The threshold for fuel efficient vehicles was boosted by $5,257, while the threshold for regular vehicles was boosted by $2,697.

Fuel efficient vehicles are defined as vehicles consuming less than 7 litres per 100km on a combined fuel cycle.

At a tax rate of 33%, this delivers motorists a potential $1,734 and $890 tax saving respectively.

It also means popular electric vehicles such as the Kia EV6 AWD now fall under the threshold. 

See Also: Five Electric Vehicles Around $50,000

NewLCTThresholds.jpg

Source: ATO

Labor took to the election a policy to exempt electric vehicles from the 47% fringe benefits tax, and to remove import tariffs.

The fringe benefits tax - applied to personal use of vehicles purchased via a business - would apply to EVs priced below the luxury car tax threshold, and would take effect from 1 July 2022.

While private buyers won't receive this benefit, it is designed to encourage uptake of EVs purchased through novated leases and other business car schemes.

Australia imposes a 5% import tariff on vehicles imported from countries with which there is no free trade agreement (FTA).

There are already FTAs in place with China, Japan, South Korea, and the United States, which is where the majority of electric vehicles for sale in Australia originate.

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In the market for a new car? The table below features green car loans with some of the lowest interest rates on the market for low-emissions vehicles.

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Filters
LenderCar LoanInterest Rate Comparison Rate* Monthly Repayment Interest Type Vehicle Type Maximum Vehicle Age Ongoing Fee Upfront Fee Total Repayment Early Repayment Instant Approval Online Application TagsFeaturesLinkCompare
6.09% p.a.
7.21% p.a.
$581
Variable
New
1 year
$8
$400
$34,874
 Featured
  • Discounted rate on qualifying electric cars
  • Up to 7 yrs loan term
  • Redraw available up to $5,000/day
5.99% p.a.
7.20% p.a.
$580
Fixed
New, Used
7 years
$12
$250
$34,791
5.99% p.a.
5.99% p.a.
$580
Variable
New
No Max
$0
$0
$34,791
6.19% p.a.
6.54% p.a.
$583
Variable
New
No Max
$0
$250
$34,958
6.25% p.a.
6.52% p.a.
$583
Fixed
New, Used
3 years
$0
$195
$35,009
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates for car loans and secured personal loans for the relevant amounts and terms are for secured loans unless indicated otherwise. The comparison rates for unsecured personal loans are applicable for unsecured loans only. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of . View disclaimer.

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