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New EV Home Charging Rate: What You Need to Know
The Australian Taxation Office (ATO) has recently introduced new guidelines for calculating electricity costs associated with home charging.
This update is particularly relevant for employers providing EVs to staff for personal use and employees who incur work-related car expenses.
The new guideline provides a simplified method for determining the cost of electricity when charging an EV at home, known as the EV home charging rate. This fixed rate stands at 4.20 cents per kilometre.
Here are some key points to keep in mind
- Employees must have incurred an electricity expense when charging the electric vehicle at home to rely on the guideline.
- Employer clients can use this rate from 1 April 2022 for fringe benefits tax (FBT) reporting purposes.
- Employee clients can utilize this rate from 1 July 2022 for income tax purposes, particularly when using the logbook method.
- If opting for the EV home charging rate, clients cannot include costs from commercial charging stations unless they can accurately determine the percentage of the vehicle's total charge based on the type of charging location.
- This rate specifically applies to zero-emission electric cars. Plug-in hybrid vehicles, electric motorcycles, or electric scooters are not covered.
- It's essential to maintain relevant records to support these calculations.
How we can help
If you need help with your taxes give us a call on 1300 513 332 or fill out our enquiry form here. At TaxAssist Accountants we offer a free initial consultation.
Date published 22 Apr 2024 | Last updated 24 Apr 2024
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