This bill did not become law and is no longer proceeding.
Budget, tax & economy
The bill would keep the fringe benefits taxA tax on certain perks an employee gets through work, such as a car provided by an employer. break for plug-in hybrid electric vehicles until 1 April 2030, extending tax savings for employers and workers who get these cars through work.
The existing fringe benefits taxA tax on certain perks an employee gets through work, such as a car provided by an employer. break for plug-in hybrid vehicles will expire soon, and ongoing range-anxiety concerns have left barriers to wider uptake. The bill extends the exemption until 1 April 2030 to keep supporting lower-emission vehicle adoption and encourage importers to stock more compliant models.
Australia already gave plug-in hybrid electric vehicles a fringe benefits taxA tax on certain perks an employee gets through work, such as a car provided by an employer. exemption under the 2022 electric car discount laws, but that concession was due to expire and supporters argued many drivers still wanted petrol backup while shifting to lower-emission driving. This 2024 bill responded by trying to extend the exemption to 1 April 2030, pitching plug-in hybrids as a bridge technology that could keep uptake moving and help importers stock lower-emission vehicles, but the measure did not pass and lapsed when Parliament ended in July 2025.
No significant public case against the bill is recorded so far, with publicly available sources describing it as a practical way to keep supporting lower-emission vehicles while full electric uptake remains uneven. The criticism recorded so far is therefore limited to an implicit policy reservation that extending the tax break continues support for plug-in hybrids rather than pushing buyers faster toward fully electric cars.
Senator David Van introduced this bill. Speeches supporting it came from some crossbench members.
Did it become law?
No
The bill did not complete passage through Parliament.
Final passage
No final passage
The bill has not completed passage and is no longer proceeding.
Time before failure
432 days
From introduction to the final recorded step before the bill stopped proceeding
Meaning
The bill would keep the fringe benefits taxA tax on certain perks an employee gets through work, such as a car provided by an employer. break for plug-in hybrid electric vehicles until 1 April 2030, extending tax savings for employers and workers who get these cars through work.
The bill would continue government support for plug-in hybrids as a halfway step to full electric cars, so buyers can keep petrol backup while getting more low-emission driving.
The bill would favour plug-in hybrids for people worried about electric car range, because these vehicles can handle daily trips on electric power and still use petrol when needed.
The bill would push vehicle importers to bring in more low-emission models by increasing demand for plug-in hybrids and helping them meet Australia’s new vehicle emissions rules.
This Bill proposes extending the Fringe Benefits Tax (FBT) concessions for plug-in hybrid electric vehicles (PHEVs) until 1 April 2030, promoting the continued adoption of lower-emission vehicles in Australia’s transport sector. This aligns with national goals for reducing greenhouse gas emissions.Treasury Laws Amendment (Extending the FBT Exemption for Plug-In Hybrid Electric Vehicles) explanatory memorandum
Extending the sunset clause reflects previous strategies to encourage the uptake of hybrid and electric vehicles, acknowledging ongoing barriers to adoption and the need for continued support. This Bill merely extends the existing tax incentive and serves as a gateway solution. Evidence shows that drivers who have experienced electric vehicles in a work or leisure context frequently go on to purchase their own.Treasury Laws Amendment (Extending the FBT Exemption for Plug-In Hybrid Electric Vehicles) explanatory memorandum
There is the ever-present concern with EVs around range anxiety, expressing concern that some drivers may not be able to enjoy their weekend activities if they switch to electric vehicles due to perceived limitations in range and power. Plug-in hybrid electric vehicles (PHEVs) address ‘range anxiety’ by providing efficient, clean driving for everyday activities such as shopping, school runs and commuting to work while still offering the reassurance of petrol backup if the electric charge runs low between refuels.Treasury Laws Amendment (Extending the FBT Exemption for Plug-In Hybrid Electric Vehicles) explanatory memorandum
This Bill supports new vehicle importers meet their New Vehicle Emissions Standards targets. The increased demand for PHEVs, driven by attractive financial benefits for businesses and consumers, will encourage importers to stock a wider range of compliant vehicles that meet emissions standards.Treasury Laws Amendment (Extending the FBT Exemption for Plug-In Hybrid Electric Vehicles) explanatory memorandum
Context
Australia already gave plug-in hybrid electric vehicles a fringe benefits taxA tax on certain perks an employee gets through work, such as a car provided by an employer. exemption under the 2022 electric car discount laws, but that concession was due to expire and supporters argued many drivers still wanted petrol backup while shifting to lower-emission driving. This 2024 bill responded by trying to extend the exemption to 1 April 2030, pitching plug-in hybrids as a bridge technology that could keep uptake moving and help importers stock lower-emission vehicles, but the measure did not pass and lapsed when Parliament ended in July 2025.
Electric car discount laws put the PHEVA car that can run on battery power for short trips and also uses petrol when the battery runs low. FBTA tax on certain perks an employee gets through work, such as a car provided by an employer. exemption in place
The 2022 electric car discount legislation created the plug-in hybrid fringe benefits taxA tax on certain perks an employee gets through work, such as a car provided by an employer. concession that this later bill sought to keep operating for longer.
Explanatory memorandum ↗Supporters argue plug-in hybrids are still needed as a bridge to full EVsA vehicle powered by electricity rather than a petrol or diesel engine.
The bill's explanatory material said the exemption should continue because the existing benefit would otherwise expire soon and plug-in hybrids could ease range-anxiety concerns while lifting lower-emission vehicle uptake.
Explanatory memorandum ↗Second reading speechThe main speech used to present the bill's purpose and persuade Parliament to support it. links the extension to cleaner transport
The second reading speechThe main speech used to present the bill's purpose and persuade Parliament to support it. framed the measure as part of shifting Australia towards lower-emission transport instead of continued dependence on conventional fossil-fuel vehicles.
Hansard ↗Bill introduced to extend the PHEVA car that can run on battery power for short trips and also uses petrol when the battery runs low. FBTA tax on certain perks an employee gets through work, such as a car provided by an employer. exemption to 2030
The bill was introduced in the SenateThe chamber of Parliament where this bill was introduced and debated. to push the sunset date out to 1 April 2030 and was presented as a way to keep financial incentives in place for employers and workers using plug-in hybrids.
Parliamentary timeline ↗Bill lapses at the end of Parliament
The proposal never completed its parliamentary passage, so the attempted extension of the plug-in hybrid tax break fell away when the Parliament ended.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
Key criticism
No significant public case against the bill is recorded so far, with publicly available sources describing it as a practical way to keep supporting lower-emission vehicles while full electric uptake remains uneven. The criticism recorded so far is therefore limited to an implicit policy reservation that extending the tax break continues support for plug-in hybrids rather than pushing buyers faster toward fully electric cars.
No significant public case against the bill is recorded so far.
Votes
No recorded votes were found before this bill stopped proceeding.
Parliamentary debate
Start here — lead voices
Van supports the bill and wants the SenateThe chamber of Parliament where this bill was introduced and debated. to extend the FBTA tax on certain perks an employee gets through work, such as a car provided by an employer. exemption for plug-in hybrid vehicles until 2030.
Read in Hansard ↗All speeches by bloc
1 speaker · 1 support
“I urge my colleagues to support this Bill and join the movement towards a brighter, cleaner and more sustainable future for Australia.”Read the full speech in Hansard ↗
Record
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Lapsed at end of Parliament
Lapsed at end of Parliament
The bill reached this recorded parliamentary step.
