Fringe benefits tax
If an employer provides an employee or associate with an EV that lead to the provision of car, residual or expense payment benefits, as per this draft guideline, have the option to use the shortcut method ie a rate of 4.20 cents per kilometre travelled to calculate taxable value of such benefits.
Income tax deductions
The shortcut method can also be used by an individual taxpayer to calculate work-related car expenses for income tax purposes when using the logbook method, for a motor vehicle which is not a car, a deduction may also be claimed by calculating the total kilometres travelled by the vehicle during an income year.
Eligibility for making a claim
To be eligible to apply this method, yearly odometer readings, logbooks and at least one electricity bill must be maintained/obtained.
Adopting this methodology is optional, and you can choose to opt-out/opt-in on a yearly basis.
Note that if the short cut method is not used, records of actual costs will need to be kept. This would include an apportionment of home electricity and/or receipts for the cost of charging at commercial charging stations.
The shortcut method is not available for plug-in hybrid vehicles. Records of actual costs need to be kept for these.
If you would like to discuss further or require help in getting relevant information ready, please feel free to contact our office.