The Fringe Benefits Tax (FBT) exemption is a tax provision that applies to certain electric vehicles (EVs) in Australia. FBT is a tax levied on non-cash benefits provided to employees by their employers.In Australia, the FBT exemption for electric vehicles aims to encourage the adoption of environmentally friendly transportation options. Under this exemption, eligible employers are not required to pay FBT on electric vehicles provided to employees for their private use.To qualify for the FBT exemption, the vehicle must be classified as an electric vehicle and meet specific emissions criteria, as outlined by the tax regulations. Generally, battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) that meet certain emission standards are eligible for the exemption.