If you were one of the many people left feeling a bit ripped off when plug-in hybrids (PHEVs) got booted out of the FBT exemption for novated leases on April 1 — you’re not alone. That change hit hard. But, there’s at least some good news for PHEV owners on the home front.
The ATO has just dropped a draft update to its guidelines, and it’s aiming to make life a little easier when it comes to claiming electricity costs for charging your PHEV at home.
Right now, unless you’re into spreadsheets and reading your smart meter like a hawk, figuring out how much of your power bill comes from topping up your car is a nightmare. But the ATO is proposing a simpler method — kind of like what already exists for full battery EVs. Instead of tracking every watt, you’d just apply a standard cents-per-kilometre rate to cover home charging. Easy.
They haven’t locked in the final rate for PHEVs yet — this is still a draft — but the idea is to cut down the admin and give people a fair, consistent way to calculate costs for tax time (whether you’re an employee claiming work-related use or an employer sorting out FBT).
It’s not the full redemption arc for PHEVs after losing the FBT perk, but it’s something. A practical win that saves time and hassle.
The ATO is taking feedback until July 25, so if you’ve got a PHEV and strong feelings (or just want a simpler way to deal with your taxes), now’s your chance to weigh in.
Join the discussion or give feedback here
Get in touch with us if you want to learn more