Battery subsidies are more reverse Robin Hood energy policy

Friday 24 July 2026

The taxation arrangements around electric vehicles (EVs) are a reverse Robin Hood arrangement that extracts taxes from ordinary Australians to distribute to the rich.

A case in point is the EV fringe benefits tax (FBT) exemption, which was introduced in 2022 to make EVs more affordable for employees through salary packaging and novated leases.

Treasury expected the FBT exemption to cost around $200 million annually but now estimates the scheme to cost over $1 billion a year in forgone revenue.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.