Business electric vehicles and tax law

Business fleets and electric vehicles: Taxation changes to support home charging

Business car fleets are an effective pathway to increase battery electric vehicles (BEVs), but business site re-charging infrastructure facilities are low. Taxation changes can provide an immediate solution by facilitating charging BEVs at employees’ homes.

Researchers

  • Dr Diane Kraal (Monash University)
  • Dr Anna Mortimore (Griffith University)

Background and aims

Business fleets need to increase their uptake of battery electric vehicles (BEVs) in Australia. Currently BEVs only comprise 1% of vehicles in business fleets. Nationally, transport CO2 emissions are 18% of the total. We address the EV barriers seen by business in transitioning to cleaner energy and a reduction of emissions.  The potential of BEV home charging by company and government fleet employees is investigated. Home charging is seen as a step towards dealing with a number of issues preventing the acquisition of BEVs in Australia.

Method

  1. Literature review.
  2. An examination of the federal Fringe Benefits Tax (FBT) for cars, and car-related income tax concessions. Policy, framework, objectives and principles will be considered. Address both a reduction of the ‘total cost of ownership’ while preparing fleets to have the right equipment to reduce impacts on the grid.
  3. Qualitative research includes interviews of selected managers of large vehicle fleets to provide insights on how they assess the ‘value proposition’ of their current fleet vehicle selection for both ICEVs and BEVs. Outputs will inform the design of the fleet manager survey and fleet employees survey.
  4. Quantitative research includes preparation and testing preliminary  survey on fleet management issues on future uptake of BEVs.  Design of survey will be discussed with stakeholders.

Outputs

  1. Literature Review.
  2. Interview data (qualitative) generation; and full analysis in report form. Analysis and reporting of proposed tax change to fleet operators and industry partners.
  3. Preliminary and tested (quantitative) survey of fleet managers, and fleet employees.
  4. Draft report of and presentation of findings to industry partners.
  5. Final project report:
    • A thorough review of FBT and income tax impediments to fleet employees’ home charging.
    • Recommended FBT and income tax changes.
    • An explanation of how tax changes could lead to benefits for the grid and customers (quantified).
    • Outcomes of fleet manager interviews.
    • Outcomes of test preliminary surveys of fleet managers and employees