through an offset, scrapping the New Vehicle Efficiency Standard penalties to lower upfront car costs, and halving the fuel excise—because the EV FBT exemption successfully delivers on all those fronts."
The Coalition has promised slash the fuel excise from 50 cents to 25 cents per litre for 12 months, if elected, to bring down the cost of petrol.
The cost of fuel has decreased recently as US President Donald Trump's ongoing tariff war created instability in the global oil markets.
The New Vehicle Efficiency Standard was introduced earlier this year and it gives every car manufacturer a CO2 target that they either have to meet or beat each year, otherwise they could be penalised.
The opposition wants to get rid of those penalties so that car manufacturers aren't reprimanded if they don't roll out fuel-efficient vehicles.Sign in to access your portfolio
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

What Does It Cost To Charge a Tesla Monthly Compared To Gas for a BMW 3 Series?
What Does It Cost To Charge a Tesla Monthly Compared To Gas for a BMW 3 Series?

Yahoo

time5 minutes ago

  • Yahoo

What Does It Cost To Charge a Tesla Monthly Compared To Gas for a BMW 3 Series?

Electric vehicles promise a lot, including lower emissions, less maintenance and high-end tech. But for everyday drivers, the real question is simpler: How much does it actually cost to run one? Not the sticker price or tax incentives. The monthly cost to keep it moving. Consider the Tesla Model 3 and the gas-powered BMW 3 Series, two well-known sedans with similar performance. One charges up, the other fills up. And when you break down the costs, the gap between them gets surprisingly wide. Check Out: Read Next: Charging a Tesla The Tesla Model 3 rear-wheel drive (RWD) has an EPA-estimated range of 272 miles and a usable battery capacity of 57.5 kilowatt hours (kWh), according to Green Cars Compare. This translates to an efficiency of about 4.61 miles per kWh under ideal conditions. Assuming an average monthly driving distance of 1,200 miles, the Tesla would use roughly 260 kWh of electricity each month. At the current U.S. average residential electricity rate of 17.45 cents per kWh, according to Choose Energy, monthly charging costs come to about $45.37. Using Tesla Superchargers or other public fast chargers, which typically cost between 40 and 60 cents per kWh, will raise the monthly cost accordingly if relied upon frequently. Discover More: How Long Does Charging Take? Charging time depends on how and where it's done, according to the Department of Transportation. Level 1 (120V outlet): Two to five miles of range per hour. A full charge could take 40 to 50 hours — only useful for very light driving. Level 2 (240V home charger): 10 to 20 miles per hour. Fully recharges in about 4 to 10 hours. Tesla Supercharger: A charge to 80% typically takes 20 minutes to an hour, and adds 180 to 240 miles. Fuel Cost for a BMW 3 Series A 2025 BMW 330i averages around 31 miles per gallon combined, according to Edmunds. Driving 1,200 miles per month means buying about 38.7 gallons of gas. At $3.16 per gallon, the national average as of July 2025, that works out to $122.41 per month. Charging a Tesla Model 3 RWD at home costs about $45 per month, while fueling a BMW 3 Series averages around $122 per month. That's $77 in monthly savings, or $924 annually, just on energy expenses if you choose the Tesla over the BMW. Cost Per Mile Tesla: Uses about 0.22 kWh per mile, with a cost of $0.1745 per kWh. This comes out to roughly 3.8 cents per mile. BMW 3 Series: With gas prices around $3.16 per gallon and an average fuel economy of 31 miles per gallon, the cost comes to about 10 cents per mile. Other Cost Considerations Electric vehicles like the Tesla avoid many routine maintenance expenses common to gas cars, such as no oil changes, no spark plugs and no emissions tests. Regenerative braking also extends brake life, reducing replacement frequency. BMW owners typically face higher maintenance and repair costs, especially as the vehicle ages, along with fluctuating fuel prices that can spike unexpectedly. In contrast, electricity prices tend to be more stable and predictable. More From GOBankingRates How Much Money Is Needed To Be Considered Middle Class in Your State? This article originally appeared on What Does It Cost To Charge a Tesla Monthly Compared To Gas for a BMW 3 Series? Sign in to access your portfolio

What Does It Cost To Charge a Tesla Monthly Compared To Gas for a BMW 3 Series?
What Does It Cost To Charge a Tesla Monthly Compared To Gas for a BMW 3 Series?

Yahoo

time35 minutes ago

  • Yahoo

What Does It Cost To Charge a Tesla Monthly Compared To Gas for a BMW 3 Series?

Electric vehicles promise a lot, including lower emissions, less maintenance and high-end tech. But for everyday drivers, the real question is simpler: How much does it actually cost to run one? Not the sticker price or tax incentives. The monthly cost to keep it moving. Consider the Tesla Model 3 and the gas-powered BMW 3 Series, two well-known sedans with similar performance. One charges up, the other fills up. And when you break down the costs, the gap between them gets surprisingly wide. Check Out: Read Next: Charging a Tesla The Tesla Model 3 rear-wheel drive (RWD) has an EPA-estimated range of 272 miles and a usable battery capacity of 57.5 kilowatt hours (kWh), according to Green Cars Compare. This translates to an efficiency of about 4.61 miles per kWh under ideal conditions. Assuming an average monthly driving distance of 1,200 miles, the Tesla would use roughly 260 kWh of electricity each month. At the current U.S. average residential electricity rate of 17.45 cents per kWh, according to Choose Energy, monthly charging costs come to about $45.37. Using Tesla Superchargers or other public fast chargers, which typically cost between 40 and 60 cents per kWh, will raise the monthly cost accordingly if relied upon frequently. Discover More: How Long Does Charging Take? Charging time depends on how and where it's done, according to the Department of Transportation. Level 1 (120V outlet): Two to five miles of range per hour. A full charge could take 40 to 50 hours — only useful for very light driving. Level 2 (240V home charger): 10 to 20 miles per hour. Fully recharges in about 4 to 10 hours. Tesla Supercharger: A charge to 80% typically takes 20 minutes to an hour, and adds 180 to 240 miles. Fuel Cost for a BMW 3 Series A 2025 BMW 330i averages around 31 miles per gallon combined, according to Edmunds. Driving 1,200 miles per month means buying about 38.7 gallons of gas. At $3.16 per gallon, the national average as of July 2025, that works out to $122.41 per month. Charging a Tesla Model 3 RWD at home costs about $45 per month, while fueling a BMW 3 Series averages around $122 per month. That's $77 in monthly savings, or $924 annually, just on energy expenses if you choose the Tesla over the BMW. Cost Per Mile Tesla: Uses about 0.22 kWh per mile, with a cost of $0.1745 per kWh. This comes out to roughly 3.8 cents per mile. BMW 3 Series: With gas prices around $3.16 per gallon and an average fuel economy of 31 miles per gallon, the cost comes to about 10 cents per mile. Other Cost Considerations Electric vehicles like the Tesla avoid many routine maintenance expenses common to gas cars, such as no oil changes, no spark plugs and no emissions tests. Regenerative braking also extends brake life, reducing replacement frequency. BMW owners typically face higher maintenance and repair costs, especially as the vehicle ages, along with fluctuating fuel prices that can spike unexpectedly. In contrast, electricity prices tend to be more stable and predictable. More From GOBankingRates How Much Money Is Needed To Be Considered Middle Class in Your State? This article originally appeared on What Does It Cost To Charge a Tesla Monthly Compared To Gas for a BMW 3 Series? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

London Calling for Tesla (TSLA) as Self-Driving Passes Magic Test
London Calling for Tesla (TSLA) as Self-Driving Passes Magic Test

Business Insider

time3 hours ago

  • Business Insider

London Calling for Tesla (TSLA) as Self-Driving Passes Magic Test

Troubled EV maker Tesla (TSLA) has finally some good news to share after a troubling week even if it is thousands of miles across the Atlantic. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Roundabout Regulations The company released two videos today showing the successful testing of its fully self-driving vehicles in the traditionally warren-like and congested roads of Great Britain. It helped its share price climb nearly 4%. The videos showed the group's Model 3 car navigating busy London streets and passing landmarks such as Big Ben and Buckingham Palace. It also showed the vehicle coping with the so-called Magic Roundabout in Swindon, in the West of England. Americans might know these as traffic circles. The Magic Roundabout consists of five mini roundabouts encircling a central island, and was voted U.K. roundabout of the year in 2024. It has a number of descriptions ranging from 'amazing' to a 'white knuckle ride.' Tesla said the Model 3 used for the videos contains the same hardware as vehicles delivered to customers today, but has software currently available only to its engineers. Tesla Troubles The company is still awaiting regulatory approval to use its unsupervised full self-driving capabilities in the U.K., but this is a step in the right direction. Steve Gooding, director of motoring research charity the RAC Foundation was certainly impressed. He said: 'It is a mistake to think that driverless technology won't be able to cope with the intricacies and idiosyncrasies of the U.K.'s roads – hats off to anyone, or anything, that can successfully negotiate the Magic Roundabout.' However, he cautioned that more testing was needed. Tesla has itself been in a spin this week, following disappointing results, and this year as a combination of more intense competition and chief executive Elon Musk's on and very much off relationship with President Trump battered brand reputation and investor sentiment. Tesla also faces the loss of the $7,500 EV tax credit and stands to make much less money from selling regulatory credits to other automakers after recent changes to federal tax law. It really needs its self-driving venture to prove its mettle in London, Swindon and beyond. Is TSLA a Good Stock to Buy Now? On TipRanks, TSLA has a Hold consensus based on 14 Buy, 14 Hold and 7 Sell ratings. Its highest price target is $500. TSLA stock's consensus price target is $314.48, implying a 0.71% downside.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store