---
title: Electric Vehicles - Exempt Reportable FBT
description: Although the private use of an eligible electric car is exempt from FBT, you include the value of the benefit when working out whether an employee has a reportable fringe benefits amount (RFBA).
---

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# Electric Vehicles - Exempt Reportable FBT

## Although the private use of an eligible electric car is exempt from FBT, you include the value of the benefit when working out whether an employee has a reportable fringe benefits amount (RFBA).

An employee has an RFBA if the total taxable value of certain fringe benefits provided to them (or their associate) is more than $2,000 in an FBT year. The RFBA must be reported through Single Touch Payroll or on the employee's payment summary.

The amount of RFBA reported for an employee is not added to an employee’s taxable income for determining income tax and Medicare Levy liabilities. **However, it is added to an employee’s taxable income for calculating Medicare Levy Surcharge liability, and is [included in income tests](https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/working-as-an-employee/reportable-fringe-benefits-for-employees/consequences-of-having-a-reportable-fringe-benefits-amount) for family assistance, child support assessments and some other government benefits and obligations.**

---

What does this mean? 

If you take out a novated lease on an eligible electric vehicle you will enjoy paying for the vehicle 100% pre-tax resulting in a sizeable income tax saving.

Whilst you will not pay FBT on the lease, your employer will report what the FBT should be. If you claim or receive government benefits, the value of these will be affected.

---

Seek independent taxation advice on your personal circumstances. 

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