The demand for plug-in hybrid vehicles (PHEVs) is on the rise, with sales up nearly 130 per cent compared to last year. This surge in demand can be attributed to business buyers taking advantage of a runout deal before major changes to fringe benefits tax (FBT) laws take effect.
Currently, PHEVs are exempt from paying FBT if they are priced under $89,332. However, changes announced by the Australian Taxation Office (ATO) in March 2024 will alter this exemption, making PHEVs no longer considered zero- or low-emissions vehicles after April 1, 2025. This change has prompted businesses and employees to rush to acquire PHEVs before the deadline to claim the FBT exemption.
If you’re considering purchasing a PHEV to capitalize on the tax cuts, here are some of the most affordable options available in the market:
1. MG HS Plus EV:
The MG HS Plus EV is one of the most affordable new PHEVs in Australia, starting at $31,790 for used models and $45,990 for new ones. It offers a 1.5-litre turbocharged petrol engine, a 90kW electric motor, and up to 63km of electric-only range on a full charge. The MG HS Plus EV comes with a 10.1-inch touchscreen, adaptive cruise control, lane-keep assist, and more.
2. Mitsubishi Eclipse Cross:
The plug-in hybrid version of the 2024 Eclipse Cross starts at sub-$50,000 and offers all-wheel drive capability. It features two electric motors along with a 2.4-litre petrol engine, providing fuel economy as low as 1.9L/100km. The Eclipse Cross comes with standard safety features like forward collision warning, lane-departure warning, and adaptive cruise control.
3. BYD Sealion 6:
The BYD Sealion 6 is a new entry into the PHEV market, priced under $50,000. It offers a 1.5-litre four-cylinder petrol engine combined with the DM-i BYD hybrid system, providing a combined output of 160kW and 300Nm. The Sealion 6 features a 15.6-inch infotainment screen, autonomous emergency braking, and a 360-degree camera.
4. Mitsubishi Outlander PHEV:
The Mitsubishi Outlander remains the top-selling PHEV in Australia, with pricing starting from sub-$60,000 for new models. It offers two electric motors combined with a 2.4-litre petrol engine, providing fuel consumption of around 1.4L/100km. The Outlander comes with Apple CarPlay, adaptive cruise control, and automatic headlights.
5. Peugeot 308 GT Sport PHEV:
The Peugeot 308 GT Sport PHEV is a sporty option in the PHEV market, priced at $59,990 driveaway until the end of July. It features a 1.6-litre petrol turbo engine, an 81kW electric motor, and a combined output of 165kW. The 308 PHEV boasts a 60km electric-only range and comes with a 10-inch infotainment system and advanced safety features.
As the deadline to claim the FBT exemption on PHEVs approaches, now is the time for businesses and employees to consider investing in these vehicles to benefit from the tax cuts. Whether you opt for the affordable MG HS Plus EV or the sporty Peugeot 308 GT Sport PHEV, there are plenty of options available to suit your needs and budget.