Dutton Confirms Coalition Plans to Cut EV Tax Break

Australian Opposition Leader Peter Dutton and the Coalition have confirmed they will scrap Labor's popular fringe benefits tax exemption for electric vehicles (EVs) bought through novated leases if elected, reversing Dutton's earlier public assurances that the policy would be retained. The move, described by the Coalition as a crackdown on 'wasteful spending,' is projected to save $3 billion over four years and $23 billion over the medium term. Dutton attributed the confusion to a misunderstanding at a previous press conference, insisting there has been no policy change despite mixed messages. The Electric Vehicle Council criticized the reversal, arguing the exemption has helped many Australians afford EVs, especially in outer suburbs, and its removal could hinder EV adoption during a cost-of-living crisis. The tax break, introduced by Labor in 2022, has seen much higher uptake than anticipated, allowing Australians to buy EVs under $91,000 through novated leases without paying fringe benefits tax. The Coalition maintains that removing the scheme aligns with their broader fiscal strategy and opposition to what they term 'big taxes' on vehicles.