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Labor extends EV tax break to encourage cheaper vehicles amid soaring fuel prices

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Labor has opted to retain its electric vehicle discount in full for another year, as Australians rush to buy EVs amid soaring fuel costs linked to the Iran war. But the budget next Tuesday will include a number of “sensible changes” that wind back the scale of support over the next three years, as the government acknowledges the need to deliver a “more financially sustainable” tax incentive for EVs amid ballooning costs of the scheme. The electric car discount was introduced at the start of 2023 and has cut thousands of dollars from the cost of leasing an eligible EV through an exemption to fringe benefits tax (FBT). Sign up for the Breaking News Australia email The treasurer, Jim Chalmers, and energy minister, Chris Bowen, announced in a joint statement on Monday evening that the policy would be extended until the end of March 2027. The full FBT discount will then only apply to vehicles costing under $75,000 until the start of April 2029.…

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