EV Charger Tax Breaks: Rebates & Deductions for Homes & Businesses in Australia

by EVOS Staff 4 July 2024
EV Charger Tax Breaks

Tax season is here, and if you own an electric vehicle, you might be wondering what EV-related expenses you can claim on your return. Let’s explore the potential tax deductions and benefits available to Australian EV drivers.

Home Chargers: If you use your electric vehicle for business purposes, the cost of installing a home charger can be considered a depreciating asset. This means you can claim a deduction for the decline in value over its effective life. The deduction needs to be adjusted for any private use of the charger.

Electricity Costs: You can claim the cost of electricity used for charging at home if it’s related to your work. According to the ATO, If you purchase an electric charger for your home, this expense could be tax deductible. You can use either the logbook method or the ATO’s new EV home charging rate (4.2 cents per kilometre) to calculate your deduction.

Business and Commercial: EV Chargers Tax Benefits

Businesses and commercial entities stand to gain more substantial tax benefits concerning EV chargers. This includes asset write-offs and depreciation benefits:

  1. Instant Asset Write-off: Businesses can claim an immediate deduction for the business portion of the cost of an asset in the year it is first used or installed ready for use. As per the latest Australian Tax Office (ATO) regulations, businesses with an aggregated turnover of less than $5 billion can apply for an instant asset write-off if the cost of the asset is less than the specified threshold, which promotes investment in infrastructure like EV chargers.
  2. Depreciation Deductions: Commercial entities can also leverage depreciation deductions for EV chargers. The ATO allows for the depreciation of electric vehicle chargers, treating them as capital assets. This means businesses can spread the deduction over several years, which aids in cash flow management while enjoying the benefits of EV infrastructure.
  3. Fleet Management Benefits: Businesses can also gain tax deductions for fleet management, where chargers are a critical component. EVOS, with its state-of-the-art Fleet 22 Charger and robust fleet management platform, offers solutions that can be tax-deductible, contributing to overall operational efficiency and sustainable business practices.

Government Incentives to Encourage EV Charger Installation

Australia’s federal and state governments encourage the adoption of electric vehicles and their associated infrastructure with various incentives:

  1. Federal Government Programs: The Australian Renewable Energy Agency (ARENA) provides funding and grants to support the research, development, and deployment of EV charging infrastructure. These programs aim not just at reducing carbon emissions but also at increasing the adoption of EVs across the nation.
  2. State Government Grants: State governments have introduced grants and rebates for both individuals and businesses to install EV chargers. For instance, Victoria’s Zero Emissions Vehicle Roadmap features incentives for the installation of home and public EV chargers, aimed at boosting EV adoption rates.

Investing in EV infrastructure is a significant decision, and EVOS offers a compelling suite of solutions tailored for various customer segments. EVOS takes pride in designing and manufacturing all its products in Australia.

One of the standout features of EVOS products is their simplicity. EVOS integrates software solutions into its chargers, which means ease of use and eliminating the need for third-party apps. Whether it’s the residential SB7 Charger or the high-powered commercial Fleet 22 Charger, users experience hassle-free charging with optimal efficiency.