The Electric Vehicle Discount Policy is a government initiative implemented at the federal level with the aim of lowering the purchase cost of electric vehicles (EVs) and encouraging greater adoption among Australians.

This policy encompasses two significant discounts.  Firstly, it eliminates the 5% import tax on eligible EVs.  It is worth noting that many EVs are already exempt from this tax due to their importation from countries with which Australia has a Fair Trade Agreement.

The second and particularly noteworthy aspect of this policy is the full exemption of EVs acquired through a novated lease from Fringe Benefits Tax (FBT).  This change is particularly exciting as it encourages individuals to take up EVs under a novated lease arrangement without incurring any FBT obligations.