Battery electric vehicles (BEVs) are massively subsidised in Australia.
The Fringe Benefits Tax (FBT) exemption for BEVs costs the federal government more than $500 million in lost tax revenue each year—a figure that will increase alongside the take-up of BEVs.
Under the FBT exemption, somebody leasing a $60,000 car can save more than $12,000 per year if they opt for a BEV over an internal combustion engine (ICE) or hybrid.
