This member's bill would amend the Income Tax Act to exclude zero-emission vehicles provided to staff as part of their salary package from fringe benefit tax (FBT) for a five-year period.
These are claims MPs made in Parliament’s debate — not verified facts.
This member's bill amends the Income Tax Act to exclude zero-emission vehicles — fully electric and hydrogen fuel-cell cars — provided by employers from fringe benefit tax for a five-year period. Fringe benefit tax (FBT) is the tax an employer pays on non-cash perks, such as a work vehicle that staff can also use privately. Removing FBT on clean vehicles lowers the cost to businesses of putting them in their fleets, which is intended to speed up the switch to electric vehicles. It affects employers, their employees, and the wider vehicle market, including the future supply of used EVs.
It is a member's bill, broadly modelled on Australia's Electric Car Discount FBT exemption. Supporters argue it accelerates fleet electrification and emissions reductions, feeds cheaper second-hand EVs into the market over time, and is a targeted, cost-effective incentive. Opponents point to forgone tax revenue, that the benefit flows mainly to higher-income employees with salary-packaged cars, and questions about the value and fairness of a time-limited perk compared with other climate measures.
See the Parliament.nz ↗ site for the full bill.