It can be difficult to work out the cost of electricity when an employee charges the electric car at home. This is because the electricity used to charge the electric car is combined with the total amount of electricity consumed by an employee's home and is unable to be separately identified and valued.
To make it easier for you to calculate the electricity costs you can choose to use the shortcut electric vehicle (EV) home charging rate if you're eligible.
The EV home charging rate is 4.2 cents per kilometre.
If you choose to use the EV home charging rate, you can't include commercial charging station costs unless you can accurately determine the percentage of the vehicle's total charge based on the type of charging location.
Make sure you keep the necessary records to substantiate how you determined the cost of electricity used to charge the electric car.
Example:
Bill's employer provides him with an eligible electric car for his private use. During the 2024 - 25 FBT year:
the car generates a report detailing that Bill charged the electric car at home 75% of the time
Bill travelled a total of 10,000 km
Bill's home charging kilometres can be determined by applying the home charging percentage of 75% to the 10,000 total kilometres travelled and his employer decides to use the EV home charging rate of 4.20 cents:
10,000 km x 75% = 7,500 km
7,500 km x 4.20 cents = $315
The component of the electricity expense for FBT purposes would be $315. Bill has also kept relevant records relating to commercial charging station costs so his employer can include these costs to calculate the remaining component of the electricity expense.
Plug-in Hybrid Electric Cars
To work out the cost of the electricity used to charge an exempt plug-in hybrid electric vehicle (PHEV), you need to calculate the actual electricity expenses. You can't use the electric (EV) home charging rate.
Make sure you keep the necessary records to substantiate how you determined the cost of fuel including electricity used to charge and run the PHEV.
Also remember that from 1 April 2025 the FBT exemption is removed, so make sure the cars are purchased and registered into the company name before that date 🚗🚗🚗
If you have any further question pleae contact your Client Manager.
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